Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Wednesday, 4 June 2014

Oresome volumes

Gosh.

The Port Hedland Port Authority just released the latest cargo figures for May 2014.

Tonnage shipped for iron ore increased yet again by another 3.6% in May, up to another record high of a colossal 36.000d/mt.

An incredible 85% of that iron ore cargo is bound for China & Taiwan, with Japan and Korea mopping up the remainder (click chart):


The monthly volumes being shipped out of Port Hedland in the Pilbara have increased both relentlessly and phenomenally over recent times.

The volumes shipped are more than 65% higher than they were in October 2012, with a huge share of the iron ore headed for China, where inventories are reportedly piling up (may be risky...).

Despite the declines in the iron ore price, which have been offset by a falling Aussie dollar, net exports added a whopping 1.4 percentage points to today's GDP result.

I'll take a little bit more of a detailed look at the GDP figures later, but in short the economy grew by a strong 4.9% year on year in nominal terms, the GDP result being a none-too-shabby 1.1% for the quarter and 3.5% for the past year.

The rest of the year may see a slower economy, in part due to the lower iron ore price itself and slowing consumer expenditure, but nevertheless a fine result in today's National Accounts which smashed expectations.

New South Wales was again a standout performer.