Wayne Cole

SYDNEY, (Reuters) – Australia’s August trade surplus soared unexpectedly to a new record. The strength of liquefied coal and coal exports outweighed a fall in iron ore prices. This resulted in a net gain for mining profits as well as tax receipts.

On Tuesday, figures from the Australian Bureau of Statistics showed that international trade surplus rose to A$15.1 Billion ($11.0 Billon) from A$12.7B the previous month. This was the largest ever recorded surplus and bucked analysts’ predictions of a decrease to A$10.3 trillion.

Due to strong demand for energy in Asia, exports rose 4.1% during the month, reaching A$48.5 million. Volumes and prices were both higher than before, which was despite a sharp drop in the prices of iron ore (Australia’s largest export earner).

Asia is experiencing a growing demand for energy. China has experienced a shortage of electricity, leading to blackouts. Countries are now competing for the shipments of LNG and coal ahead of winter.

Australia’s goods exports to China grew by 55% in August compared with a year ago and showed little effect from the ongoing political tensions between Beijing and Sydney.

August imports decreased 1.5% to A$33.4 trillion. The drop was primarily in capital goods, while good imports for consumption were higher than cars.

The trade in services is still about half the level it was before the pandemic, and Australia’s borders are closed to students and tourists.

ABS stated that it was unable to source reliable information on services and would cease reporting figures beginning January. However, the ABS is still looking for ways to improve statistics.

($1 = 1.3729 Australian dollars)