China’s thirst for iron continues to support Australia’s economy

Last month, Australia poured more than one-third of all exports to foster China’s insatiable desire for iron ore.

Recent Australian Bureau of Statistics (ABS) data June has reached a record-breaking month as Australian ore exports to the Chinese Communist Party’s administration reached an unprecedented $ 15 billion ($ 11 billion).

This is one of the $ 19 billion ($ 14 billion) shipments sent to China, breaking further records as Australia’s exports exceeded $ 40 billion ($ 30 billion) in June alone. Did.

China has spurred the second largest acquisition of Australian gold bullion, worth $ 850 million ($ 625 million), almost double what it imported in May.

However, Australia’s main dollar box, iron ore, has benefited from rising prices, which reached US $ 200 per ton for the first time in May, and has consistently exceeded that figure throughout June.

Epoch Times Photo
On September 2, 2019, a worker welded a steel rim of a bicycle at a sporting goods factory in Hangzhou, Zhejiang Province, China. (China Daily, Reuters / File Photo)

This is because, despite the bankruptcy price tag, China’s mineral consumption has continued almost unabated since March, revitalizing Australia’s economy amid the global turmoil caused by the CCP (Chinese Communist Party) virus. It means that we are supplying.

This is a trade war in Beijing with sanctions and bans on a number of Australian products, including beef, wine, barley, wood and coal, which the Communist Party administration admitted last month to punish Canberra for political reasons. Nevertheless.

Demand for ore continues despite threats from the CCP’s National Development and Reform Commission in May, which plans to diversify mineral procurement from Australia to other regions such as Africa.

Michael Schubridge, director of defense, strategy and national security at the Australian Strategic Policy Institute, previously said that Australian iron ore was protected from “China’s national coercion” because of its overwhelming value to China’s own economy. I told the Epoch Times.

Epoch Times Photo
On August 22, 2006, workers are working at the cold rolling mill of Wuhan Steel Group in the suburbs of Wuhan, the capital of Hubei Province in central China. (Alfred Cheng Jin / Reuters)

China, the world’s largest steel maker, uses iron to produce steel and has applications ranging from the construction industry to military submarines.

“The reliability and scale of other producers cannot match that of Australian suppliers, many of which are unlikely to change rapidly. Sovereign risk in many African states remains a permanent issue. “Schubridge told The Epoch Times in an email.

“Australia’s comparative advantage due to the nature of the deposits and the advanced technology of the mining companies makes Australia the most iron ore producer and the most competitive producer in the world. It’s a lasting benefit backed by investment, “he said.

One of the states that has benefited most from China’s craving for iron ore is Western Australia (WA), Australia’s leading mining nation.

WA has supported Australia’s economic recovery through the production of iron ore. In June, Australia’s exports reached a record of nearly $ 24 billion ($ 17.5 billion).

At least in terms of iron ore, the development of a strong trade partnership between the two countries has been led by Western Australian Premier Mark Magawan, who recently welcomed the new Consul General of China to Perth.

Mr Magawan also strongly defended Beijing and warned that Australian Prime Minister Scott Morrison should be more careful when talking about the country’s largest trading partner.

“Without our customers, we can’t support the country. Our biggest customer is China, so I think our language should have very subtle nuances,” says McGowan.

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