6457.0 - International Trade Price Indexes, Australia, Jun 2018 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 26/07/2018   
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COMMENTARY


IMPORT PRICE INDEX

The Import Price Index rose 3.2% in the June quarter 2018. This follows a rise in the March quarter 2018 of 2.0%.

The rise was driven by higher prices paid for Petroleum, petroleum products and related materials (+13.7%), reflecting tight worldwide supply due to global production restrictions and capacity constraints.

General industrial machinery rose 3.3%, reflecting rises in metal prices.

Electrical machinery, apparatus and appliances rose 1.7%, driven by rises in prices of primary cells and batteries.

These rises were partly offset by falls in Metalliferous ores and metal scrap (-5.6%).

Through the year to the June quarter 2018, the Import Price Index rose 6.0%, driven by Petroleum, petroleum products and related materials (+38.2%) and Inorganic chemicals (+40.8%).


MAJOR IMPORT PRODUCTS

The price movements of Australia's major import products are summarised below:

  • Road vehicles (SITC 78) (-0.2%);
  • Petroleum, petroleum products and related materials (SITC 33) (+13.7%);
  • Telecommunications and sound-recording and reproducing apparatus and equipment (SITC 76) (+1.1%);
  • General industrial machinery and equipment, n.e.s. (SITC 74) (+3.3%);
  • Electrical machinery, apparatus and appliances, n.e.s. (SITC 77) (+1.7%)


EXPORT PRICE INDEX

The Export Price Index rose 1.9% in the June quarter 2018. This follows a rise in the March quarter 2018 of 4.9%.

Prices received for many of Australia's mineral fuel commodities rose in the June quarter 2018. Gas, natural and manufactured, rose 10.8%, in response to strong demand for LNG in northern Asia. Export contract prices for LNG are also influenced by the international crude oil price with a two to four month lag.

Petroleum, petroleum products and related materials rose 8.5%, reflecting tight worldwide supply due to global production restrictions and capacity constraints.

Cereals and cereal preparations rose 6.9%, reflecting the impact of dry weather globally in many wheat-growing regions.

Meat and meat preparations rose 3.8%, influenced by strong demand in Asia and the United States.

Coal, coke and briquettes rose 0.9%, reflecting demand from China.

Offsetting the rises were falls in Metalliferous ores and metal scrap (-1.7%), driven by falls in iron ore as demand from China slowed.

Through the year to the June quarter 2018, the Export Price Index rose 6.6%, driven by Coal, coke and briquettes (+8.5%), Gas, natural and manufactured (+18.8%), and Petroleum, petroleum products and related materials (+34.2%).


MAJOR EXPORT PRODUCTS

The price movements of Australia's major export products are summarised below:
  • Metalliferous ores and metal scrap (SITC 28) (-1.7%);
  • Coal, coke and briquettes (SITC 32) (+0.9%);
  • Gas, natural and manufactured (SITC 34) (+10.8%);
  • Gold, non-monetary (SITC 97) (+1.5%);
  • Meat and meat preparations (SITC 01) (+3.8%).