Australia’s exports likely rebounded in February

Australia’s exports are expected to rebound. Recently, several vital resource projects began production and exporting. First iron ore shipment from Roy Hill project was shipped to South Korea in December. Also, shipments of LNG from Curtis Island to China started in January, while LNG shipments from Gorgon project began in February. Furthermore, Australia’s exports are likely to rebound further after declining 4.4% m/m in December and 1.1% in January, according to Societe Generale.

Additionally, iron ore prices increased sharply in February by 12% m/m in USD terms and 10% in AUD terms. Also, coal prices also increased in February from the prior month. Therefore, export values is likely to increase strongly in February, added Societe Generale. Meanwhile, imports are likely to have grown slightly in the month after declining for four consecutive months. Demand for import is expected to be weak due to decline of AUD in the past two years, and steep drop in resource investment, noted Societe Generale.