Semiconductor Market Boom and Oil Price Rise Drive Export-Import Prices Up for 2 Consecutive Months

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eunbyeol] Supported by a strong semiconductor market and a rise in the won-dollar exchange rate, export prices increased for the second consecutive month. Import prices also rose for the second month in a row due to the increase in international oil prices.

According to the "January 2021 Export and Import Price Index" released by the Bank of Korea on the 16th, the export price index in January was 94.55 (2015=100), up 1.8% from the previous month. Export prices rose 0.6% in December last year compared to the previous month and continued to rise for two months, with the increase accelerating in January.

The rise in semiconductor prices due to the strong semiconductor market, along with the average won-dollar exchange rate increasing by 0.2% from 1,095.13 won in December last year to 1,097.49 won last month, also had an impact.

Manufactured goods rose 1.9% as coal and petroleum products, computers, electronics, and optical equipment increased, while agricultural, forestry, and fishery products fell 0.5% compared to the previous month.

Kang Hwang-gu, head of the price statistics team at the Bank of Korea, explained, "Semiconductor export prices rose 2.4% in contract currency terms and 2.7% in won terms, marking an increase for the first time in nine months," adding, "The semiconductor market has shifted to a demand-dominant market and continues to improve."

However, export prices fell 2.3% year-on-year, marking a decline for 20 consecutive months. Export prices in contract currency terms rose 1.6% month-on-month and increased 2.8% year-on-year.

Import prices stood at 100.74, up 2.8% from the previous month. After rising 2.1% in December last year, the upward trend continued for two months.

Kang explained, "Import prices showed an upward trend as international oil prices rose, leading to increases in mining products, coal, and petroleum products." Dubai crude oil prices, which were around $49.84 per barrel in December last year, rose to $54.82 last month, a 10.0% increase from the previous month.

Accordingly, raw materials rose 6.3% month-on-month due to increases in mining products, and intermediate goods also rose 2.1% as coal, petroleum products, and primary metal products increased. Capital goods and consumer goods rose 0.3% and 0.7%, respectively, compared to the previous month.

However, import prices fell 6.7% year-on-year, marking a decline for 12 consecutive months. Import prices in contract currency terms rose 2.5% month-on-month but fell 2.3% year-on-year.

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