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21-11-2014, 10:59 AM
China resources demand to remain strong: RBA
BUSINESS SPECTATOR NOVEMBER 21, 2014 12:58PM
Mitchell Neems
Business Spectator Reporter
Melbourne
THE fallout for Australian coal exports from a historic climate deal between China and the United States is uncertain, says a Reserve Bank official.
The head of the RBA’s economic analysis department, Alexandra Heath, told a NSW mining industry and suppliers conference the deal to cut emissions was a manifestation of China’s concerns about air pollution.
“The effect of policies designed to address these concerns could put downward pressure on coal consumption in China, but the implications for Australia’s coal export volumes will depend on a number of factors including relative prices and competitiveness of our producers,” she said.
DOLLAR: Firmer despite RBA comments
In a surprise announcement during this month’s APEC conference, Chinese President Xi Jinping and US President Barack Obama unveiled a deal to curb emissions.
The US committed to cutting emissions by 26 per cent to 28 per cent by 2025, while China has set a goal for its emissions to peak in 2030 and has pledged a fifth of its energy will come from non-fossil fuel sources by then.
Looking at the outlook for Chinese demand, Ms Heath said China is likely to be a large market for Australian resource exports for some time to come.
“While the growth of Chinese demand is slowing, many of the long-term drivers of the original increase in demand for commodities from China are still in play,” she said.
“The Chinese economy is continuing to evolve in ways that will support demand for resources, and the sheer size of the economy suggests that these demand forces will, over the medium-to-long term, remain strong.”
BUSINESS SPECTATOR NOVEMBER 21, 2014 12:58PM
Mitchell Neems
Business Spectator Reporter
Melbourne
THE fallout for Australian coal exports from a historic climate deal between China and the United States is uncertain, says a Reserve Bank official.
The head of the RBA’s economic analysis department, Alexandra Heath, told a NSW mining industry and suppliers conference the deal to cut emissions was a manifestation of China’s concerns about air pollution.
“The effect of policies designed to address these concerns could put downward pressure on coal consumption in China, but the implications for Australia’s coal export volumes will depend on a number of factors including relative prices and competitiveness of our producers,” she said.
DOLLAR: Firmer despite RBA comments
In a surprise announcement during this month’s APEC conference, Chinese President Xi Jinping and US President Barack Obama unveiled a deal to curb emissions.
The US committed to cutting emissions by 26 per cent to 28 per cent by 2025, while China has set a goal for its emissions to peak in 2030 and has pledged a fifth of its energy will come from non-fossil fuel sources by then.
Looking at the outlook for Chinese demand, Ms Heath said China is likely to be a large market for Australian resource exports for some time to come.
“While the growth of Chinese demand is slowing, many of the long-term drivers of the original increase in demand for commodities from China are still in play,” she said.
“The Chinese economy is continuing to evolve in ways that will support demand for resources, and the sheer size of the economy suggests that these demand forces will, over the medium-to-long term, remain strong.”