Australian export prices fell sharply in the June quarter, down 4.5 per cent from March and 3.3 per cent on a year earlier, as weaker commodity prices weighed on the headline index, according to the Australian Bureau of Statistics.
Non-rural export prices slumped 7.2 per cent over the quarter and 8.7 per cent since June 2024, led by iron ore, which dropped 9.0 per cent, and coal, down 10.4 per cent. Michelle Marquardt, ABS head of prices statistics, said: ‘The fall in Australian iron ore and metallurgical coal export prices was linked to a slowdown in Chinese steel production.’ Demand for Australian thermal coal also eased amid higher domestic supply in India and China and a lift in renewable generation in China. Partly offsetting the declines, gold export prices rose 12.1 per cent. ‘Gold, rose 12.1 per cent this quarter as geopolitical conflicts, and economic uncertainty strengthened demand for gold.’ Ms Marquardt said.
Rural export prices inched up 0.1 per cent in the quarter and were 5.6 per cent higher over the year. Strong US demand for Australian beef lifted Meat and meat preparations prices by 2.8 per cent, with Ms Marquardt noting: ‘According to the US Department of Agriculture, US herd numbers are at their lowest in 74 years, and this meant that demand for Australian beef remained high.’ That gain was offset by a 2.8 per cent fall in Cereals and cereal preparations, as robust northern hemisphere winter harvests added to global wheat supply.
Import prices fell 0.8 per cent in the June quarter but were 1.4 per cent higher over the year. Intermediate goods led the decline, down 2.0 per cent, driven by cheaper fuel. ‘The main contributor to the fall in Intermediate goods prices was Petroleum and petroleum products, which fell 11.5 per cent,’ Ms Marquardt said. ‘Global factors affecting petrol prices included an increase in oil supply and softening of projected oil demand, with a rising number of electric vehicles, and more efficient diesel and petrol vehicles, contributing to lower imported petrol prices’. Prices for imported consumption goods rose 0.4 per cent, supported by a 1.3 per cent increase in road vehicles and a 14.4 per cent jump in Coffee, tea and cocoa. ‘Imported coffee bean prices rose on the back of continued supply issues due to adverse weather conditions in major coffee growing countries,’ Ms Marquardt said. Capital goods prices edged down 0.2 per cent on cheaper mobile phones and a stronger Australian dollar. As with exports, gold price gains helped offset broader declines.
The quarterly moves follow a 2.1 per cent rise in the export price index and a 3.3 per cent increase in the import price index in the March quarter, highlighting ongoing volatility in trade prices.
Source: Australian Bureau of Statistics (ABS)
