Australia’s revenue from resource and energy exports is forecast to rise almost 5% in the year through June 2027 as conflicts in the Middle East and Ukraine keep fuel costs elevated. Earnings are forecast to reach A$422 billion ($293 billion) in the period as commodity prices remain strong due to disruptions in global supply chains, before easing in subsequent years, the Department of Industry, Science and Resources said in a quarterly report on Friday. Supply upheavals in the Middle East and Russia have pushed prices for oil and liquefied natural gas higher, which is benefiting Australian producers.
LNG earnings will soar by 27% to A$70 billion this year, it said, while income from metallurgical coal used in steelmaking will reach A$44 billion. The gains will be partially offset by revenue from biggest export iron ore falling to A$107 billion from A$119 billion last year as more supply comes to market and demand from China’s steel sector plateaus. High base metal prices and the fallout from the Middle East conflict are forecast to result in increased resource and energy exports in 2026-27 before export values fall over the rest of the outlook period.
Demand for copper — a metal key for electrification — is rising thanks to the expansion of energy grids, renewables and artificial intelligence-related data center developments. This will see revenue jump to A$16 billion this year and to A$18 billion next year. Gold earnings will fall marginally, though still reach A$68 billion.
Income from lithium is also increasing this year as prices of the battery metal recover from a slump that saw mines shuttered.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing