Morgan Stanley said that establishing a “nationally linked export platform” for Australian iron ore and other commodities can provide a way for miners to cope with the centralized procurement practices adopted by some national governments in the market where Australia is the main supplier. The bank acknowledged that the move would also raise concerns about trade and sovereignty risks. However, Morgan Stanley said Australian miners currently “have limited room for direct coordination, and are unable to agree on pricing, terms, distribution, production or marketing strategies without raising competition law risks.” At the same time, a “new trend of sovereign supply and demand appears to be accelerating.” Globally, Australia accounts for around 59% of seaborne iron ore exports. Morgan Stanley said the country also accounts for 38% of metallurgical coal exports, 20% of thermal coal exports, and 24% of total lithium supply.

Morgan Stanley said that establishing a “nationally linked export platform” for Australian iron ore and other commodities can provide a way for miners to cope with the centralized procurement practices adopted by some national governments in the market where Australia is the main supplier. The bank acknowledged that the move would also raise concerns about trade and sovereignty risks. However, Morgan Stanley said Australian miners currently “have limited room for direct coordination, and are unable to agree on pricing, terms, distribution, production or marketing strategies without raising competition law risks.” At the same time, a “new trend of sovereign supply and demand appears to be accelerating.” Globally, Australia accounts for around 59% of seaborne iron ore exports. Morgan Stanley said the country also accounts for 38% of metallurgical coal exports, 20% of thermal coal exports, and 24% of total lithium supply.