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MONGOLIA: COMMODITIES - OUT, FUEL, MACHINERY,CARS AND TIRES - IN

National Statistics Office of Mongolia YTD external trade data shows (as of 2011 and all compared yoy to 2010) that

  • Mongolia did benefit from favorable top commodity prices in 2011 virtually for all its export commodities such as coal, copper, iron ore, crude, greasy cashmere, zinc, gold
  • Coal exports this year has hit 21 million tons worth 2.25 billion USD
  • Copper exports value up 25% while volume is virtually the same
  • At the same time imports are shooting up due to mining, infrastructure, construction, etc ramp-up and imports are getting more expensive at that  
  • Mongolia forked out 706M USD on diesel, value went up 75% while volume went up only 27%
  • Doubling truck imports possibly reflecting booming coal transportation by trucks
  • Doubling in volume yet more than doubling in value shows that Mongolians are importing more expensive passenger cars reflecting very strong consumer spending and sentiment (amount of passenger cars imports value is more than amount of value of gasoline imports for the cars)

According to NSO, as of the preliminary result of 2011, Mongolia traded with 127 countries from all over the world and total external trade turnover reached 11.3 billion US dollars, of which exports made up 4.78 billion dollars and imports made up 6.52 billion US dollars.

Total external trade turnover increased by 5.19 billion US dollars or by 85% compared to 2010, of which imports up by 3.32 billion US dollars or by 104%, and exports up by 1.87 billion US dollars or 64%.

exports consisted from , among others,

Tier 1 commodities

coal(MMC(975),MAK(private),TTL(MSE),SGQ(1878),ETT(state-owned) 21 105 600 tons of coal with customs price declaration of 2 250 046 400 USD, volume up 26.2 %, value up 155.1%

in line with Frontier Securities forecast of 20 million tons and range of 2 billion USD made in June 2010.

copper concentrate(EMC,state-owned) 573K tons - 963M USD, volume up 0.7%, value up 25%

Tier 2 commodities

iron ore,concentrate(Iron Mining JV,Altai Khuder,Monzol(all private)etc)5.75M tns-437M USD, volume up 61%, value up 72%

crude (Donsheng,etc)2.54M barrels worth 252M USD, volume up 22%,value 63%

zinc ore/concentrate(NFC JV) 120K tons worth 143M USD, volume up 0.8%,value up 6.4%

greasy cashmere,2831 tons worth 132M USD, volume down 9%, value up 26%

gold  2.7 tons worth 113M USD, volume down 47%, value down 37%

Tier 3 commodities

fluorspar ore, concentrate (Monros, etc)404K tons worth 95M USD

combed goat down, 538K tons worth 58M USD

moly ore and concentrate(EMC,state-owned)4.2K tons worth 46M USD

IMPORTS

Tier 1 products

Diesel Fuel(NIK/Petrovis,Just,Magnai,Sodmongol,etc) 635K tons – 706M USD, volume up 27%,value up 75%

Trucks, 24 435 pieces – 577M USD, volume up 100%, value up 177%

Passenger cars 56 120 pieces-438M USD, volume up 113%,value up 166% also interestingly

New tires 230K pieces—90M USD, volume up 20%, value up 137%

Gasoline (NIK/Petrovis,Just,Magnai,Sodmongol,etc) 322K tons – 346M USD, volume up 13%,value up 51%

Bulldozers, excavators, graders, road levelers 1918 pieces- 273M USD, volume up 140%, value up 268%

Earth, stone sorting mixing machinery 114K pieces – 148M USD volume up 173%,value up 167%

Parts of loading, lifting and handling machinery 2562K pieces—102M USD, volume 993%, value up 125%

Telecom appliances 402K pieces—80M USD, volume up 65%,value up 74%

TV and Video Monitors 232 295 pieces -  57M USD, volume up 105%, value up 157%

Dale Choi

Chief Investment Strategist,

Frontier Securities