Semiconductor Prices Rose... But April Export and Import Prices Fell Together Due to Sharp Oil Price Drop

Bank of Korea 'April 2020 Export and Import Price Index'

[Image source=AP Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] As international oil prices plummeted, export prices fell to their lowest level since September 2016. Although semiconductor export prices turned positive compared to the same month last year, the decline in oil prices pulled down both export and import prices.

According to the 'April 2020 Export and Import Price Index' released by the Bank of Korea on the 15th, the export price index last month was 94.54, down 1.6% from the previous month (96.08). This marks a decline for two consecutive months. The export price index is at its lowest level since September 2016 (93.46).

Compared to the same month last year, it fell 5.9%, continuing the downward trend for 11 consecutive months.

Kang Hwan-gu, head of the price statistics team at the Bank of Korea, stated, "Despite the rise in export prices of computers, electronic and optical equipment, export prices fell mainly due to coal and petroleum products and chemical products." By item, export prices of computers, electronic and optical equipment rose 2.3% from the previous month. This was thanks to the increase in semiconductor export prices such as DRAM (+7.4%) and system semiconductors (+5.1%). Semiconductor export prices rose for three consecutive months compared to the previous month and turned positive (+0.4%) compared to the same month last year for the first time in 19 months.

However, export prices of coal and petroleum products fell sharply by 31.1% from the previous month, and chemical products also declined by 2.7%. This was influenced by the average monthly Dubai crude oil price dropping sharply from $33.71 per barrel in March to $20.39 last month.

Import prices also fell 5.1% from the previous month due to the decline in international oil prices, and dropped 14.1% compared to the same month last year. Import prices of raw materials fell 15.1% from the previous month due to declines in mining products, and intermediate goods fell 3.0%. Import prices of coal and petroleum products, which belong to intermediate goods, fell 32.2% from the previous month and 59.5% compared to the same month last year.

Team leader Kang explained, "In January 2016, oil prices also fell to $26.9, causing import prices to decline," adding, "This was due to a decrease in global demand in 2015 and the shale oil boom at that time." He added, "Recently, the decline in import prices has been greater than the decline in export prices, so it can be seen as an improvement in terms of trade."

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