Economic Indicator

Prices for major exports in Australia decline for third consecutive quarter

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The Australian Bureau of Statistics revealed that the export price index fell 4.3% in the September quarter and by 6.8% over the past year.

This marks the third consecutive quarter of declining prices for Australia's major export commodities.

Coal, coke, and briquettes saw a drop of 8.9%, while metalliferous ores and metal scrap decreased 8.6%.

Michelle Marquardt, head of prices statistics at the ABS, attributed these declines to a sluggish residential property market in China, which has adversely affected domestic steel production and dampened demand for Australia's iron ore and metallurgical coal.

As a result, Chinese inventories of both commodities increased during the quarter.

The prices for crude fertilisers and minerals fell 14.4% in the September quarter and 69% over the year, primarily due to a surge in lithium production and overall supply.

In contrast, gold prices experienced a boost, with non-monetary gold rising 4.4% in the September quarter and 24.6% over the year.

Marquardt noted that increased demand from central banks and ongoing economic uncertainty driven by global conflicts have propelled gold prices to record highs.

"Market expectations of easing global monetary conditions have also made gold a more attractive investment," she added.

The import price index also declined, falling 1.4% in the September quarter and 1.1% annually.

The decrease was largely influenced by a 7.7% drop in petroleum and petroleum products. Despite rising crude oil prices due to the conflict in the Middle East, strong production from non-OPEC+ nations in the Americas has led to a decline in crude oil prices.

The report also highlighted notable increases in prices for coffee, tea, and cocoa, which rose 10.5% for the quarter following global cocoa price hikes caused by crop disease and flooding in West Africa.

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