Chinese demand for iron ore boosted Australia's exports by 4.4 percent in the December quarter, but the weakness of the Australian dollar also raised the cost of importing goods.
Australia's metal mines and scrap metal export price index rose 9 percent since September and rose 17.8 percent in the year to the end of December, according to the latest data released today by Australia's Bureau of Statistics (ABS).
Gas exports also rose 8.6 percent in the December quarter, surging to 54.6 percent for the full year. Coal exports rose 3.7 percent in the fourth quarter and rose 16 percent for the full year.
The country's overall export price index climbed 15.7% last year.
However, the December quarter import price index also slightly increased 0.5 percent, mainly because of the depreciation of the Australian dollar, imports of telecommunications products and sound systems, as well as metal manufactures were most affected.
Import prices rose 1.9 percent in the September quarter and rose 7.8 percent for the year, driven mainly by imported gasoline.
Earlier this month, the Bureau of Statistics reported that Australia's trade surplus fell 4.4 percent to A $19.3 billion in November.
Fortescue Metals Group, Australia's third-largest iron ore producer, also reported a 5 percent increase in iron ore exports in the second quarter of fiscal year 2018 / 19. While the mining industry is concerned that China's slowing economic will affect the purchase of Australian iron ore, the growth in Fortescue Metals Group's new exports of medium-grade iron ore has helped to boost its iron ore production.
It exported 42.5 million tons of iron ore in December last year, up 2 million tons from 40.5 million tons in the same period in 2017.
When the Fortescue reported its results yesterday, it maintained its forecast of one hundred and sixty four million nine hundred and ninety nine thousand nine hundred and ninety nine to one hundred and seventy two million nine hundred and ninety nine thousand nine hundred and ninety nine tonnes of iron ore exports for the fiscal year 2018-19, as previously estimated in its performance guidelines.
