COAL EXPORTS HOLD UP
Exports of thermal coal, used to generate power, are
expected at 195 million tonnes in 2027-28, up from 182 million
in the current year, although the price is forecast to slide to
$103 a tonne from $313.
Coking coal shipments are expected to rise to 172 million
tonnes from 164 million, although the price is forecast to drop
to $185 a tonne from $296.
Exports of liquefied natural gas (LNG) are expected to
remain largely steady with the 80 million tonnes in 2027-28
being little changed from the 82 million in 2022-23.
However, the price is expected to drop to A$13 a gigajoule
from A$21 in the current fiscal year.
Australia's most valuable commodity export, iron ore, is
also not spared expectations of lower prices, with a forecast
for $69 a tonne in 2027-28 being down from the current $97.
Iron ore export volumes are tipped to rise to 989 million
tonnes by 2027-28 from the 887 million forecast for 2022-23.
Overall, the Australian government is painting a strong
outlook for commodity export volumes, but a soft outcome for
prices, even for the energy transition metals.
While proponents of the energy transition will be heartened
by the rising investment and volumes in metals such as lithium,
the expectation that fossil fuel exports will remain around
current levels over the next five years will be disappointing.
The opinions expressed here are those of the author, a columnist
for Reuters.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC-Forecast export earnings for selected Australian
commodities: ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Editing by Sonali Paul)
(The opinions expressed here are those of the author, a
columnist for Reuters.)
By Clyde Russell
LAUNCESTON, Australia, April 4 (Reuters) - Leading
commodity exporter Australia expects rising shipments of new
energy metals in coming years, but in a blow to global climate
change goals the government still forecasts steady volumes of
fossil fuels such as coal and natural gas.
Earnings from natural resource exports will reach a record
A$464.3 billion ($315.3 billion) in the 2022-23 fiscal year that
ends on June 30, the Office of the Chief Economist in the
Department of Industry, Science and Resources said in its latest
quarterly report released on April 3.
This is up from the previous record of A$421.6 billion in
the 2021-22 year, but the government's commodity forecaster
doesn't expect the elevated earnings to persist as the impact of
Russia's invasion of Ukraine fades away.
Australia is the world's largest exporter of iron ore,
coking coal, liquefied natural gas (LNG) and lithium, while it
ranks second in thermal coal and third in gold and in copper
ores and concentrates.
By the 2027-28 fiscal year earnings from commodities will
drop to A$335.9 billion, implying a compound annual decline of
3.7% from the current year.
The driving factor behind the lower earnings forecast is
moderating prices, firstly as the world economy slows and
secondly as more global supply is added in key commodities.
The government forecaster does expect Australia to export
rising volumes of new energy metals, including lithium, nickel,
copper and zinc.
But it also expects the prices for most of these metals to
decline over the forecast period.
Lithium export volumes are expected to rise to 4,462 tonnes
by 2027-28 from 3,080 in 2022-23, but the price is slated to
fall to $2,700 a tonne from $4,104 in the current fiscal year.
Nickel exports are expected to lift to 215,000 tonnes by
2027-28 from 164,000 in the current year, but the price will
drop to $21,313 a tonne from $24,414.
Copper shipments will rise to 970,000 tonnes in 2027-28 from
873,000 this year, and the price will defy the declining trend,
rising to $9,954 a tonne from the current year's $8,406.
While the report shows that Australia will produce more of
the materials needed for the energy transition, it also shows
that the country will still export large volumes of fossil
fuels, even if the expected prices for the polluting fuels are
expected to drop sharply.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.