Australia July Trade Surplus Narrows as Volumes Drop

     SYDNEY (MNI) - International-trade data for July published by the

Australian Bureau of Statistics on Thursday:

                                           July                             June

--------------------------------------------------------------------------------

                                        (in A$)                          (in A$)

                            Seasonally Adjusted              Seasonally Adjusted

Trade                                                +888 mln (revised from +856

Balance                                +460 mln                             mln)

                +900 mln (range +200 mln to 21.

MNI Median                                 bln)

Exports                               31.07 bln                        31.78 bln

Imports                               30.61 bln                        30.89 bln

     FACTORS: Australia's trade surplus narrowed further in July as exports fell

more than imports. Exports fell 2% m/m due mainly to a 12% m/m fall in mineral

fuels, declines of 2% in metal ores and minerals as well as 2% in coal, coke and

briquettes. Imports fell 1% m/m due to a 2% drop in consumption goods, 1% fall

in intermediate goods, and a 17% fall in non-monetary golds. 

     In original terms, exports fell in three of the six large commodity

categories. But details in the data were weaker, with volumes dropping for four

of them, and unit values also falling for four of them. The worst among them

were a 13% fall in hard coking coal exports, mainly due to a 11% decline in unit

values, and a 29% fall in semi-soft coal exports due again to a 11% fall in unit

values. LNG exports fell 4% due to a 9% decline in unit values that was partly

offset by a 5% rise in volumes. 

     TAKEAWAY: The surplus was lower than a MNI median forecast but within the

range predicted by economists in a MNI survey. Of concern is the fall in volumes

for iron ore lump and fines, and hard and semi-soft coal. The growth in LNG

volumes also slowed to just a 5% m/m rise -- the slowest pace in three months. 

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

[TOPICS: MTABLE,MALDS$,M$A$$$,M$L$$$,MT$$$$]