Trade surplus tops forecasts as coal exports spike

A spike in coal exports helped Australia book a $4.95bn trade surplus in March, despite a cyclone.

A coal ship is docked at Abbot Point coal port in Bowen, Australia. Picture: Getty

Australia’s trade surplus narrowed in March, reflecting weaker exports due to a cyclone that lashed Australia’s northwest coast, damaging port facilities.

The country posted a seasonally adjusted trade surplus of $4.949 billion in March, compared with a surplus of $4.49bn expected by economists. The March outcome was smaller than the $5.14bn surplus achieved in February, the Australian Bureau of Statistics said Tuesday.

Imports fell by 1 per cent in March while exports declined by 2 per cent. Exports of iron ore dropped by 12 per cent. Iron ore prices were strong, however, with the steelmaking commodity fetching roughly one-fifth more than year-ago levels, fattening margins for companies that already produce some of the most profitable ore in the world.

The ABS said coal exports rose by 16 per cent in March. Miners have benefited from firm demand and prices for coal used in steelmaking, despite a slowdown in cargoes clearing customs at Chinese ports. Australia is the world’s biggest exporter of that type of coal.

Companies that export thermal coal burnt to generate power were, however, hurt by a sharp fall in prices.

Dow Jones Newswires