February Export Prices Rise 1.2% Month-on-Month Due to Exchange Rate Increase

Bank of Korea's 'February 2020 Export Price Index'

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eunbyeol] Export prices in February rose compared to the previous month due to the impact of the won-dollar exchange rate increase. Although there were expectations that the spread of the novel coronavirus infection (COVID-19) would negatively affect export prices, export prices actually rose compared to the previous month due to the exchange rate effect. However, export prices based on contract currency, excluding the exchange rate effect, declined.

According to the "February 2020 Export and Import Price Index" released by the Bank of Korea on the 13th, the export price index in February was 97.90, up 1.2% from the previous month. This was largely due to the average won-dollar exchange rate in February being 1,193.79 won, a 2.5% increase compared to January (1,164.28 won). Export prices, influenced by the exchange rate, turned upward after two months. However, compared to the same month last year, they fell by 1.8%.

Agricultural, forestry, and fishery products rose 2.3% from the previous month, and manufactured goods such as computers, electronics and optical equipment, and transportation equipment increased 1.2% from the previous month.

By item, export prices for flash memory (+10.7%), DRAM (+2.8%), LCDs for TVs (+4.3%), and portable telephones (+2.5%) rose compared to the previous month.

However, export prices based on contract currency excluding the exchange rate effect fell 1.1% from the previous month. Compared to the same month last year, they dropped 7.2%.

Import prices, which are heavily influenced by oil prices, fell 1.3% from the previous month to 106.52 due to the sharp decline in international oil prices. Compared to the same month last year, they decreased by 0.9%.

The average Dubai crude oil price last month was $54.23 per barrel, a 15.7% drop compared to the previous month ($64.32), which had a significant impact.

As oil prices fell, import prices of raw materials such as mining products declined 6.9% from the previous month. For intermediate goods, coal and petroleum products decreased, but import prices of computers, electronics and optical equipment, and electrical equipment rose, resulting in a 0.8% increase from the previous month.

Capital goods and consumer goods rose 1.6% and 1.3%, respectively, from the previous month.

Import prices based on contract currency excluding the exchange rate effect also fell 3.4% from the previous month. Compared to the same month last year, they dropped 6.2%.

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