Semiconductor Prices and Exchange Rate Drop... August Export Prices Fall for the First Time in 4 Months

[Asia Economy Reporter Kim Eunbyeol] Due to the decline in semiconductor export prices and the depreciation of the exchange rate, export prices fell again in August after four months. Import prices also declined for the second consecutive month.

According to the "August 2020 Export and Import Price Index" released by the Bank of Korea on the 15th, the export price index in August was 94.92 (2015=100), down 0.2% from the previous month. This marked a decline for the first time in four months since April (-2.2%). Compared to the same month last year, it fell 6.8%, continuing a downward trend for 15 consecutive months.

Primary metal products and coal and petroleum products rose, but decreases in computers, electronics, and optical equipment had an impact. Agricultural, forestry, and fishery products rose 0.1% month-on-month, while manufactured goods fell 0.2% month-on-month due to declines in computers, electronics, optical equipment, and electrical equipment.

By item, flash memory (-4.8%), DRAM (-1.0%), and portable phones (-1.0%) showed a downward trend.

The decline in the won-dollar exchange rate in August also affected export prices. The average won-dollar exchange rate, which was 1,198.90 won in July, fell to 1,186.85 won in August. Export prices based on contract currency, excluding the exchange rate effect, rose 0.6% compared to July.

The import price index in August was also 99.33, down 1.1% from the previous month. This marks a decline for two consecutive months since July. Compared to the same month last year, it fell 10.5%, continuing a downward trend for seven consecutive months.

By item, import prices of raw materials fell due to a decline in mining products. For intermediate goods, coal and petroleum products rose, but chemical products fell, resulting in a 0.3% decrease month-on-month. Capital goods rose 0.2% month-on-month, while consumer goods fell 0.6%.

The Dubai crude oil price rose from an average of $43.30 per barrel in July to $44.00 in August. Although international oil prices increased, import prices fell due to weakness mainly in chemical products.

Import prices based on contract currency fell 0.4% month-on-month and 9.4% year-on-year.

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