Australia’s iron ore export earnings to rise 7% in FY 2012-13

According to the estimate of the Australian Bureau of Resources and Energy Economics (BREE) released on June 27, the country's iron ore export earnings in the fiscal year 2012-13 are forecast to increase by seven percent year on year to A$67 billion. The increase is predicted to be largely attributable to an increase in export volumes that will outweigh a slight decline in prices from the previous fiscal year. Meanwhile, the value of Australia's iron ore exports in the fiscal year 2011-12 ending on June 30, 2012 is forecast by BREE to increase by eight percent to A$63 billion, compared with the fiscal year 2010-11.
 
In 2012, world trade in iron ore is forecast to increase by five percent from 2011 to 1.1 billion mt. World trade in iron ore in 2013 is forecast to increase by a further six percent to 1.2 billion mt. In 2012, Australia's iron ore exports are forecast to increase by nine percent from the previous year to total 479 million mt. The increase is supported by a forecast increase in production at a number of mines including those operated by Rio Tinto, and the ramp-up of production at BHP Billiton's Rapid Growth Project 5. In 2013, Australia's iron ore exports are forecast to increase by a further 12 percent, supported by new mine operations scheduled to start in late 2012 and 2013.
 
The report also notes that in 2012 Brazil's iron ore exports are forecast to increase by four percent, relative to 2011, to total 326 million mt. Brazil's exports in 2013 are forecast to increase by 11 percent year on year to total 361 million mt. A large proportion of these exports are expected to be sourced from expansions to Vale's operations.