Exchange Rate + Semiconductor Price Decline... November Export Prices Down for 4 Consecutive Months

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] As the won-dollar exchange rate continues to decline, export prices in November fell for the fourth consecutive month.

According to the 'November 2020 Export and Import Price Index' released by the Bank of Korea on the 16th, the export price index last month was 91.96 (2015=100), down 0.8% from the previous month. This marks the fourth consecutive month of decline compared to the previous month. Compared to the same month last year, it fell 4.9%, marking an 18-month decline.

Kang Hwan-gu, head of the Price Statistics Team at the Bank of Korea's Economic Statistics Bureau, explained, "Export prices fell as the won-dollar exchange rate declined, along with decreases in computers, electronics, and optical equipment," adding, "The recent decline in export prices was significantly influenced by exchange rate factors." Although prices of IT products including semiconductors have fallen, the exchange rate factor had a major impact on the decline in export prices.

The average won-dollar exchange rate fell 2.4% from 1,144.68 won in October to 1,116.76 won last month. Compared to the same month last year, it dropped 4.3%.

Looking at export price decline items, DRAM fell 2.4% from the previous month, and flash memory dropped 4.7%. Kang said, "The semiconductor prices fell due to sluggish global demand caused by the resurgence of the novel coronavirus disease (COVID-19)." However, he added, "Regarding DRAM semiconductors, except for server semiconductors whose prices fell due to increased inventory, demand for mobile and PC semiconductors remains steady."

Excluding the exchange rate effect, export prices based on contract currency rose 1.4% from the previous month. Compared to the same month last year, they fell 1.3%.

The import price index in November was 95.78, down 0.3% from the previous month, marking a decline for five consecutive months. Compared to the same month last year, it fell 10.6%, showing a decline for ten consecutive months. Although international oil prices rose in November, import prices fell due to decreases in computers, electronics, and optical equipment.

The average monthly price of Dubai crude oil rose 6.8% from $40.67 per barrel in October to $43.42 last month.

Import prices based on contract currency rose 1.9% from the previous month but fell 7.5% compared to the same month last year.

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