In 2020, Australia shipped goods worth US $254.3 billion to varied countries worldwide. This trend has always been on the rise except for a couple of hiccups caused due to the Covid-19 pandemic. This really gets one thinking about what exactly does Australia export so much?
This question has many answers because Australia is one of the few countries affluent in naturally occurring minerals required by most developing countries such as China or India. Therefore, let’s check out the most popular Australian exports keeping the country going even in the most challenging times.
Australia is one of those few countries in the world that is very rich in iron ore. Consequently, this is the most prominent Australian export that allowed the country to benefit from the increasing prices of iron. Over the span of the last five years, the country has also managed to increase the production volumes of iron.
Hence the revenue generated from this export is also estimated to grow at a rate of 13.5% in the following five years through 2021-22 to a staggering total of $141.1 billion. It is safe to say that China is the biggest consumer of Australia’s iron. At the rate at which China is industrializing, inevitably, this demand will only increase with time.
Oil And Gas
Australia’s oil and gas extraction industry is also growing at an unprecedented rate even after bearing the consequences of volatile revenue. There are varied factors that time and influence the growth of this industry.
Some of the most well-known factors include the production volumes of each year, the changes in oil and gas prices, and the demand for oil and gas both in the domestic and international markets. This industry’s natural gas production sector is estimated to increase at a rate of 8.8% each year. This means things are looking up for the Australians.
Even though the world’s industries are looking for sustainable sources of energy, that transition will take time. Meanwhile, Australia is feeding this demand for coal by providing low-cost coal relative to most other coal-producing countries around the world.
The population in Australia is not very significant, which means they still have a lot left even after sufficing their domestic requirement. This further means this is heavily reliant on exports, and there is no shortage of countries that need that coal.
Being the largest producer of alumina and bauxite globally, Australia is automatically the largest exporter of alumina. This is an essential raw material as it is refined to make aluminum which is further used to produce different things.
The alumina production in Australia is primarily dominated by three major players, namely Rio Tinto, Alcoa, and South32. Furthermore, the revenue generation of this industry is further projected to increase at a rate of 0.2% over five years.
As you can see, Australia exports some of the most expensive and in-demand materials to the world. They also made TSS visa simple to fulfill the requirement of skilled employers . However, China remains the dominant one of all the countries importing from Australia; China remains the dominant one. Given the rising political tension between countries, this needs to change, so Australia needs to find new customers for its exports.