HIGHER prices for steel-making raw materials and thermal coal, not to mentioned increased LNG export volumes, are tipped to see Australia’s resource and energy export earnings 30% in 2016-17, to a record $204 billion.
That’s the view of Mark Cully, chief economist for the Department of Industry, Innovation and Science.
Mr Cully said continued growth in demand from China’s steel sector, as well as disruptions to the supply of a number of resource commodities, had boosted prices.
“The world economy appears to be picking up speed.
“At the same time, significant investment in Australia’s productive capacity has supported strong growth in LNG export volumes,” Mr Cully said in the foreword to the Department’s quarterly report.
“Unfortunately, the high prices that are expected to bolster Australia’s resources and energy export earnings in 2016–17 are not expected to last.”
Mr Cully said the combination of slowing demand growth from China’s steel sector and increased global supplies, were expected to lower export values during 2017–18.
“However, the production phase of the mining boom will continue, with export volumes forecast to increase in each of Australia’s top five resource and energy commodities in 2017–18,” he said.
“Most significantly, LNG export volumes are forecast to grow a further 28% in 2017–18.”