MNI ANALYSIS: Australia Trade In Surplus For 8 Straight Months

--Iron Ore Fines Rebound In Original Terms, Thermal Coal Exports Down

By Sophia Rodrigues

     SYDNEY (MNI) - Australia's trade balance recorded a surplus for eight

months in a row, with a wider-than-expected surplus in August as exports rose 1%

while imports were little-changed.

     Data published by the Australian Bureau of Statistics Thursday showed the

trade balance recorded a surplus of A$1.6 billion in August, the same as July.

The surplus was higher than MNI median forecast for +A$1.4 billion and the

surplus for eight months has totalled A$10.46 billion. 

     In August, exports rose 1% m/m due mainly to a 13%, or A$228 million, rise

in non-monetary gold and a 3%, or A$134 million, increase in rural goods. This

was partly offset by a 1%, or A$222 million, fall in metal ores and minerals,

and metals export.

     Imports were little-changed, up A$130 million as a sharp 9%, or A$569

million, rise in capital goods was offset by a 41%, or A$289 million, fall in

non-monetary gold, and a 2%, or A$264 million, decline in intermediate goods.

The rise in capital goods import was mainly due to civil aircraft.

     In original terms, exports rose for three of the six key commodities. LNG

exports rose A$124 million or 3%, due to rise in both unit values and

quantities.

     Iron ore fines rebounded from a decline in July, up 9%, or A$298 million,

due to a 9% rise in quantities. Thermal coal export, on the other hand, fell 4%,

or A$106 million, as a 5% rise in unit values was offset by a 9% drop in

quantities.

     Below is table on international trade data for August:

                                        August                    July

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

                                       (in A$)                 (in A$)

                           Seasonally Adjusted     Seasonally Adjusted

Trade Balance                         +1.6 bln  +1.55 bln(no revision)

MNI Median     +1.4 bln (Range +1.1B to +2.3B)

Exports                              36.56 bln               36.38 bln

Imports                              34.96 bln               34.83 bln

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

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