Iron ore exports to China are predicted to slip, and food, gas and coal exports to increase their share of two-way trade with China, according to a new report by Reserve Bank of Australia economists.
The Australian Financial Review reports that China's Evolving Demand for Commodities tips iron ore to fall as China’s steel production falls. The will decrease from 58 per cent to 51 per cent of the trade value by 2025, and then 43 to 47 per cent by 2035.
Food, which currently makes up 8.6 per cent of two-way trade, as well as LNG and coal will more than make up for the decrease. Food will grow from 8.6 per cent to 9 per cent of trade from 2015 to 2025, LNG from 5.4 per cent to 10 per cent, and coal from 8.7 per cent to 9.5-10 per cent.