Fall in Coal Exports Leads to Trade Surplus Concern.

IRON ore and coal shipments dropped in September ahead of the big price falls that have occurred since last month and show Australia's trade position is about to weaken.

The September trade surplus of $2.6 billion was still among the half-dozen best monthly balances achieved, but it was almost $400 million below the previous month and would have been lower still had it not been for a sharp fall in imports.

Export volumes of iron ore fell 2 per cent while the tonnage of hard coking coal shipped fell 8 per cent and thermal coal fell 7 per cent, the Australian Bureau of Statistics said.

"The real question for us is how long 'mining boom mark II' as symbolised by these very large surpluses might be sustained," said a note by Deutsche Bank economists Adam Boyton and Phil O'Donaghoe. "Recent falls in key commodity prices such as iron ore are likely to weigh on the trade surplus in coming months."

Source : theaustralian.com.au