MNI: RBA notes iron ore demand "firm" amid Chinese bans

The Reserve Bank of Australia has noted the impact of Chinese bans on the demand for Australian exports, but also notes that demand for the largest export commodity - iron ore - remains firm.

Minutes of the December 1 RBA board meeting, released today, show the bank discussed the Chinese import bans in the context of weak demand for Australian exports caused by the pandemic disruptions.

"The imposition by Chinese authorities of import bans and other obstacles to imports of some Australian products, particularly agricultural products and, more recently, coal, had also had an effect," the minutes said.

"However it was also noted that Chinese demand for Australian iron ore remained firm."

Iron ore is Australia's largest commodity export to China by a significant margin, amounting to around USD63 billion in exports each year.