biedexmarkets.com– Australia’s trade balance fell more than expected to a five-month low in February, as exports- particularly those of Australia’s key iron ore products- fell substantially during the month.
Australia’s shrank to a surplus of A$7.28 billion ($4.79 billion), data from the Australian Bureau of Statistics showed on Friday. The figure was weaker than expectations of A$10.5 billion, and shrank substantially from the A$11.03 billion seen in January.
The country’s trade balance hit its weakest level since September.
The drop was spurred chiefly by a 2.2% drop in from the prior month, as the exports of metal ores and minerals- which are by far Australia’s biggest product- slid 8.1% month-on-month. Specifically, iron ore exports slid between 11% and 16%, hit by softer demand for the steelmaking material in China.
A sustained property downturn in China has greatly dented the country’s appetite for metals. China is Australia’s biggest export destination, and is a key buyer of iron ore from the country.
The drop in iron ore exports largely offset increased coal, fuel and metal exports.
Australian also grew a faster 4.8% in February, amid persistent demand for consumer goods, which were a key driver of imports during the month.
