Domestic iron ore is one of Australia’s largest commodities for export, but rising tensions with China and higher prices may bring it under fire.
China has declared they will step up their domestic iron ore exploration and production and widen channels for imports of the steel-making commodity, to combat record prices of iron ore lining Australia’s pockets.
China is currently Australia’s top trading partner for iron ore, with 60% of China’s supply coming from Australia’s supply.
While iron ore has primarily been unscathed during the heated feud between Australia and China and the blockades by China of various Australian exports, including coal, wine and seafood, the record prices could herald the coming of another mining boom.
The price of iron ore in early May reached US$230 per tonne as compared to the previous decade’s record peak of US$200.