COMMODITY PRICE ADJUSTMENT
The balance of payments goods series are primarily based on international merchandise trade exports data (on a recorded trade basis) which are sourced from information provided by exporters to the Australian Customs and Border Protection Service (Customs and Border Protection). At the time of initial reporting to Customs and Border Protection the final prices may not be known for some commodities. New contract prices that have been recently negotiated, or are still being negotiated, for commodities like iron ore and coal may not be fully reflected in the Customs and Border Protection source data. Final prices are updated progressively in recorded trade data as exporters revise the information provided to Customs and Border Protection.
Balance of payments data have been adjusted for September 2010 to take into account additional information on the unit price of iron ore exports. An adjustment of $475m has been made to the value of 'metal ores and minerals'. No adjustment has been applied to the 'coal, coke and briquettes' component. As revisions to the recorded trade prices are provided to the ABS they will be incorporated into the balance of payments series and the adjustment reduced accordingly. All price adjustments previously applied to the 'metal ores and minerals' and 'coal, coke and briquettes' components have been removed.
Recent commodity price increases are likely to result in a change in the level of the series. As a result of the annual seasonal re-analysis, an estimated trend break correction of $4,100m has been applied to 'metal ores and minerals', and a $3,700m trend break correction has been applied to 'coal, coke and briquettes' and related aggregates in the June quarter 2010. A new trend break correction of -$4.3b has been applied to Non-rural goods credits and related aggregates in June quarter 2009 and trend break corrections for earlier periods have been re-estimated. Users should interpret the trend estimates for the most recent quarters with caution.