Soaring 113%, Australia’s GDP surpasses Brazil !
- As the two major iron ore exporters in the world, Australia and Brazil often secretly compete and compete fiercely for the Chinese market.According to statistics, Australia and Brazil together account for 81% of China’s total iron ore imports.
- However, due to the rapid spread of the epidemic in Brazil, the country’s iron ore production and exports have slowed down.Australia took the opportunity to soar, relying on the crazy price increase of iron ore to recover its blood smoothly, and its economic scale has surpassed that of Brazil.
Nominal GDP refers to the total output calculated using current market prices, and is an important indicator of a country’s comprehensive strength. According to British media reports, in the first quarter of this year, Australia’s nominal GDP rose to 1.43 trillion USD, while Brazil’s fell to 1.42 trillion USD.
The report pointed out: This is the first time that Australia’s nominal GDP has surpassed Brazil in 25 years. Australia, which has 25.36 million people, has successfully defeated Brazil, which has 211 million people.
In this regard, Alex Joiner, chief economist of IFM Investors, an Australian infrastructure investment management company, said that the outstanding performance of the Australian economy is largely due to the rise in iron ore prices.
In May of this year, the Platts Iron Ore Price Index once exceeded US$230/ton. Compared with the average value of the Platts Iron Ore Price Index of US$108/ton in 2020, the price of iron ore has risen by as much as 113%.
Joyner said that since mid-2020, Australia’s terms of trade index has risen by 14%.
As this wave of iron ore price hikes hits violently, although Brazil can also benefit from it, the country’s economy is still strongly impacted by the epidemic.
Relatively speaking, Australia’s anti-epidemic situation is more optimistic, which means that Australia can more fully enjoy the dividends of rising commodity prices.
An increase of 23%, China-Australia trade reached 562.2 billion!
The latest data show that in May this year, China imported 13.601 billion U.S. dollars (about 87 billion yuan) of goods from Australia, a sharp increase of 55.4% year-on-year. This further led to a 23% increase in bilateral trade between China and Australia from January to May compared with the same period last year, reaching 87.88 billion U.S.D.
According to the industry, despite the drastic cooling of Sino-Australian trade, the rising prices of commodities such as iron ore have boosted the value of Chinese imports. In the first five months of this year, China has imported 472 million tons of iron ore, an increase of 6% year-on-year.
Due to the continuous surge in global commodity prices, China’s iron ore import price reached 1032.8 CNY per ton in the past five months of this year, a 62.7% increase over the same period last year.
China has repeatedly controlled prices!
In addition to restricting the production of steel in Tangshan, a major steel town, China has also liberalized the import of scrap steel and further broadened the import channels of iron elements in order to reduce iron ore’s dependence on a single country.
The latest market data shows that under various measures, the price increase of iron ore has become unsustainable. The main iron ore futures contract on June 7 was reported at 1121 CNY per ton, down 24.8% from the highest price in history.
In addition, the Global Times pointed out that China’s dependence on Australian iron ore has been declining, and the proportion of Australian iron ore in my country’s imports has fallen by 7.51 % points from 2019.
It is worth noting that in the current accelerated global recovery, steel demand is strong, and steel companies can also transfer part of the cost of price increases to the United States, South Korea and other countries that desperately need steel, especially the United States, which is preparing to launch a $1.7 trillion infrastructure plan.
Data in March showed that since August last year, US steel prices have risen 160%.
Post time: Jun-09-2021