In the financial year 2016-17, Australia’s earnings from resource and energy exports are forecast to reach A$176 billion, with a year-on-year increase of 12 percent, while the value of Australia’s iron ore exports is forecast to total A$53.57 billion in FY 2016-17, with a year-on-year increase of 12.2 percent, according to a report by the Australian Government Department of Industry and Science.
The iron ore spot price (FOB Australia) unexpectedly rallied through July and August to average $54/mt, up 14 per cent year-on-year. As a result, the forecast has been revised up, to average $48.5/mt for 2016 as a whole compared to the previous forecast of $44.2/mt. However, the price is still expected to decline, and the forecast of $45/mt in 2017 remains unchanged.
According to the report, in 2017 exports of Australian iron ore are forecast to grow to 877 million mt.