Raw Material Prices That Broke Through the Ceiling Drop Sharply... International Oil Prices Also Stall

Nickel and Iron Ore Prices Plunge Amid Recession Fears
International Oil Prices Stall... Domestic Average Gasoline Price Drops Below 2,000 Won After Two Months

The surge in fuel prices has stopped after 9 weeks as the fuel tax cut was expanded to 37%. According to Opinet, the oil price information service of the Korea National Oil Corporation, the average retail price of gasoline at gas stations nationwide in the first week of July was 2,116.8 KRW per liter, down 20.9 KRW from the previous week. On the 10th, a gas station in Seoul was selling gasoline at 2,079 KRW and diesel at 2,109 KRW per liter. Photo by Moon Honam munonam@

[Asia Economy Reporter Jeong Dong-hoon] The soaring prices of raw materials, which seemed to have no ceiling, have recently turned into a sharp decline. This is due to overlapping concerns about China's economic slowdown and the US tightening policies, leading to forecasts of reduced demand worldwide. The international oil prices, which had been on a high rise, have also slowed their upward trend. Accordingly, the nationwide average gasoline price has fallen below 2,000 KRW per liter again after about two months.

◆ Nickel, iron ore, etc. turn to sharp decline = According to the industry and Korea Resource Information Service on the 21st, the price of nickel, a key raw material for electric vehicle batteries, was $19,333 per ton as of the 15th of this month, down more than 18% from $23,700 per ton at the end of June. Although it recently rebounded to the $20,000 range, it remains below half compared to $48,410 per ton in March.

Nickel prices surged after Russia's invasion of Ukraine led to a halt in Russian nickel supply, but it appears to have come under downward pressure due to growing concerns about a global economic slowdown.

Copper, which is used in various industries such as electronics, electrical, automotive, and construction and is sensitive to the economy, has also sharply declined since June, falling to $7,000 per ton as of the 15th. Compared to $10,730 per ton recorded in March, it has dropped nearly 35%.

Aluminum prices also fell to $2,320 per ton as of the 15th of this month, down more than 40% from $3,984 in February.

Iron ore prices have also decreased. Iron ore prices, which were in the $144 per ton range last month, recently fell to the $104 range. Cobalt, another major material for electric vehicle batteries along with nickel, also plunged from $81,690 per ton in May to $50,000 recently.

◆ International oil prices also stall... gasoline prices stabilize = The nationwide average gasoline price has fallen below 2,000 KRW per liter again after about two months.

This is interpreted as due to the slowdown in the rise of international oil prices and the expanded reduction in fuel tax since the beginning of this month. According to the Korea National Oil Corporation's oil price information service OPINET, as of 2 p.m. on this day, the nationwide average gasoline price was 1,992.10 KRW per liter, down 10.06 KRW from the previous day.

Previously, due to the Ukraine crisis and other factors, gasoline prices exceeded 2,000 KRW per liter on March 15 this year. It was the first time in about 9 years and 5 months that gasoline prices surpassed 2,000 KRW.

Gasoline prices, which had been hitting record highs daily, fell below 2,000 KRW per liter again after the fuel tax reduction was expanded to 37% from the 1st of this month and the effect of falling international oil prices was added. At the same time, the average diesel price at gas stations nationwide was 2,056.61 KRW per liter. Diesel prices also peaked at 2,167.66 KRW on the 30th of last month and then the upward trend weakened.

Domestic gasoline and diesel prices are expected to continue their downward trend for the time being. Recently, refiners have lowered the supply prices of domestic gasoline and diesel by more than 100 KRW per liter, reflecting the decline in international petroleum product prices.

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