April Export Prices Rise 2.2%... Import Prices Fall 0.5%

[Asia Economy Reporter Eunbyeol Kim] As the won-dollar exchange rate and international oil prices fell, the overall price level of imported products converted into Korean won also decreased for the first time in five months. Export prices rose by 2.2% compared to the previous month, marking the fifth consecutive month of increase.

According to the export-import price index statistics released by the Bank of Korea on the 14th, the import price index (provisional figure based on Korean won, 2015 level 100) for April was 109.23, down 0.5% from March (109.81). On a month-to-month basis, it had risen for four consecutive months from December last year (2.1%) to March this year (3.5%) before falling for the first time in five months.

However, compared to the same month a year ago, it was 15% higher, marking the largest increase in 10 years since April 2011 (17.3%).

Looking at the rate of increase by item compared to March, the decline was significant in raw materials such as minerals (-1.3%) and intermediate goods such as coal and petroleum products (-4.8%). This was influenced by the average Dubai crude oil price in April dropping 2.4% in one month to $62.92 per barrel. Prices of electrical equipment (-1.0%), machinery and equipment (-1.0%), and chemical products (-0.5%) also decreased.

However, prices of agricultural, forestry, and fishery products (1.6%), computers, electronics, and optical devices (1.7%), and primary metal products (1.4%) rose.

The export price index for April (based on Korean won) was 104.01, up 2.2% from March (101.78). This marks the fifth consecutive month of increase since November last year (0.6%).

The year-on-year increase rate was 10.6%, the highest in 43 months since September 2017 (11.2%).

Compared to March, notable increases were seen in computers, electronics, and optical devices (7.0%) and primary metal products (3.3%).

Within the computers, electronics, and optical devices subcategory, DRAM semiconductors rose 16.7%, system semiconductors 6.8%, and LCDs (liquid crystal displays) for TVs 5.1%, respectively.