Australia’s resource and energy export for the 2022-23 financial year (FY23) were set to hit a record of $459 billion, revised upwards from $308 billion.
A detailed look at the commodities reveals that Australia can witness strong growth in revenue from exports of thermal coal used in power plants as well as liquefied natural gas (LNG) for the year ending June 2023, according to the quarterly report of Department of Industry, Science and Resources.
The iron ore which has mostly been a leading export earner, projected to deliver $113 billion of export revenue in FY23, has been overshadowed by coal this time.
Australia’s total coal exports, including metallurgical coal and thermal coal, were now expected to earn $132 billion in FY23. Thermal coal’s contribution likely to beat expectations, with anticipation of it rising from $46 billion to $75 billion between FY22 and FY23.
Chinese economy, which had been witnessing regular outbreaks of COVID-19, went through a challenging period last year. The steel and iron ore demand had also slackened because of the falling construction activity. China relaxing its zero Covid strategy by the end of the year has raised optimism of a boost to its economy.
Gold exports have also been growing well, with national shipments anticipated to bring in $27 billion in 2022/2023. As per Office of the Chief Economist, Australia’s gold exports increased by 23 percent year-on-year to $6.7 billion in the September quarter 2022. The 12% increase in export volumes was supported by higher Australian dollar and 3.7 percent annual rise in production.
With the increasing popularity of EVs, the demand for mineral used in batteries has also jumped. Lithium exports are set to earn $16 billion in FY23, from $5 billion a year earlier, which would see it become Australia’s sixth largest resource earner.
Though, a silver lining for Australian commodity export may not be immediately visible, resilient Asia and strength of the Country’s resource industry is likely to sustain the growth.
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