Earnings to rise 22%

COMMODITY exports from Australia are expected to rise to over $A120 billion in 2005-06, according to the December issue of Australian Commodities released by government forecaster ABARE.

Staff Reporter

The total value of minerals and energy exports will jump 32% to $A90.3 billion next year with energy exports to rise by 42%, reflecting strong growth in crude oil and LNG exports.

 

The value of crude oil exports is forecast to rise by 34% to $A8.5 billion, boosted by significantly higher oil prices and higher export volumes.

 

The value of iron ore exports will go up 72% to nearly $A14 billion while the value of metallurgical coal exports is set to increase by 64% to $A17.7 billion, due to substantial increases in negotiated contract prices this year.

 

The price outlook across minerals and energy commodities is mixed. Oil, copper and nickel prices are expected to ease, while prices of other commodities, such as iron ore, zinc and aluminium are expected to firm, reflecting only moderate supply growth.

 

ABARE said growth in world demand for most of the major minerals and energy commodities is expected to ease from current levels in 2006, reflecting weaker assumed growth in global industrial activity.

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