International Merchandise Trade
International Merchandise Trade 2025 — Quarter 2
Trade Overview for Q1 and Q2 2025
Exports
Exports showed a strong upward trend, peaking in June, boosting the trade surplus significantly. Total Exports FOB surged by 13.63%, gaining K2.08 billion to reach K17.34 billion driven by gold, LNG, and agricultural commodities.
Imports
Imports remained relatively stable with a slight rise in May due to infrastructure and fuel imports. Imports CIF increased slightly by 3.26%, adding K200 million to total K6.44 billion due to fuel and infrastructure-related goods.
Trade Balance Overview
The trade balance improved, reflecting stronger exports and steady imports, indicating positive economic dynamics. Trade Balance expanded further by 20.84%, growing by K1.88 billion to reach K10.90 billion with June recording the highest monthly surplus.
| Indicator | Q1 Total (PGK) | Q2 Total (PGK) | QoQ Change (%) |
|---|---|---|---|
| Total Exports | 15.26 billion | 17.34 billion | 13.65% |
| Imports CIF | 6.24 billion | 6.44 billion | 3.26% |
| Trade Balance | 9.02 billion | 10.90 billion | 20.84% |
Principal Trade Commodities Q2 2025
Top 5 Export Commodities
PNG’s export sector demonstrated robust growth in the first half of 2025, with aggregate exports from the top five commodities rising from K12.55 billion in Q1 to K14.24 billion in Q2, a 13.4% quarter-on-quarter increase. This expansion was driven primarily by strong performances in copper ores and concentrates, Gold, and LNG, while Petroleum oils and Cocoa beans posted declines.
| Commodities | JAN | FEB | MAR | APR | MAY | JUN |
|---|---|---|---|---|---|---|
| LNG | 1,730.6 | 2,075.0 | 1,493.1 | 1,460.2 | 1,941.0 | 2,216.1 |
| Gold | 1,351.8 | 1,585.3 | 1,128.9 | 1,853.6 | 1,261.0 | 1,735.4 |
| Copper ores and concentrates | 293.3 | 510.8 | 782.2 | 831.7 | 743.2 | 860.5 |
| Petroleum oils and oils obtained from bit | 78.9 | 425.8 | 405.8 | 308.1 | 426.1 | 160.7 |
| Cocoa beans, whole or broken, raw or roa | 219.6 | 245.7 | 223.2 | 39.2 | 195.5 | 205.6 |
- Liquefied Natural Gas (LNG) maintained its position as the dominant export, contributing over 40% of total Q2 exports. LNG values climbed from K5,298.7 million in Q1 to K5,617.3 million in Q2, marking a 6.0% increase. Despite a dip in March, LNG rebounded sharply in June to PGK 2,216.1 million, signalling resilient demand and stable production flows. The trend line indicates moderate upward momentum, suggesting LNG will remain a cornerstone of PNG’s trade earnings.
- Gold recorded a significant improvement, rising from K4,066.0 million in Q1 to K4,850.0 million in Q2, a 19.3% increase. April was a standout month at K1,853.6 million, reflecting favourable global prices and strong output. Gold’s share of total exports expanded from 32% to 34%, reinforcing its role as a secondary anchor commodity alongside LNG.
- The most striking growth came from Copper ores and concentrates, which surged by K849.1 million, or 53.5% QoQ, moving from K1,586.3 million in Q1 to K2,435.4 million in Q2. Monthly data shows consistent gains through Q2, culminating in June’s K860.5 million, indicating strong global demand and possibly improved operational capacity. Copper’s share jumped from 12.6% to 17.1%.
- Conversely, Petroleum oils (crude) posted a slight contraction, falling 1.7% QoQ from K910.5 million to K894.9 million. While February and March were strong, Q2 saw volatility, with June dropping to K160.7 million, likely due to price fluctuations or supply constraints.
- Similarly, Cocoa beans experienced a sharp decline, plunging 36.0% QoQ from K688.5 million to K440.3 million, driven by an exceptionally weak April at K39.2 million. Seasonal harvest patterns and logistical challenges may explain this downturn.
Overall, the upward trajectory of LNG, Gold, and Copper underscores PNG’s continued reliance on energy and mineral exports, while the volatility in petroleum and cocoa highlights exposure to seasonal and market risks. The strong QoQ growth positions PNG favorably for the remainder of 2025, provided global commodity prices remain supportive and operational stability persists.
Top 5 Import Commodities
PNG’s top five import commodities show a mixed trend over Jan-Jun with an overall -9.1% QoQ contraction driven largely by Petroleum oils. Netting these movements, the combined Q1 total (K1,825.7m) fell to K1,660.3m in Q2 (-K165.4m), with petroleum’s correction outweighing gains in machinery, rice, and meat—an import profile marked by energy-linked volatility alongside investment/consumption resilience in industrial parts and staples. The underlying demand looks firm. Q2 growth of +29.3% QoQ points to a stronger investment/maintenance cycle.
Top 5 Imports (Jan -June) in 2025
| Commodity | Jan | Feb | Mar | Apr | May | Jun |
|---|---|---|---|---|---|---|
| Petroleum oils | 368.0 | 373.3 | 496.9 | 290.1 | 348.0 | 286.9 |
| Machinery parts | 61.4 | 58.7 | 48.4 | 66.5 | 69.6 | 81.7 |
| Rice | 111.0 | 45.0 | 58.2 | 101.5 | 110.6 | 64.1 |
| Meat of sheep or goats, fresh | 24.8 | 20.9 | 24.8 | 41.0 | 36.5 | 45.3 |
| Parts and accessories of the motor vehicle | 53.7 | 41.9 | 38.9 | 38.4 | 40.6 | 39.4 |
- Petroleum oils surged through Q1—culminating in March (K496.9m)—but corrected sharply in April (K290.1m) and, despite a partial May rebound, settled lower in Q2, taking the category from K1,238.1m in Q1 to K924.9m in Q2 (–K313.2m; –25.3% QoQ) and establishing a clear downward slope (≈–K19.7m/month).
- In contrast, Machinery parts exhibited steady Q2 strength, climbing from K168.5m in Q1 to K217.8m in Q2 (+K49.3m; +29.3%) with consistent month-on-month gains culminating in June (K81.7m) and an upward trend (≈+K 4.35m/month). Rice recovered from an unusually soft February (K 45.0m) to exceed K100m in April–May, ending Q2 at K276.2m versus K214.2m in Q1 (+K62.0m; +29.0%); the linear trend is mildly positive given the mid-period surge, even though June (K64.1m) eased.
- Meat of sheep/goats posted the strongest relative improvement, rising from K70.5m to K122.9m (+K52.4m; +74.4%) on a steady upward path (≈+K4.74m/month) and a new high in June (K45.3m).
- Motor vehicle parts & accessories trended gently down, slipping from K134.5m to K118.4m (–K16.0m; –11.9%) despite a modest May uptick, reflecting softer maintenance/import demand.
Trade by Standard International Trade Classification (SITC)
Exports by SITC | Quarterly Comparison (Q1 to Q2, 2025)
- Mineral fuels rose modestly from K6.0 billion to K6.1 billion, a 1.49% increase, maintaining its position as the top export category.
- Manufactured goods saw a substantial jump from K3.2 billion to K4.0 billion, a 26.9% increase.
- Crude materials surged from K2.7 billion to K3.5 billion, marking a 33.3% increase.
- Food and live animals increased from K1.6 billion to K1.752 billion, an 8.6% rise, indicating steady growth in agricultural exports.
- Machinery and transport equipment dropped by -23% from K137 million in Q1 to K106 million in Q2, 2025
- Miscellaneous manufactured goods, chemicals, and beverages & tobacco remained minor contributors, with values under K10 million each, showing little impact on overall export performance.
The Table below shows QoQ SITC 2024 -2025 (Q1-Q2) in Kina Billions.
| Trade Items | 2024 Q1 | 2024 Q2 | 2024 Q3 | 2024 Q4 | 2025 Q1 | 2025 Q2 |
|---|---|---|---|---|---|---|
| Mineral fuels, lubricants and related materials | 6.769 | 4.252 | 6.687 | 6.258 | 5.987 | 6.075 |
| Manufactured goods classified chiefly by material | 1.757 | 2.102 | 2.425 | 2.742 | 3.184 | 4.042 |
| Crude materials, inedible, except fuels | 1.795 | 2.093 | 2.554 | 2.496 | 2.650 | 3.533 |
| Food and live animals | 0.896 | 1.366 | 1.468 | 1.290 | 1.613 | 1.752 |
| Animal and vegetable oils, fats and waxes | 0.570 | 0.972 | 0.882 | 0.647 | 1.070 | 1.156 |
| Commodities and transactions not classified elsewhere in SITC | 0.316 | 0.272 | 0.376 | 0.450 | 0.461 | 0.560 |
| Machinery and transport equipment | 0.646 | 0.638 | 0.223 | 0.513 | 0.137 | 0.106 |
| Miscellaneous manufactured goods | 0.011 | 0.013 | 0.015 | 0.020 | 0.025 | 0.019 |
| Chemicals and related products, not elsewhere specified | 0.006 | 0.015 | 0.008 | 0.008 | 0.009 | 0.009 |
| Beverages and tobacco | 0.002 | 0.003 | 0.002 | 0.002 | 0.002 | 0.002 |
Imports by SITC Q2, 2025
Quarterly Comparisons (Q1 to Q2, 2025)
- Machinery and transport equipment: rose from K2.2 billion to K2.5 billion (+13.7%). This is the Largest absolute gain; likely reflecting stronger capital goods and vehicle imports.
- Food and live animals: increased from K938 million to K1.1 billion (+14.6%). This reflects PNG Broad-based demand and/or replenishment effects.
- Manufactured goods (chiefly by material): up from K932 million to K1.0 billion (+7.5%). This represents a moderate, steady growth consistent with ongoing construction/inputs demand in PNG.
- Mineral fuels, lubricants & related: fell from K1.3 billion to K956 million in this quarter (-27.1%). This is the biggest decline; this single category offset more than half of the quarter’s positive gains elsewhere.
- Chemicals & related (n.e.s.): edged up from K499 million to K510 million (+2.1%) experiencing a Stable quarter with marginal growth.
- Miscellaneous manufactured goods: rose from K399 million to K472 million (+18.4%). This experienced a Healthy QoQ rise, possibly reflecting consumer or finished-goods demand.
- Beverages & tobacco: surged from K201 million to K447 million (+121.7%) representing a very strong swing; indicating shipment timing effects or policy/tax-driven front-loading.
- Crude materials (inedible, except fuels): jumped from K47 million to K179.6 million (+278.3%) this is the largest percentage move off a small base; watch sustainability in subsequent quarters.
- Animal & vegetable oils, fats & waxes: decreased from K41.3 million to K20.4 million (-50.5%). A steep drop; likely a return to trend after a higher Q1 or price/volume normalization.
- Commodities & transactions n.e.s.: fell from K16 million to K4 million (-75.6%). Small category: variability is common.
| Trade Items | 2024 Q1 | 2024 Q2 | 2024 Q3 | 2024 Q4 | 2025 Q1 | 2025 Q2 |
|---|---|---|---|---|---|---|
| Machinery and transport equipment | 1,944 | 2,301 | 2,235 | 2,406 | 2,216 | 2,519 |
| Food and live animals | 828 | 862 | 939 | 1,356 | 938 | 1,076 |
| Manufactured goods classified chiefly by material | 823 | 874 | 986 | 1,006 | 932 | 1,002 |
| Mineral fuels, lubricants and related materials | 1,127 | 1,080 | 1,128 | 1,023 | 1,312 | 956 |
| Chemicals and related products, not elsewhere specified | 458 | 493 | 563 | 497 | 499 | 510 |
| Miscellaneous manufactured goods | 424 | 706 | 468 | 514 | 399 | 472 |
| Beverages and tobacco | 34 | 31 | 56 | 47 | 201 | 447 |
| Crude materials, inedible, except fuels | 55 | 54 | 64 | 80 | 47 | 180 |
| Animal and vegetable oils, fats and waxes | 33 | 26 | 48 | 49 | 41 | 20 |
| Commodities and transactions not classified elsewhere in SITC | 8 | 16 | 11 | 8 | 16 | 4 |
Top Import & Export Destination
Top Export Destinations
• Australia. Q2 2025 exports rose by 23.1% (K859 million) to K4,578 million from K3,719 million in Q1, keeping Australia firmly as PNG’s leading individual destination this quarter.
• Japan. Q2 2025 exports fell by 22.8% (K833 million) to K2,813 million from K3,646 million in Q1, marking the sharpest single-market decline and reversing its earlier stability.
- China. Q2 2025 exports increased by 11.9% (K202 million) to K1,902 million from K1,700 million in Q1, continuing a measured recovery after a softer start to the year.
- South Korea. Q2 2025 exports surged by 64.8% (K727 million) to K1,849 million from K1,122 million in Q1, signalling a strong rebound likely driven by scheduling or demand shifts.
- Singapore. Q2 2025 exports jumped by 146.2% (K845 million) to K1,423 million from K578 million in Q1, one of the most pronounced quarterly increases, likely reflecting hub-related dynamics.
- Taiwan. Q2 2025 exports declined by 39.2% (K664 million) to K1,028 million from K1,692 million in Q1, offsetting part of the earlier spike and highlighting volatility.
- Malaysia. Q2 2025 exports doubled, rising by 100.5% (K382 million) to K762 million from K380 million in Q1, a notable gain despite the smaller base.
- United Kingdom. Q2 2025 exports eased by 19.5% (K49 million) to K202 million from K251 million in Q1, though levels remain above late-2024 benchmarks.
- Indonesia. Q2 2025 exports slipped by 13.2% (K17 million) to K112 million from K129 million in Q1, maintaining a relatively small share with a softer trend.
- New Zealand. Q2 2025 exports more than doubled, rising by 105.0% (K21 million) to K41 million from K20 million in Q1, though the absolute scale remains minor.
- Others (aggregate). Q2 2025 exports grew by 32.3% (K615 million) to K2,520 million from K1,905 million in Q1, providing broad-based support to the quarter’s expansion.
Overall. Combined exports increased by 13.8% (K2,088 million) to K17,230 million in Q2 2025 from K15,142 million in Q1, underscoring a strong quarter driven by gains in key Asian markets and diversified “Others.”
PNG Import Partner countries
- Australia. Q2 2025 imports rose by 11.5% (K221 million) to K2,141 million from K1,920 million in Q1, keeping Australia firmly as PNG’s leading individual source market this quarter.
- China. Q2 2025 climbed to K1,473 million from K1,091 million in Q1 and increase of 35.1% (K382 million), marking a strong mid-year step-up.
- Singapore. Q2 2025 shows huge decline by -33.5% (K432 million) to K857 million from K1,289 million in Q1, reversing part of the earlier-year strength.
- Malaysia. Q2 2025 edged up by 3.5% (K13 million) to K386 million from K373 million in Q1, a modest but positive gain.
- Indonesia. Q2, 2025 dipped by -3.6% (K10 million) to K264 million from K274 million in Q1, a small pullback.
- Japan. Q2, 2025 imports dropped by -16.2% (K45 million) to K232 million from K277 million in Q1, extending a cautious tone into mid-year.
- New Zealand. Q2, 2025 imports nudged up by 3.9% (K5 million) to K133 million from K128 million in Q1, steady on a small basis.
- South Korea. Q2, 2025 imports slipped by -12.2% (K12 million) to K86 million from K98 million in Q1, continuing a subdued run.
- Taiwan. Imports in Q2 2025 eased by -7.1% (K3 million) to K39 million from K42 million in Q1, broadly flat at low levels.
- United Kingdom. Q2 2025 Imports increased by 54.5% (K6 million) to K17 million from K11 million in Q1, a sharp percentage gain from a very small base.
- Others (aggregate). Q2 2025 imports were K3,572 million vs K3,077 million in Q1, an increase of 16.1% (K495 million), indicating broad-based strength across smaller partners.
Conclusion
Papua New Guinea’s trade performance in Q2 2025 strengthened significantly, driven by robust export growth and stable imports. Exports surged by 13.6% to K 17.34 billion, supported by higher shipments of LNG, gold, and agricultural products, while imports rose modestly by 3.2% to K 6.44 billion, mainly due to fuel and infrastructure goods. This resulted in a widened trade surplus of K 10.9 billion, up 20.8% from Q1. Export gains were broad-based across key destinations, with notable increases to Australia, South Korea, Singapore, and China, while imports were dominated by Australia and China despite declines from Singapore and Japan. Overall, Q2 reflects strong external demand and positive trade dynamics, reinforcing PNG’s economic outlook for 2025.