Australia increases iron ore exports and output in Q2

In the second quarter of 2010, Australian iron ore output rose by 1.7 percent as compared to the first quarter of 2010, totaling 105.2 million metric tons, reflecting higher output from major producers in the iron ore-rich Pilbara region of Western Australia, including Rio Tinto, BHP Billiton and Fortescue Metals Group, according to a report released by the Australian Bureau of Agricultural and Resource Economics (ABARE).  Meanwhile, as compared to the second quarter of 2009, the country's iron ore production rose 6.44 percent in the given period.
 
Reflecting higher production, in the second quarter of this year the country's iron ore export volumes improved also by 5.35 percent quarter on quarter, amounting to 99.62 million metric tons - up 2.08 percent year on year. In 2010, Australia's average export price for iron ore started to rise, beginning from January at US$70/mt, reaching its peak at US$123/mt in May. In June, the average export price of iron ore regressed back to US$118/mt, which was, however, 65.78 percent higher as compared to June 2009. As a result of the increased export price, in the second quarter export revenues increased by 61.12 percent quarter on quarter to AU$12.57 billion (US$11.74 billion), up 78.22 percent year on year.
 
On the other hand, in the second quarter of 2010, Australian metallurgical coal production rose 12.58 percent quarter on quarter, reflecting higher production of metallurgical coal in Queensland mines, and was up 2.65 percent year on year, amounting to 116.81 million metric tons. In the period in question, the country's metallurgical coal exports increased also by 23.04 percent quarter on quarter to 43.59 million metric tons, while the year-on-year increase was recorded at 31.92 percent. On quarter-on-quarter basis, the country's revenues from metallurgical coal exports climbed by 70.07 percent, reaching AU$8.48 billion (US$7.93 billion), up 35.94 percent year on year. In the period in question, the average export price of high quality metallurgical coal stood at US$198/mt, rising by 31.24 percent as compared to the previous quarter and up 4.5 percent year on year.