Australia’s trade surplus rose to a six-month high in December as iron ore exports to China easily weathered diplomatic squalls between the two countries, while coal shipments found new buyers beyond the world’s second-largest economy.
China’s reliance on steel-intensive infrastructure and construction to sustain economic growth means it has little choice but to keep importing Australian iron ore, even as prices for the mineral hit multi-year highs.
Data from the Australian Bureau of Statistics out on Thursday showed goods exports to China jumped 21% in December to a six-month high of A$13.3 billion, with iron ore up sharply by both value and volume.
That helped Australia’s trade surplus swell to A$6.8 billion ($5.19 billion) in December, from A$5 billion the month before, as exports rose 2.8% and imports fell 2.4%.
The surplus for the December quarter widened by 28% to…
