Last week, the Australian Bureau of Statistics (ABS) released its export/import price index, which signaled an enormous 11.0% increase in Australia’s terms-of-trade over the March quarter 2021 and a 15.8% increase through the year:
Australia’s terms-of-trade should record a massive rise in Q1 2021.
This surge in the export/import price index was driven by a 18.2% quarterly rise in metalliferous ores and metal scrap prices, caused by strong iron ore demand from China and constrained global supply owing to the tragic dam failure at a Vale mine in Brazil in early 2019.
