Australian iron ore exports down four percent in Q1 2010 over previous quarter

In the first quarter of 2010, Australian iron ore output declined by four percent lower as compared to the last quarter of 2009, totaling 103.45 million metric tons, partially due to the modest declines in Rio Tinto's production, which was restricted by the availability of certain items of production equipment, according to a report released by the Australian Bureau of Agricultural and Resource Economics (ABARE). In addition, BHP Billiton's production was negatively affected by weather-related disruptions and activities associated with the recently completed Rapid Growth Project 4. Meanwhile, as compared to the first quarter of 2009, the country's iron ore production rose 29 percent in the given period.
 
Reflecting lower production, in the first quarter this year the country's iron ore export volumes declined also by four percent quarter on quarter, amounting to 94 million metric tons. Higher prices for iron ore sold on the spot market more than offset a decline in export volumes. As a result, export values increased by three percent to AU$7 billion. Average iron ore and pellet export prices in the given period rose seven percent quarter on quarter.
 
On the other hand, in the January-March period of 2010, Australian metallurgical coal production declined 10 percent quarter on quarter, due to severe weather conditions and was up 14 percent year on year, amounting to 84 million metric tons. In the period in question, the country's metallurgical coal exports decreased also by 10 percent quarter on quarter to 35 million metric tons, while the year-on-year increase was recorded at 49 percent. On quarter-on-quarter basis, the country's revenues from metallurgical coal exports declined seven percent, as exports fell, despite a three percent increase in the average metallurgical coal export price.