Australia Iron Ore Exports to China Cool, Compounding Price Drop

  • Aussie may come under pressure, trade surpluses narrow further
  • Rapid turnaround from iron ore above $200 earlier in the year
Photographer: Ian Waldie/Bloomberg
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Australia’s iron ore shipments to China are slowing just as a decline in prices of the key steel-making ingredient is taking hold, potentially weighing on the Aussie dollar and compressing future trade surpluses.

In volume terms, Chinese imports of iron ore fell 4.2%Bloomberg Terminal in October from a month earlier, government data showed Sunday. China is yet to provide a value breakdown, but a recent slump in prices -- down nearly 40% since August -- suggests this will be weaker as well.