6457.0 - International Trade Price Indexes, Australia, Dec 2018 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 31/01/2019   
   Page tools: Print Print Page Print all pages in this productPrint All

COMMENTARY


IMPORT PRICE INDEX

The Import Price Index rose 0.5% in the December quarter 2018. This follows a rise in the September quarter 2018 of 1.9%.

The main contributor to the rise is Telecommunications and sound-recording equipment and reproducing apparatus and equipment (+3.2%) due mainly to the depreciation of the Australian dollar.

Manufactures of metals, n.e.s. rose 3.8%, due to price rises for iron and steel products and the depreciation of the Australian dollar.

Fertilizers (excluding crude) rose 12.8%, due to increased production costs and price rises for urea.

These rises were partially offset by falls in prices for Petroleum, petroleum products and related materials (-5.2%) due to an increase in global supply.

Through the year to the December quarter 2018, the Import Price Index rose 7.8%. The main contributor to the rise is Petroleum, petroleum products and related materials (+23.2%).


MAJOR IMPORT PRODUCTS

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

  • Petroleum, petroleum products and related materials (SITC 33) (-5.2%);
  • Road vehicles (incl. air-cushion vehicles) (SITC 78) (+0.1%);
  • Telecommunications and sound-recording equipment and reproducing apparatus and equipment (SITC 76) (+3.2%);
  • Electrical machinery, apparatus and appliances, n.e.s. (SITC 77) (+1.4%);
  • General industrial machinery and equipment, n.e.s., and machines parts, n.e.s. (SITC 74) (+1.1%).


EXPORT PRICE INDEX

The Export Price Index rose 4.4% in the December quarter 2018. This follows a rise in the September quarter 2018 of 3.7%.

The main contributor to the rise is Metalliferous ores and metal scrap (+9.0%) reflecting on-going demand from China for iron ore.

Gas, natural and manufactured rose 8.6%, due to the continuation of strong demand across Asia for liquefied natural gas. Export contract prices for liquefied natural gas are influenced by the international crude oil price with a two to four month lag.

Coal, coke and briquettes rose 3.7%, due to increasing demand for metallurgical coal from China.

Gold, non-monetary (excluding gold ores and concentrates) rose 3.4%, due to increased investor demand amid concerns over global economic growth.

Cereals and cereal preparations rose 4.4%, due to the impact of dry weather globally in many wheat and barley growing regions.

Offsetting these rises were falls in prices for Non-ferrous metals (-5.7%) due to falls in base metal prices, and Petroleum, petroleum products and related materials (-6.0%) due to an increase in global supply.

Through the year to the December quarter 2018, the Export Price Index rose 15.7%. The main contributors to the rise are Gas, natural and manufactured (+54.6%), Metalliferous ores and metal scrap (+17.8%), and Coal, coke and briquettes (+16.0%).


MAJOR EXPORT PRODUCTS

The price movements of Australia's major export products are summarised below:
  • Metalliferous ores and metal scrap (SITC 28) (+9.0%);
  • Coal, coke and briquettes (SITC 32) (+3.7%);
  • Gas, natural and manufactured (SITC 34) (+8.6%);
  • Gold, non-monetary (excluding gold ores and concentrates) (SITC 97) (+3.4%);
  • Meat and meat preparations (SITC 01) (+2.4%).