As the sun sets, a 300-metre Chinese ship chugs into Port Hedland, Western Australia, to re-ceive a load of iron ore.
It is one of about 20 vessels waiting to dock in the congested port before heading back to China in a constant, year-round cycle. Iron ore for steel is set to overtake coal as resource-rich Australia’s top export. It is also at the heart of its commercial relationship with China and has driven a surge in Australia’s terms of trade – the ratio of export to import prices.
As Julia Gillard, the prime minister, visits Beijing this week, trade links with China, which two years ago became Australia’s biggest export market, have never been more important.
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