Preliminary estimates for November indicate that the index rose by 1.7 per cent (on a monthly average basis) in SDR terms, after falling by 2.9 per cent in October (revised). The largest contributors to the rise in November were increases in the prices of iron ore and coking coal. The prices of rural commodities also increased, while the prices of base metals declined in the month. In Australian dollar terms, the index fell by 0.1 per cent in November.
Over the past year, the index has fallen by 11.6 per cent in SDR terms. Much of this fall has been due to declines in the prices of coking coal and iron ore. The index has fallen by 16.3 per cent in Australian dollar terms over the past year.
As indicated in previous releases, preliminary estimates for iron ore, coking coal and thermal coal export prices are being used for recent months, based on market information.
Here is what matters, in AUD terms, which fell slightly despite the rebounds in coal and iron ore:
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
