SMH reported rapid urbanisation in China is expected to continue to drive the demand for Australian iron ore exports for decades to come, according to Reserve Bank Analysts.
Reserve Bank Analysts said:
In 2010, China constructed more residential floor space than the entire dwelling stock in Australia. This high level of construction follows two decades of strong growth, during which the amount of annual floor space completed more than doubled.
As a consequence, China’s increased appetite for raw materials has resulted in a significant increase in Australian commodity exports, especially for iron ore and coking coal.