Plummeting iron ore prices on back of China's property crisis could wipe $3b from federal budget
7 months, 1 week ago

Plummeting iron ore prices on back of China's property crisis could wipe $3b from federal budget

ABC  

Plummeting iron ore prices could cost the federal government $3 billion in revenue, which is likely to push the budget further into deficit this financial year. Labor facing prospect of less revenue The Treasury often makes conservative forecasts on iron ore prices, which has meant the federal government has regularly received more revenue than it planned for. But now, with iron ore prices falling faster than expected, Labor faces the prospect of less revenue and a bigger deficit as it heads into an election year in 2025. But Australia's iron ore giants are among the more efficient operations globally, which means low iron ore prices are likely to squeeze smaller players before they hit the likes of Rio Tinto, BHP and Fortescue.

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History of this topic

Tracking China's economy and commodity needs is getting harder
1 week, 3 days ago

Tracking China's economy and commodity needs is getting harder

The Hindu  

Gavin Maguire Until 2020, commodities traders and economists needed only a handful of data points to gauge the health and direction of China's economy, and the volumes of raw materials needed to fuel the world's largest trading partner and goods producer. Old timers In the good old days, commodity traders needed only a quick glance at China's imports of crude …

Massive Simandou mine can end Australia’s golden iron ore age, or start new one: Russell
1 month ago

Massive Simandou mine can end Australia’s golden iron ore age, or start new one: Russell

Live Mint  

By Clyde Russell LAUNCESTON, Australia, Feb 25 - The term gamechanger is often over used enough to be rendered meaningless, but the huge Simandou mine in the West African country of Guinea is going to be just that as its start up is set to rock the seaborne iron ore market. But Simandou is more than a technical marvel, as …

Structural shifts or price moves? China's bifurcated commodity imports
2 months, 2 weeks ago

Structural shifts or price moves? China's bifurcated commodity imports

The Hindu  

Clyde Russell China's imports of major commodities in 2024 presented a mixed bag, with record volumes of iron ore, coal and natural gas, but weakness in crude oil. It's also the case that China's steel mills weren't buying more iron ore because they were making more steel, with official data showing that crude steel output in the first 11 months …

A commodity slump has run a bulldozer over our miners, and our export income
6 months, 2 weeks ago

A commodity slump has run a bulldozer over our miners, and our export income

ABC  

Chris Ellison became an overnight celebrity a few weeks ago, splashed across newspaper websites across the globe. Then came the 80 per cent crash in lithium prices that rocked the industry, kyboshing takeover plans, new mine construction and sending a chill through the federal government's plans for a new industry processing critical minerals. More recently, iron ore prices have begun …

Iron ore to China: Crushing blow to Australia's economy as our biggest export halves in value
6 months, 2 weeks ago

Iron ore to China: Crushing blow to Australia's economy as our biggest export halves in value

Daily Mail  

The price of Australia's biggest export is tipped to keep plunging - depriving governments of badly needed revenue during an economic slowdown. AMP deputy chief economist Diana Mousina said iron ore prices could fall further if Chinese investors on the share market became nervous, with poorer risk sentiment affecting key commodity prices. The price of Australia's biggest export is tipped …

The major China decision that is set to dramatically hurt Australia - and why the Albanese government is seriously worried
7 months, 1 week ago

The major China decision that is set to dramatically hurt Australia - and why the Albanese government is seriously worried

Daily Mail  

China's steel industry crisis and a crackdown on its debt-ridden property developers will deliver a powerful blow to the Australian economy, costing the government $3billion in Budget revenue. Treasurer Jim Chalmers has released new analysis on the weakening Chinese demand for iron ore, which will significantly reduce the value of Australia's biggest export and thereby reduce mining company tax receipts …

China’s steel industry in trouble as property market woes hit demand
7 months, 2 weeks ago

China’s steel industry in trouble as property market woes hit demand

Live Mint  

China's steel industry is facing trouble as its falling property market has affected demand, Bloomberg reported on Wednesday, August 16. China's steel demand concerns: According to Kallanish, cited in the report, China's property market slowdown caused steel demand from construction activities to fall 10 per cent this year. “Steel demand is really poor,” said Wei Ying, an analyst at China …

Iron Ore Steadies With Japan’s Dovish Signals, Supplies in Focus
7 months, 3 weeks ago

Iron Ore Steadies With Japan’s Dovish Signals, Supplies in Focus

Live Mint  

Iron ore steadied after paring earlier losses as investors weighed dovish signals from Japan regarding potential monetary tightening, while signs of increased supplies of the raw material continued to cloud the market outlook. “Global iron ore shipments have increased slightly, with supply from Australia, Brazil and other non-mainstream sources staying high,” Huatai Futures Co. said in a note. According to …

As Beijing quietly heads into economic oblivion while Washington lights up, expect tougher times ahead
8 months ago

As Beijing quietly heads into economic oblivion while Washington lights up, expect tougher times ahead

ABC  

As the world looks on entranced at the drama playing out in Washington, an equally significant but far less visible event has been unfolding in our very own time zone. China's trade trap US presidential hopeful Donald Trump points to China's trade surplus as a deliberate attempt by Beijing to take advantage of Americans, to create a common enemy. China's …

Australia's iron ore miners face falling Chinese demand
1 year ago

Australia's iron ore miners face falling Chinese demand

The Hindu  

Australia’s vast iron ore mining sector is facing stark choices as its biggest customer China has likely hit a peak in its steel production and global pressures mount to decarbonise one the world’s most polluting industries. China’s rise since the late 90s allowed Australia’s iron ore miners to massively ramp up output, reap economies of scale and become hugely profitable. …

How the collapse of Chinese property giant Evergrande could have massive consequences for Australia: Here's what you need to know
1 year, 2 months ago

How the collapse of Chinese property giant Evergrande could have massive consequences for Australia: Here's what you need to know

Daily Mail  

Chinese property giant Evergrande has plunged into liquidation, potentially jeopardising demand for Australian iron ore used to make steel. A glut of apartment towers saw China's second biggest apartment builder incur debts of more than $400billion, sparking concerns from the Communist Party government about its solvency. Chinese property giant Evergrande has plunged into liquidation, potentially jeopardising demand for Australian iron …

How the China rift sparked a new resource boom
1 year, 9 months ago

How the China rift sparked a new resource boom

ABC  

Out with the old and in with the new. US company to double production at WA refinery Photo shows Kemerton plant One of the world's biggest lithium companies is the latest looking to expand operations in Western Australia, amid a "bright" future. It controlled 60 per cent of the world's lithium mining, 77 per cent of battery-cell capacity and 60 …

Australia’s exports to China hit record highs as barriers ease
1 year, 10 months ago

Australia’s exports to China hit record highs as barriers ease

Al Jazeera  

Exports of Australian goods to China hit $12.71bn in March, up nearly one-third from year earlier. Australia’s exports to China surged to record highs in March as the Asian giant sucked in more iron for its steel industry and lowered barriers to thermal coal shipments amid thawing diplomatic relations. Data released on Thursday showed exports of Australian goods to China …

China's iron ore traders seek low-cost Indian supplies as steel margins slump
2 years, 4 months ago

China's iron ore traders seek low-cost Indian supplies as steel margins slump

The Hindu  

China is set to snap up significant volumes of low-grade Indian iron ore in coming weeks, as Chinese steelmakers seek out cheaper raw materials to cope with meagre profits, said traders and analysts. "We are looking to resume buying from India after six months of suspension," said a Shanghai-based iron ore trader who booked some cargoes of Indian pellets for …

China's demand for Australian iron ore stalls, sending the price for our biggest earner spiralling
2 years, 4 months ago

China's demand for Australian iron ore stalls, sending the price for our biggest earner spiralling

ABC  

Australian miners unearth more iron ore than anywhere else in the world — but they want to increase that. Key points: BHP, Rio Tinto and FMG have all launched new iron ore mines in the past 18 months The iron ore price has plummeted from about US$240 a tonne last year, to about US$80 now Experts predict we're nudging the …

Steel sector to see limited impact from external woes
2 years, 11 months ago

Steel sector to see limited impact from external woes

China Daily  

Employees check steel tubes at a production facility in Maanshan, Anhui province, in March. Amid price hikes, nation's stabilizing moves to keep production on track Adding more strain to global steel supplies and price inflation of raw materials, the Russia-Ukraine conflict has increased China's steel production costs, yet experts said as domestic steel market expectations level off amid Chinese authorities' …

How China's hard landing could expose Australia as a one-trick export pony hitched to one wagon
3 years, 4 months ago

How China's hard landing could expose Australia as a one-trick export pony hitched to one wagon

ABC  

We'll never know for sure how he did it. It also would have lit the fuse on a debt time bomb that has engulfed other major developers and plunged China's $US5 trillion property sector into a crisis that threatens to spill over into the Middle Kingdom's financial system and the global economy. Since May, iron ore prices have slumped 60 …

How Chinese property giant Evergrande's debacle will affect you
3 years, 5 months ago

How Chinese property giant Evergrande's debacle will affect you

Daily Mail  

Chinese property giant Evergrande's debt woes are now expected to dramatically slow down growth in the world's second biggest economy. Chinese property giant Evergrande's debt woes are now expected to dramatically slow down growth in the world's second biggest economy Why Evergrande's woes hurt Australia Evergrande is China's second biggest property developer Its debt problems risk causing a broader Chinese …

Record iron ore prices boost Australia's economy, but will the China trade war end the boom?
3 years, 10 months ago

Record iron ore prices boost Australia's economy, but will the China trade war end the boom?

ABC  

Driving along the Great Northern Highway through Western Australia's remote Pilbara region at sunrise is a unique experience. "Our forecast for iron ore is to come back to about $US110 a tonne by the end of this year," CBA's mining and energy economist Vivek Dhar says. Capital Economics senior economist Marcel Thieliant recently published a note saying: "As China's property …

WA Budget surplus set to reach record $5 billion as iron ore price shields coffers from COVID hit
3 years, 10 months ago

WA Budget surplus set to reach record $5 billion as iron ore price shields coffers from COVID hit

ABC  

West Australian Premier Mark McGowan is poised to deliver a record budget surplus of about $5 billion at a time when governments across the world are awash with debt and deficit. Key points: A rally in iron ore prices since March could deliver WA an extra $2 billion The surplus is more good luck than good management, the opposition says …

Global construction boom sending timber and iron ore prices through the roof
3 years, 10 months ago

Global construction boom sending timber and iron ore prices through the roof

ABC  

There is a construction boom taking place around the world, as governments look to build themselves out of the pandemic's economic woes. Key points: Iron ore and Lumber Futures hit record highs this week Timber supplies in Australia are very low and imports are falling The federal government's HomeBuilder Scheme is said to be putting 'extreme pressures' on building supplies …

Australia plans big defense and security investments
3 years, 10 months ago

Australia plans big defense and security investments

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Australian government released a …

Iron ore is saving Australia’s trade with China. How long can it last?
3 years, 10 months ago

Iron ore is saving Australia’s trade with China. How long can it last?

CNN  

Hong Kong CNN Business — Wine and wheat. Ian Waldie/Bloomberg/Getty Images The mining boom For more than two decades, China and Australia have helped rapidly grow each others’ economies through a soaring trade in raw resources, especially iron ore and coal. By 2019, almost two-thirds of China’s iron ore came from Australia, more than it imported from Brazil, South Africa …

Australian exports booming despite trade restrictions from China
4 years, 2 months ago

Australian exports booming despite trade restrictions from China

ABC  

Trade with China is crucial — it's Australia's largest trading partner. Shortly after Australia showed its support for an independent investigation into the origins and early handling of the pandemic, China began imposing trade restrictions on Australian exports. "The increase in metalliferous ores to China was driven by iron ore, up $1,951m to $9,865m, accounting for 79% of Australian iron …

China still needs Australia to power its economic recovery
4 years, 2 months ago

China still needs Australia to power its economic recovery

CNN  

Hong Kong CNN Business — China and Australia spent much of last year in a tense standoff on trade. But as the recovery of the world’s second largest economygathers pace, China needs more iron ore and Australia is still its main supplier. “China’s impressive industrial recovery has stoked demand for steel production, and Australia is a major supplier of steel …

Market experts say Australian shares will rebound in 2021, thanks to COVID-19 vaccines
4 years, 2 months ago

Market experts say Australian shares will rebound in 2021, thanks to COVID-19 vaccines

ABC  

As that old saying goes, "hindsight is 20/20", and it certainly applies to the share market every year. "The reopening of the global economy ought to lift energy demand and benefit what's generally been an underperforming sector for most of this year." NAB, Westpac, Santos, Woodside Petroleum, Telstra and CIMIC Group were some of the stocks Mr Sidney said he …

China's trade war with Australia backfiring with iron ore prices to stay high for TWO more years
4 years, 3 months ago

China's trade war with Australia backfiring with iron ore prices to stay high for TWO more years

Daily Mail  

China's trade sanctions are failing to cripple Australia's economy, as Beijing's insatiable demand for iron ore keeps prices at elevated levels for years to come. Scroll down for video China's trade sanctions against Australia are failing to bite with iron ore prices expected to remain at elevated levels for at least two more years. Westpac's iron ore spot price forecasts …

China's trade war is helping Australia with iron ore prices now expected to stay higher longer
4 years, 3 months ago

China's trade war is helping Australia with iron ore prices now expected to stay higher longer

Daily Mail  

China's trade war against Australia is failing with the federal government expecting iron ore prices to stay at elevated levels for longer. Since June, iron ore prices have climbed steadily from $US80, with China sourcing 60 per cent of its iron ore from Australia as Brazil struggles to meet demand. Treasury's Mid-Year Economic and Fiscal Outlook is expecting iron ore …

Stan Grant, Stephen Dziedzic and Bang Xiao answer your questions about the Australia-China relationship
4 years, 3 months ago

Stan Grant, Stephen Dziedzic and Bang Xiao answer your questions about the Australia-China relationship

ABC  

There is really only one Australian export which China really needs, and that’s iron ore.* More than 60 per cent of China’s iron ore imports come from Australia and its other major supplier — Brazil — is in a world of trouble because of COVID-19 in its mines and a tailing dam collapse. So if we suddenly stopped sending them …

Mothballed NT iron ore mines reopen amid soaring demand for steel in China
4 years, 3 months ago

Mothballed NT iron ore mines reopen amid soaring demand for steel in China

ABC  

Northern Territory iron ore miners are making a comeback as Chinese demand for steel soars and prices sit at a seven-year high. Key points: Two mothballed mines in the NT have reopened amid 7-year high prices The reopening of Roper Bar mine, 600 kilometres south east of Darwin, will create 250 jobs An iron ore market analyst says high prices …

Why iron ore has been out of bounds in China's trade war with Australia — for now
4 years, 6 months ago

Why iron ore has been out of bounds in China's trade war with Australia — for now

ABC  

You never know what you might find until you look hard enough. Australia has officially been on the nose with the Beijing leadership for several years, ever since former Prime Minister Malcolm Turnbull called out China's attempted interference in the Australian parliament and Beijing's steady incursions into our universities. Around 80 per cent of Australia's iron ore exports are sent …

Australian dollar surges on iron ore and economic optimism, even as recession looms
4 years, 9 months ago

Australian dollar surges on iron ore and economic optimism, even as recession looms

ABC  

Australia's currency has risen sharply in recent days. Key points: The Australian dollar passed through 68 US cents today, up 24 per cent from its mid-March low The Reserve Bank kept interest rates on hold at a record low 0.25 per cent but they are higher than US, British, EU and Japanese rates Australia has posted another current account surplus, …

Iron ore price surge set to boost WA budget amid Brazil coronavirus crisis and Chinese demand
4 years, 10 months ago

Iron ore price surge set to boost WA budget amid Brazil coronavirus crisis and Chinese demand

ABC  

The tightening grip of the coronavirus pandemic on Brazil could help Western Australia's ability to weather the economic storm created by COVID-19. Key points: The iron ore price is up about 30 per cent as Chinese demand grows The iron ore price is up about 30 per cent as Chinese demand grows Higher mining royalty revenue is expected to fortify …

Iron ore boom delivers a record $5.7b trade surplus
5 years, 8 months ago

Iron ore boom delivers a record $5.7b trade surplus

ABC  

Federal Treasurer Josh Frydenberg will be rubbing his hands with glee after another outsized trade surplus, courtesy of Australia's iron ore miners, landed on his doorstep. Key points: Australia has recorded its 17th successive monthly trade surplus after years of heavy deficits The record monthly surplus of $5.7b saw record exports to both trade war combatants, China and the US …

With rate cuts and the real risk of a recession ahead, can Australia's economic run of luck continue?
5 years, 9 months ago

With rate cuts and the real risk of a recession ahead, can Australia's economic run of luck continue?

ABC  

John Howard famously declared during his 2004 re-election campaign that interest rates would always be lower under a Coalition government. Given its habit of shifting in 0.25 percentage point increments, when the Reserve Bank lowers rates tomorrow afternoon, it will be firing off one of the last six shots remaining in the chamber. Australia's iron ore exports have been one …

Australian dollar jumps on strong Chinese rebound
5 years, 11 months ago

Australian dollar jumps on strong Chinese rebound

ABC  

The Australian dollar has jumped sharply on better than expected Chinese economic data. Key points: A strong rebound in China's economy has been underpinned by banks lending more Surprisingly strong industrial production and stable house prices are seen as positives for commodity markets Despite strong Chinese data, mining stocks fell as Brazil appears set to resume bulk iron ore exports …

China heads for a trade recession as exports crash 20pc, and that's bad news for Australia
6 years ago

China heads for a trade recession as exports crash 20pc, and that's bad news for Australia

ABC  

China's export effort appears to have finally cracked under sustained pressure from US tariffs and a slowdown in global trade Key points: China's trade surplus with the US halved as tougher tariffs took their toll Weak imports point to a domestic economy cooling rapidly China's appetite for iron ore hit a 10 month low Exports in US dollar terms fell …

Iron ore prices are surging and some analysts are tipping it will hit levels not seen since 2014
6 years, 1 month ago

Iron ore prices are surging and some analysts are tipping it will hit levels not seen since 2014

ABC  

Iron ore prices could be heading back to $US100 a tonne, in the short term at least, according to the Commonwealth Bank. Key points: Iron ore prices are heading back to levels last seen in the 2014 boom A combination of tight supply and demand from China and India could see prices hold at around $US80/tonne A $US10/tonne rise adds …

Fortescue cuts iron ore price guidance amid trade war fears
7 years ago

Fortescue cuts iron ore price guidance amid trade war fears

ABC  

Miner Fortescue Metals is expecting to receive a lower price for its iron ore as conditions in China remain unfavourable and global trade tensions continue. Fortescue iron ore prices v benchmark iron ore spot prices Today it said the recovery had been "slower than anticipated" due to subdued construction activity and the extension of some production restrictions in China, as …

The iron ore rollercoaster: Price spike provides little relief to WA's budget woes
7 years, 6 months ago

The iron ore rollercoaster: Price spike provides little relief to WA's budget woes

ABC  

The iron ore price spike in recent months has delivered little for state coffers, with the Government set to reveal a $1.7 billion royalty revenue hit over the forward estimates when it hands down its first budget next week. While forecasts have taken a hit since February's pre-election economic update, they remain stronger than what the Barnett Government predicted in …

China trade disappoints with imports and exports both slowing in July
7 years, 7 months ago

China trade disappoints with imports and exports both slowing in July

ABC  

Chinese imports and exports slowed unexpectedly in July, casting doubts about the vigour of its recent economic performance. Key points: China's trade surplus widened to $US46.7 billion despite slowing imports and exports Weaker than expected figures dragged down regional exchanges and commodity prices Iron ore imports fell 8.9pc in July pointing to a slowing demand While imports grew for the …

Chinese factory activity falls the first time in almost a year
7 years, 9 months ago

Chinese factory activity falls the first time in almost a year

ABC  

China's factories slipped back into contractionary territory in May as tighter credit conditions take effect and more workers are laid off. Operating conditions for manufacturers in the world's second largest economy deteriorated for the first time in almost a year, according to new data from the Caixin purchasing managers' index. Iron ore and coal prices tumble again Capital Economics Julian …

Iron ore and coal futures surge points to good times for Aussie miners
8 years, 4 months ago

Iron ore and coal futures surge points to good times for Aussie miners

ABC  

Iron ore and coal prices on a key Chinese futures market have surged again as traders take a bet on demand building well into next year. Key points: Iron ore futures up 6 per cent today to $US90.20 a tonne Indicates traders believe prices will be higher in three-to-six months Impact of Trump administration "uncertain" in long term given steel …

Iron ore price surge to add $2 billion to West Australian budget
8 years, 4 months ago

Iron ore price surge to add $2 billion to West Australian budget

ABC  

The surging iron ore price will add $2 billion to the Western Australian budget's bottom line if the higher than estimated prices continue, easing pressure on record debt and deficit levels, Treasurer Mike Nahan says. Peter Strachan from StockAnalysis warned higher than anticipated demand from China, as it boosted stockpiles, was the main factor driving up iron ore prices from …

China crude steel output rises slightly in Jan-Sept
8 years, 5 months ago

China crude steel output rises slightly in Jan-Sept

China Daily  

BEIJING - China's crude steel output rose slightly in the first three quarters this year, data from the country's top economic planner showed Thursday. Crude steel production increased 0.4 percent year on year to 603.78 million tonnes in the January-September period, compared with a 2.1-percent decrease in the same period last year, according to the National Development and Reform Commission. …

Surging commodity imports 'do not point to' economic rebound
8 years, 5 months ago

Surging commodity imports 'do not point to' economic rebound

China Daily  

The surge in China's iron ore, crude oil and coal imports in the first nine months does not indicate that China's economy has rebounded, according to a spokesperson of the customs administration on Thursday at a news briefing. The total iron ore imports in the first nine months were 763 million metric tons, up 9.13 percent year-on-year. The statistics of …

Chinese steel plants bounce back after destocking
8 years, 8 months ago

Chinese steel plants bounce back after destocking

China Daily  

Workers load steel products at a logistics park in Yichang, Hubei province. BEIJING - China's large steel plants saw improved profits and narrowed losses in the first five months of this year thanks to their destocking efforts, according to a national steel association. Major iron and steel enterprises raked in 8.736 billion yuan in the Jan-May period, up over 700 …

Chinese govt discourages iron, steel exports amid lackluster demand
8 years, 8 months ago

Chinese govt discourages iron, steel exports amid lackluster demand

China Daily  

Workers load steel products at a logistics park in Yichang, Hubei province. The Chinese government has been discouraging iron and steel exports in the midst of lackluster demand in the global market, the Ministry of Commerce said on Tuesday. In the first five months of the year, China's exports of iron and steel increased by 6.4 percent year-on-year, stirring further …

Iron ore, steel rise on signs of property recovery in China
8 years, 10 months ago

Iron ore, steel rise on signs of property recovery in China

Live Mint  

Melbourne: Steel and iron ore futures in China rose on Monday, taking a string of softer economic data in their stride, supported by a stabilising property market and improving physical demand to recover from the biggest weekly slide since 2009. Chinese banks had also sharply cut back new lending in April after a record first-quarter credit spree, reinforcing views that …

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