Export Prices Turn Down Again in January... DRAM Negative for 13 Consecutive Months

Bank of Korea 'January 2020 Export and Import Price Index'
Bounced Back Briefly Due to December Exchange Rate Effect, Then Fell Again

[Asia Economy Reporter Kim Eun-byeol] Export prices, which had rebounded in December last year after four months, fell again last month compared to the previous month. As the won-dollar exchange rate declined, export prices centered on coal and petroleum products, computers, and electronic optical devices showed a downward trend. However, export prices based on contract currency excluding the exchange rate effect rose by 0.1% compared to the previous month.

According to the 'January 2020 Export and Import Price Index' announced by the Bank of Korea on the 14th, the export price index last month was 96.59, down 0.8% from the previous month (97.41). The export price index had been declining since September last year but rebounded by 0.7% in December as the average exchange rate rose. However, it turned downward again as the exchange rate fell.

Export prices in January fell by 2.7% year-on-year, marking eight consecutive months of decline. However, the Bank of Korea explained that the rate of decline has been narrowing from -7.4% in October last year to -6.5% in November and -3.2% in December.

The main driver of the export price decline was the impact of the exchange rate. Last month, the average won-dollar exchange rate was 1,164.28 won, down 1.0% from the previous month (1,175.84 won). Export prices based on contract currency excluding the exchange rate effect rose by 0.1%.

As the exchange rate influenced, DRAM export prices also fell again. DRAM export prices dropped by 2.5% month-on-month and plunged by 41.4% year-on-year. Mobile phone prices fell by 1.0% month-on-month and 13.3% year-on-year. Kang Hwan-gu, head of the Price Statistics Team at the Bank of Korea's Economic Statistics Bureau, explained, "DRAM export prices have continued a negative trend for 13 consecutive months since January last year," but added, "the negative rate is gradually decreasing." The overall semiconductor export prices are showing a similar trend to DRAM. Semiconductor export prices based on contract currency actually rose by 0.2% month-on-month.

Last month, the import price index was 107.95, down 0.8% from the previous month (108.83). Import prices also reversed to a decline as international oil prices fell. Year-on-year, import prices rose by 2.7%, continuing the upward trend following the previous month. This was because oil prices rose compared to the same period last year. The import price of mining products fell by 1.4% month-on-month, and the import price of computers, electronics, and optical devices fell by 0.5%.

This content was produced with the assistance of AI translation services.