International Trade Price Indexes, Australia

The main contributors to the fall this quarter (-4.5%) were:

• Metalliferous ores and metal scrap (-9.0%), driven by international trade uncertainty and ongoing weakness in the Chinese property sector. Additionally, strong global supply has further weighed on prices with increased Australian and Brazilian exports this quarter and new projects in Africa ramping up, and
• Coal, coke and briquettes (-10.4%), driven by falling thermal and metallurgical coal prices. Thermal coal prices fell as higher Chinese renewable energy power generation lead to lower fossil-fuel power output. Metallurgical coal prices dropped on the back of increased trade policy uncertainty and announced plans to cut steel production in China, reducing demand for metallurgical coal, and
• Gas, natural and manufactured (-4.4%), prices fell this quarter driven by falls in petroleum gases, with expanding global gas supply, led by new US capacity, weighing on prices. Milder weather in Asia and lower household energy use along with high Japanese inventories softened Asian demand this quarter.

The main offsetting contributors were:

• Gold, non-monetary (+12.1%),  global uncertainty resulting in ongoing strength in demand for gold as a safe-haven asset and continued building of gold reserves by central banks. Additionally, interest rate cuts by the US federal reserve increased the attractiveness of gold to investors, and
• Meat & meat preparations (+2.8%), driven by high US demand for Australian beef as US herd numbers are at historic lows. Additionally, a fall in beef supply from other key beef exporters to the US further added to the competitiveness of Australian beef.

Through the year, the Export Price Index fell 3.3%. The main contributors were:

• Coal, coke and briquettes (-26.2%), and
• Metalliferous ores and metal scrap (-6.2%).

The main offsetting annual contributors were:

• Gold, non-monetary (+44.3%), and
• Meat and meat preparations (+14.5%).

The import price index fell 0.8% this quarter. The main contributor to the fall was: 

• Petroleum, petroleum products and related materials (-11.5%), prices fell with excess supply in the global market from OPEC+ nations along with falling demand due to weakening manufacturing output and the green energy transition. 

The main offsetting contributors were: 

• Gold, non-monetary (+12.5%), due to growing global uncertainty, resulting in ongoing strength in demand for gold as a safe-haven asset and continued building of gold reserves by central banks. Additionally, interest rate cuts by the US federal reserve increased the attractiveness of gold to investors, and
• Road vehicles (+1.3%), driven by existing car models being imported at higher prices. This was partially offset by the appreciation of the AUD. 

Through the year the Import Price Index rose 1.4%. The main contributors were: 

• Gold, non-monetary (+44.6%), and
• Coffee, tea and cocoa (+62.6%)

The main offsetting annual contributor was:

• Petroleum, petroleum products and related materials (-16.7%).

Import Price Index

Export Price Index

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Price indexes published by the Australian Bureau of Statistics (ABS) provide summary measures of the movements in various categories of prices over time. They are published primarily for use in Government economic analysis. Price indexes are also often used in contracts by businesses and government to adjust payments and/or charges to take account of changes in categories of prices (Indexation Clauses).

Use of Price Indexes in Contracts sets out a range of issues that should be taken into account by parties considering including an Indexation Clause in a contract using an ABS published price index.