“While exports to China increased in October, that was likely due to higher commodity prices. Coal exports fell in the month which may be a consequence of the rumoured restrictions from Chinese state-owned steel mills on Australian coal,” Capital Economics’ Australia & New Zealand economist Ben Udy said.
“The risks to overall trade continue to mount. Given the headwinds to exports we still think [Australian] import growth will outpace export growth in the coming months.”
Overall, Australia’s trade surplus rose to A$7.4 billion (US$5.5 billion), up A$1.6 billion from September. For China specifically, which buys around 42 per cent of Australia’s merchandise exports including iron ore, the trade surplus rose to A$4.7 billion from A$3.1 billion compared to October last year due to a 13.3 per cent year on year increase in exports of merchandise to China.
