The Australian resources and energy export earnings are set to fall from record highs, but the outlook is “still relatively strong”, according to the Department of Industry, Science, Energy and Resources.
Iron ore prices have moved beyond $US100 ($147) per tonne this week following supply concerns and uncertainty in the iron ore market due to worsening COVID-19 situation in Brazil.
Brazil’s worsening COVID-19 crisis and the reduced shipment of iron ore from the South American country have led to a surge in global iron ore prices on the back of resilient demand from China.
Deloitte has tipped big miners to be “in much better financial shape compared to the global financial crisis (GFC) in 2008 and the last commodity market downturn in 2015” after the coronavirus pandemic subsides.
Solid iron ore prices are tipped to continue throughout early 2020, according to Australian iron ore development company Macarthur Minerals.
Deloitte has identified the rise and fall of iron ore, the impact of the United States-China trade disputes and gold’s record run as the three key trends affecting the commodity market.
Fortescue has posted a large boost to profits and a surge in iron ore prices for the six months ending December 31, 2018.
For the first time in two-and-a-half years, iron ore prices have soared past US$90 a tonne.