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| Trade surplus soars on stronger coal, iron ore prices |
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| Code:MFN002437 Prpduct:Coking Coal Date: 2010-07-06 |
AUSTRALIA posted its biggest monthly trade surplus since March 2009 in May on the back of surging coal and iron ore prices.
The $1.65 billion surplus confirmed a massive turnaround in the country's trade account.
The seasonally adjusted balance on trade in goods and services widened to a surplus of $1.65bn in May from a surplus of $1.12bn in April, the Australian Bureau of Statistics said today.
Economists expected a surplus of $500 million.
Imports rose 4 per cent in May with exports surging 6 per cent, the bureau said.
The ABS also revised higher its April trade surplus to $1.12bn, up by almost $1bn from its original estimate.
"This is a belter of a trade surplus," said David de Garis, senior economist at National Australia Bank.
The trade result affirms the view that the economy will be the recipient of a major boost through rising export values in 2010, helping to restore the terms of trade to 50-year highs and providing a massive stimulus to the economy.
The Australian dollar was little moved by the report, with traders instead sidelined ahead of the outcome of a Reserve Bank of Australia policy meeting later today. The RBA is expected to keep interest rates on hold at 4.50 per cent.
The Australian dollar was trading at US83.44 cents by early afternoon.
The trade boom will ensure economic growth returns to its long-term average pace in 2010, compelling the RBA to continue raising interest rates, said John Peters, senior economist at the Commonwealth Bank of Australia.
"Trade will clearly be one of the key factors to drive economic growth back to a higher level, along with dwelling investment and business investment. This type of growth in export income is a fairly significant stimulus," Mr Peters said. |
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| 06 Sep 2010 | | | Cash Ask | 3M Ask |
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| Copper | 7660.50 | 7675.00 |
| Aluminium | 2148.50 | 2179.00 |
| Zinc | 2146.00 | 2176.00 |
| Lead | 2160.00 | 2175.50 |
| Nickel | 21910.00 | 22000.00 |
| Tin | 21375.00 | 21400.00 |
| Al.Alloy | 2281.00 | 2170.00 |
| NASAAC | 2090.00 | 2120.00 |
| Steel Billet | 508.00 | 520.00 |
| Cobalt | 39501.00 | 41000.00 |
| Molybdenum | 35500.00 | 36000.00 |
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2010-09-06 |
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| PRODUCT |
BID
(US$/TON) |
ASK
(US$/TON) |
2B Coil-OCT |
3,300 |
3,380 |
No.1 Coil-OCT |
3,120 |
3,200 |
2B Coil-DEC |
3,300 |
3,380 |
No.1 Coil-DEC |
3,120 |
3,200 |
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MetalFirst China Average:
US$16.025/lb
As of Sept. 3, 2010
(updated weekly)
MetalFirst Average:
US$16.10/lb
As of Aug. 31, 2010
(updated twice weekly)
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