Office of the Chief Economist – Resources and energy quarterly, March 2024

The authors discuss the forecasted Australian resource and energy export earnings, which are expected to decrease in 2023-24 and 2024-25 due to price declines and currency fluctuations. They highlight the impact of global economic conditions on commodity demand, with China and India playing key roles in shaping markets. The authors also mention the challenges and opportunities presented by the global energy transition, particularly in the decarbonisation of steel and aluminium production. Additionally, they analyze the current market dynamics of metals like lithium and nickel, noting the potential for price changes in the future. The authors identify several factors that could affect the forecasts, including geopolitical events and natural disasters. Overall, the authors emphasize the importance of adapting to evolving technologies and market conditions in the resource and energy sector.