none
none

INDUSTRIAL ACTIVITY PROVIDES IMPETUS FOR STRONGER GLOBAL TRADE

28-04-2017
by 
in 

Available now, the April edition of Efic’s World Risk Developments examines the impacts of Cyclone Debbie on coking coal exports; questions whether stronger world trade growth will boost Australian commodity producers; and looks at the potential for US trade policy diversification.

Coking coal prices have doubled in the last few weeks driven by supply disruptions in Queensland due to tropical Cyclone Debbie. Cassandra Winzenried, Chief Economist at Efic says that industry estimates suggest about 12Mt of coking coal could be affected, with China likely to look at other markets to fill the supply shortfall.

Meanwhile, robust industrial activity is providing the impetus for stronger global trade, which should support Australia’s commodity exports. “When you strip out the impact of volatile commodity prices, trade volumes growth has improved significantly,” says Winzenried. “This is supported by robust manufacturing output in both advanced and emerging economies.”

Winzenried points out that Australia’s export receipts are growing at double digit pace, led by stronger resource exports. “Upbeat sentiment data suggests the improving global trade trends should continue over the coming months.”

Meanwhile, in the USA, the Treasury has told Congress that China does not meet the criteria for currency manipulation. “Specifically, China does not meet Treasury’s third benchmark, which is repeated purchases of foreign currency that amount to more than 2% of GDP,” says Winzenried.

Other nations covered in this month’s edition of World Risk Developments include Turkey, Thailand, South Africa, Iran, and Vietnam.

The April 2017 edition of World Risk Developments is available via the Efic website.

Efic
1800 093 724
www.efic.gov.au

Related news & editorials

  1. Manufacturing data are positive
    01.09.2017
    01.09.2017
    by      In
    The remarkable growth of the manufacturing sector continued during August 2017, with the Ai Group Australian PMI rising by 3.8 points to 59.8. Not only is this the highest monthly figure since 2002, it marks an unprecedented eleventh consecutive month of expansion for the manufacturing sector.... Read More
  2. Manufacturing on the rise
    03.08.2017
    03.08.2017
    by      In
    Australian manufacturing has continued its upward path for the tenth consecutive month, with the Ai Group’s Performance of Manufacturing Index coming in at 56.0 for July.
    The manufacturers surveyed for the report cited increased demand from construction, mining and agriculture for locally... Read More
  3. 17.07.2017
    17.07.2017
    by      In
    After just over a year of negative outlooks and preparing for the worst, Arrium may finally have a glimmer of hope. 
    Arrium's Whyalla steelworks has been bought out by Sanjeev Gupta, a British businessman who has had significiant experince turning around flagging steel producers and companies. 
    His... Read More
  4. 04.07.2017
    04.07.2017
    by      In
    The Ai Group’s Australian PMI ended the financial year on yet another high, recording a slight increase to 55 for the month of June 2017. And although the index only increased by 0.2 from the previous month, it did mark the ninth consecutive month above the magical 50 figure that indicates growth.... Read More