Tropical cyclones and iron ore disruptions on Australia’s west coast failed to put a real damper on January’s export data, according to the ABS.
Tropical cyclones and iron ore disruptions on Australia’s west coast failed to put a real damper on January’s export data, according to the ABS.
The latest trade report reveals a $696 million upswing in Australia’s balance on goods; a measurement that shows how Australia’s import and export activity changes month to month.
While imports fell $103 million during the first month of the year, it was an uptick in non-monetary gold credits that lifted Australia’s exports into the black and grew January’s international trade balance to $5.6 billion.
The strength of the export data surprised analysts, who were expecting a far drearier report in the wake of tropical cyclone Sean, which wreaked havoc on Western Australia’s iron ore operations and shuttered the nation’s largest export hub in Port Hedland in January.
In light of the disruptions, Commbank expected the export data to throw off the trade balance.
“While commodity prices were a little stronger, there is risk the goods balance disappoints given the disruptions,” analysts said today ahead ABS release.
“We expect the trade balance to print at five billion dollars, with softer imports offsetting risks around export values.”
In reality, Australia’s strong bullion exports did the heavy lifting, offsetting a 4 per cent drop in metal ore and mineral exports during the month.
Meanwhile, coal exports had the worst showing among the nation’s non-rural goods, coming in nearly 14 per cent lower than the December metrics.
Still, the trade data isn’t out of the woods just yet. Rio Tinto’s Dampier port has only just resumed operations, meaning February’s trade balance could also be hit by export headwinds.
The ABS expects to release its next data rundown on April 3.
