SMM Information: the resources and energy industries are on track to record high export earnings in fiscal year 2017. But the phenomenon will be short-lived.
"2018 marks the end of a remarkable investment boom in resources and energy over the past decade," said Mark Cully, chief economist. Commodity prices fell in the last quarter of 2017, but this was largely offset by the depreciation of the Australian dollar.
Iron ore is Australia's largest export. China is the largest steel producer in the world. Export prices for Australian iron ore have come under pressure as a result of slowing steel production in China and increased supply in Australia and Brazil.
Thermal and metallurgical coal prices are also likely to fall as a result of increased global supply and moderated demand.
The International Energy Agency (International Energy Agency) recently predicted that Australia would play the role of a world leader in energy, providing energy for future energy demand and could become one of the major natural gas suppliers in the transition from coal-fired power generation to natural gas.
According to government data, LNG will increase export earnings by $14 billion in 2018 / 2018 after the completion of three large LNG projects planned for 2018, which will be worth $100 billion. Iron ore and coal prices will fall by $11 billion and $10 billion, respectively.
In 2022 and 2023, nine large natural gas, coal and iron ore projects are likely to be responsible for more than 2/3 of potential investments, the report said, because of the challenging market environment, which has led companies to refocus their investments. To reduce current operating costs and increase output.
In addition, the report expects the outlook for basic metals to be more optimistic than for other commodities, as global demand for stainless steel, cars, aluminum packaging and infrastructure will increase.
Coal and iron ore prices were higher than expected, and export earnings grew by $3.3 billion in fiscal 2017 compared with the government's previous quarterly report.
SMM Yan Cedar's Translation arrangement
