Regional Coal: Strong coal prices to push Australia's exports

Strong demand for iron ore and coal will push up prices and export volumes but it won't last for too long, the nation's chief commodities forecaster said as quoted by AAP.

The Australian Bureau of Agricultural and Resource Economics (ABARE) said in its latest commodities report that the value of mineral and energy exports would soar 23 per cent in 2005-06.

But ii warned although this would push up exports to a record $84.4 billion, it would not last.

"The value of Australian exports of minerals and energy commodities is forecast to rise by 23 per cent to a record $84.4 billion in 2005-06, largely because of significant gains in volumes and prices for metallurgical and thermal coal and iron ore," it said.

"Growth in world consumption for most of the major minerals and energy commodities is forecast to decline from current levels through to 2006, in line with weaker assumed growth in global industrial activity.

"As production growth for most commodities is forecast to accelerate over the remainder of 2005 and 2006, most prices are forecast to decline from mid-2005 levels."

Australian thermal coal exports are expected to improve 6.7 per cent to 116 million tonnes, with production up 3.6 per cent to 181.1 million tonnes.

World prices for thermal coal should increase two per cent this calender year and another two per cent in 2006.

The value of Australian thermal coal exports should rise 47 per cent to $6.5 billion, while coking coal exports are tipped to rise 57 per cent to $18.2 billion.(*)