“The decrease in export earnings reflects softer world prices and lower export volumes for most commodities,” said Phillip Glyde, ABARE Executive Director, on releasing the report.

Mr Glyde noted that gold was the only major commodity to have had higher export volumes and prices in the March quarter compared with the December quarter 2008. Commodities such as metallurgical coal, crude oil, copper and liquefied natural gas experienced significant declines in export values.

The index of export prices of Australian energy and mineral resources decreased by 15 per cent in the March quarter. The energy export price index decreased by 17 per cent and prices for metals and related minerals decreased by 8 per cent.

Commodities recording large declines in export earnings in the March quarter included: iron and steel, down $200 million (48 per cent) to $218 million; bauxite, down $25 million (43 per cent) to $33 million; diamonds, down $68 million (42 per cent) to $95 million; metallurgical coal, down $4.9 billion (39 per cent) to $7.6 billion; copper, down $565 million (36 per cent) to $1 billion; and LNG, down $1.3 billion (35 per cent) to $2.5 billion. 

This was offset to some extent by commodities which recorded significant increases in export earnings in the March quarter including: rutile concentrate, up $34 million (53 per cent) to $98 million; refined gold, up $1.5 billion (39 per cent) to $5.4 billion; uranium oxide, up $47 million (19 per cent) to $293 million; synthetic rutile, up $9 million (15 per cent) to $68 million; ilmenite concentrate, up $5 million (14 per cent) to $42 million; and petroleum refinery products, up $16 million (8 per cent) to $210 million. 

Production of the majority Australia’s major mineral and energy commodities was lower during the quarter. Increases in iron ore, refined gold and refined nickel production were offset by lower output of coal, crude oil and condensate, natural gas and copper.