An increase by 30% of Australia’s resource and energy export earnings are expected to top a record $204 billion in 2016-17, while iron ore prices are expected to dramatically decline to $US46.70 a tonne in 2018, according to the Department of Industry, Innovation and Science.
The department said in its Resource and Energy Quarterly report, earnings would be boosted by higher prices for iron ore and coking coal, thermal coal and increased LNG export volumes.
It has been noted by the department that the demand for raw materials, including iron ore and metallurgical coal were driven by a rebound in the Chinese construction sector, although earnings are expected to steady in 2017-18.
"Prices have been boosted by continued growth in demand from China's steel sector, as well as disruptions to the supply of a number of resource commodities," the department commented in the report.
"While the surge in bulk commodity [prices] has lasted longer than initially expected, given the temporary nature of many of these factors, the prices of metallurgical and thermal coal and iron ore are expected to decline in early to mid-2017."