As Oil and Commodity Prices Surge... May Import Prices Rebound 2.6% Up

Bank of Korea 'May 2021 Export and Import Price Index'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] As international oil prices slightly fell and then rebounded, import prices also rebounded last month. Export prices rose for the sixth consecutive month due to increases in coal and petroleum products, and primary metal products.

According to the "May 2021 Export and Import Price Index" released by the Bank of Korea on the 11th, the import price index last month was 112.41 (2015=100), up 2.6% from the previous month (109.56). Compared to the same month last year, it rose 13.8%.

Import prices, which had risen for four consecutive months since December last year, turned downward for the first time in five months in April this year due to a slight decline in international oil prices. However, in May, oil and raw material prices surged again, causing import prices to rebound.

The price of Dubai crude oil averaged $62.92 per barrel in April but rose 5.4% month-on-month to $66.34 last month. Compared to the same month last year, when the COVID-19 crisis was severe, oil prices jumped 117.7%.

Raw materials, centered on mining products, rose 5.9% month-on-month, and intermediate goods such as primary metal products and coal and petroleum products increased 1.7% month-on-month. Capital goods and consumer goods rose 0.7% and 0.4%, respectively, compared to the previous month. By item, import prices of crude oil (5.8%), liquefied natural gas (10.1%), and iron ore (12.2%) stood out.

The export price index was 106.06, up 1.5% from the previous month (104.46) and 12.3% compared to the same month last year. Export prices rose for six consecutive months month-on-month, influenced by increases in coal and petroleum products and primary metal products amid a rise in the won-dollar exchange rate in May.

Agricultural, forestry, and fishery products rose 1.7% month-on-month, and manufactured goods increased 1.5%. By item, diesel (7.3%), refined blended raw materials (8.0%), and hot-rolled steel sheets and plates (8.8%) increased.

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