Federal Minister for Resources, Madeleine King, released the Resources and Energy Quarterly (REQ) publication this week, which forecasts that global growth in the mineral and resources sector is expected to slow down in 2023-24.
“The REQ report for the September quarter 2022 underlines the importance of the sector for Australia’s ongoing economic wellbeing and shows the outlook for Australian resources and energy remains strong,” Ms King said.
Global demand has seen resource export revenues hit new highs but the REQ expect global growth to slow, forecasting that the Australian resource and energy exports will earn a record $450 billion in 2022-23 before easing to $375bn in 2023-24.
The forecast is for iron ore export earnings to ease from $119bn in 2022-23 to $95bn in 2023-24, reflecting moderating prices, growth in global steel output, and rising ore supply.
The REQ attributes lower iron ore prices over the past quarter to slowing global growth and weaknesses in China’s housing sector.
Joel Crane, Commercial Manager at Cobalt Blue, said on the recent company webinar that the sector couldn’t ignore what was happening in China because the contraction of the Chinese property sector affected many other markets.
In China, property sales have declined due to high prices, high debt, and property developers failing to repay debts, leading to less consumption of technology and other household commodities.
“The Australian Government is strongly backing our critical minerals sector, which provides the crucial minerals needed to help Australia and the world meet our net zero commitments,” Ms King said.
The REQ is available on the Department of Industry, Science and Resources website at: https://www.industry.gov.au/publications/resources-and-energy-quarterly-september-2022