6457.0 - International Trade Price Indexes, Australia, Mar 2018 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 26/04/2018   
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COMMENTARY


IMPORT PRICE INDEX

The Import Price Index rose 2.1% in the March quarter 2018. This follows a rise in the December quarter 2017 of 2.0%.

The rise was driven by higher prices paid for Petroleum, petroleum products and related materials (+8.7%), reflecting tight worldwide supply due to global production restrictions and capacity constraints.

Road vehicles rose 1.5%, owing to increases in the price of raw materials.

Inorganic chemicals rose 19.7%, largely driven by caustic soda, demand for which has increased for a number of industrial processes. Prices of Plastics in primary forms rose 14.7%, as a result of reduced supply of recycled plastic and increased demand in China for plastics for pipes and tubes.

These rises were partly offset by falls in Medicinal and pharmaceutical products (-4.1%).

Through the year to the March quarter 2018, the Import Price Index rose 2.3%, driven by Petroleum, petroleum products and related materials (+15.9%).


MAJOR IMPORT PRODUCTS

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

  • Road vehicles (SITC 78) (+1.5%);
  • Petroleum, petroleum products and related materials (SITC 33) (+8.7%);
  • Telecommunications and sound-recording equipment and reproducing apparatus and equipment (SITC 76) (+0.8%);
  • General industrial machinery and equipment, n.e.s. (SITC 74) (+0.8%);
  • Electrical machinery, apparatus and appliances, n.e.s. (SITC 77) (+0.2%)


EXPORT PRICE INDEX

The Export Price Index rose 4.9% in the March quarter 2018. This follows a rise in the December quarter 2017 of 2.8%.

Prices received for many of Australia's mining commodities rose in the March quarter 2018. Metalliferous ores and metal scrap prices rose 6.1%, driven mainly by rises in iron ore as Chinese manufacturers continued to build stockpiles.

Coal, coke and briquettes rose 6.5%, reflecting demand from China as well as local supply disruptions.

Gas, natural and manufactured, rose 13.8%, in response to strong demand for LNG in northern Asia for heating. 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 9.6%, reflecting tight worldwide supply due to global production restrictions and capacity constraints.

Non-ferrous metals rose 4.8%, driven by rises in Nickel, Copper, Zinc and Aluminium.

Live animal export prices rose 22.2%, reflecting increased demand for cattle, and road transport disruptions.

Offsetting the rises were falls in Sugar, sugar preparations and honey (-8.6%) and Power generating machinery and equipment (-2.9%).

Through the year to the March quarter 2018, the Export Price Index fell 1.4%, driven by Metalliferous ores and metal scrap (-10.9%) and Sugar, sugar preparations and honey (-35.2%).


MAJOR EXPORT PRODUCTS

The price movements of Australia's major export products are summarised below:
  • Metalliferous ores and metal scrap (SITC 28) (+6.1%);
  • Coal, coke and briquettes (SITC 32) (+6.5%);
  • Gas, natural and manufactured (SITC 34) (+13.8%)
  • Gold, non-monetary (SITC 97) (+1.7%);
  • Meat and meat preparations (SITC 01) (+0.3%).