US LNG exports surge but will buyers in China turn up?
Investing.com-- Australian mining stocks dropped on Monday after a government report forecast a decline in the country’s resource and energy export earnings, driven by weaker prices for key commodities such as iron ore and liquefied natural gas.
The Department of Industry, Science and Resources’ quarterly report projected export earnings to fall 4% to A$369 billion ($241.3 billion) in 2025–26, down from an estimated A$385 billion in 2024–25, with a further drop to A$352 billion expected in 2026–27.
The outlook reflects softer demand from major trading partners, particularly China, amid rising global trade barriers and economic uncertainty.
Iron ore, Australia’s top export, is forecast to see earnings slump to A$105 billion in 2025–26 from A$116 billion, while LNG exports are expected to drop to A$60 billion from A$67 billion. Gold, however, bucked the trend, with earnings projected to rise to A$56 billion, overtaking metallurgical coal as the third-largest export.
"The strength in gold prices came as investors sought safe haven assets on the back of both heightened economic uncertainty over rising trade barriers and worries over the US fiscal outlook," the report stated.
Shares in major miners BHP Group Ltd (ASX:BHP), Rio Tinto Ltd (ASX:RIO), and Fortescue (ASX:FMG) fell between 1.8% and 2.2% in early trade, while energy heavyweight Woodside (OTC:WOPEY) Energy Ltd (ASX:WDS) also dropped 1.5%.
The mining sub-index S&P/ASX 300 Metals & Mining slipped 1.6%, while the energy sector S&P/ASX 200 Energy lost 0.6%. Australia’s broader benchmark index S&P/ASX 200 was up 0.3% on Monday.
The report cited risks including ongoing U.S.-China trade tensions and a slower-than-expected global economic recovery.