Australian resources drive rise in export prices

The Export Price Index rose 5.6 per cent in the December quarter 2023, and fell 4.8 per cent during the year, according to data released today by the Australian Bureau of Statistics (ABS).

Driving the quarterly rise were prices for Australia’s resources. Non-rural exports rose 6.6 per cent in the December quarter 2023. This growth was caused primarily by strong price increases for iron ore and metallurgical coal. Smaller rises in energy exports including petroleum and liquified natural gas, also supported the lift.

Michelle Marquardt, ABS head of prices statistics, said: “Iron ore prices rose this quarter as improved industrial demand from China led steel manufacturers to increase production. This prompted greater restocking demand, driving a 9.7 per cent rise for metalliferous ores and metal scrap this quarter.”

“The impact of increased global steel output was also seen in prices for metallurgical coal, which is an important input into steel production. Continuing supply issues added to those price pressures resulting in an increase of 11.6 per cent in the prices for coal, coke and briquettes in the December quarter 2023, after falling for five consecutive quarters,” Ms Marquardt said.

Offsetting the price rise in non-rural exports was a fall in rural export prices, down 0.4 per cent for the quarter.

“This is the fourth consecutive quarter of falls for rural exports, leading to a large annual fall of 18.4 per cent. Contributing to the price fall this quarter were meat and meat preparations falling 1.0 per cent and live animal exports falling 7.8 per cent,” Ms Marquardt said.

The impact of the higher petroleum prices was seen in the Import Price Index, which rose 1.1 per cent in the December quarter 2023 and fell 3.1 per cent during the year.

“Despite prices falling in November and December, high prices early in the quarter following supply cuts by OPEC+ drove a small quarterly rise for petroleum imports of 1.4 per cent,” Ms Marquardt said.

Further adding to the growth in import prices were road vehicles, rising 2.7 per cent for the quarter.

“Increases in manufacturing costs for cars are being passed through to importers in a high demand environment. Prices rose this quarter alongside the continued depreciation of the Australian Dollar,” Ms Marquardt said.