How much does Australia export iron ore to China?
around 126.8 billion Australian dollars
In financial year 2021, the value of iron ore exported from Australia to China amounted to around 126.8 billion Australian dollars. China was by far the leading export destination for Australian iron ore in terms of value in this time.
What would happen if China stopped buying iron ore from Australia?
“First, it would mean too big a disruption to the Chinese economy.” Iron ore imports from Australia are worth $85 billion annually, and so far, the agricultural imports hit by China’s tariffs and bans are worth just $6 billion, he said. “China would not be able to make up its iron ore needs from other sources.”
Does Australia still sell iron ore to China?
Australia has been supplying about 60% of world iron ore trade, with exports forecast to reach 900 million tonnes this year. China has been buying up what it can from wherever it can get it, including a doubling of its purchases from India.
What percentage of Australian iron ore is sold to China?
World Risk Developments May 2021 Iron ore aside, goods exports to China fell 40% year-over-year in Q1 (and 10% to the rest of the world). As such, iron ore accounted for 38% of Australian goods exports and 77% of goods exports to China in Q1 (up from 20% and 48% respectively two years ago).
Why does China need Australian iron ore?
China is largely dependent on Australia and Brazil for the iron ore needed to fuel its enormous steel-making capacity. It is believed domestic production currently makes up less than 20 per cent of its needs.
Why does Australia export iron ore to China?
With the Australian economy more reliant than ever on China and the export of bulk commodities, the downturn in the Chinese property sector has left many looking for an alternative destination for the nation’s bounty of natural resources. Australia has a heavy reliance on iron ore exports to China.
How important is Australian iron ore to China?
Over 2020, China bought 81 per cent of all the iron ore Australia shipped overseas. The export brings in about $136 billion to Australia’s economy a year, and is by far Australia’s largest and most valuable export.
Why do we sell iron ore to China?
Who supplies China with iron ore?
Most of its supplies come from abroad, predominantly from Brazil and Australia. By various estimates, about 60 per cent of China’s iron ore is imported from Australia. Domestic production makes up less than 20 per cent of local needs.
Where does China get most of its iron ore?
Australia
In 2021, Australia was China’s largest supplier of iron ore by a significant margin, accounting for around 105.7 billion U.S. dollars worth of iron ore imports to China. Brazil was the second-largest source of Chinese iron ore imports that year.
What is keeping Australia’s iron ore trade with China afloat?
If Australia exports it, China has likely put up barriers to entry over the past year, as diplomatic relations between the two countries rapidly deteriorated. Now, one commodity is almost single-handedly keeping the trade relationship afloat: iron ore.
Can China find new sources of iron ore?
On Thursday, Beijing announced the “indefinite suspension” of the China-Australia Strategic Economic Dialogue, which only met for the first time in 2014. But experts said that unlike wine and coal, it would be tough for China to find new sources of iron ore any time soon.
Is iron ore the elephant in the room for China?
But the elephant in the room is iron ore, which is a product China desperately needs for the massive infrastructure and housing projects that are providing the stimulus to keep the world’s second-biggest economy afloat.