Morgan Stanley: Should Australia consider establishing a national-linked bulk commodity export trading platform?

Morgan Stanley suggested that establishing a "country-affiliated export platform" for Australian iron ore and other bulk commodities could provide a way for miners to respond to the centralized procurement actions taken by some governments in the market where Australia is a major supply country. The bank admitted that this move could also raise concerns about trade and sovereign risks. However, Morgan Stanley stated that Australian miners currently have "limited scope for direct coordination, and cannot reach agreement on pricing, terms, allocation, production, or marketing strategies without causing competition law risks." At the same time, a "new trend of sovereign supply and demand seems to be accelerating." Globally, Australia accounts for about 59% of seaborne iron ore exports. Morgan Stanley stated that the country also represents 38% of metallurgical coal exports, 20% of thermal coal exports, and 24% of total lithium supply.