SEOUL, February 13 (AJP) - South Korea's export prices picked up far faster than import prices in January on the back of strong semiconductor demand, more than offsetting import inflation caused by a weak currency, data showed Friday.
According to the Bank of Korea, January export prices climbed 4.0 percent from December and 7.8 percent from a year earlier, accelerated from a 0.6 percent monthly gain and a 0.1 percent annual decline in December.
Strong demand for chips and IT products more than offset the slight softening of the dollar. The won averaged 1,456.51 per dollar in January, compared with 1,467.4 in December.
The export volume index jumped 28.3 percent from a year earlier, while the export value index surged 37.3 percent, more than tripling December’s growth pace and overwhelming gains in imports.
Import volume and value indices increased 14.5 percent and 12.5 percent, respectively, from a year earlier.
The electronics segment, including semiconductors, bolstered export prices, rising 12.4 percent from December and 34.2 percent from a year earlier.
DRAM prices surged 31.6 percent from the previous month, while flash memory rose 9.9 percent. Compared with a year earlier, prices for both items more than doubled — up 102.7 percent for DRAM and 115.1 percent for NAND.
Primary metal products, including copper, also supported the upward trend, rising 7.1 percent from December and 22.0 percent from a year earlier. Strong copper demand from semiconductor and power-grid sectors, combined with rallies in precious metals such as gold and silver, lifted prices.
Silver ingots jumped 42.1 percent from December, while refined copper products rose 10.4 percent.
Gold prices surged more than 80 percent between December and January to reach $5,000 per troy ounce, while silver climbed to a record above $120. Copper also gained about 5 percent to around $8,800 per ton.
Import Prices Rise Moderately
Import price gains remained relatively mild despite prolonged weakness in the won, reflecting softer international fuel prices and subdued domestic demand.
Import prices edged up 0.4 percent from December and fell 1.2 percent from a year earlier.
Copper ore recorded the sharpest increase, jumping 10.1 percent from the previous month, as demand expanded across AI-related industries, from semiconductors to power grids.
Primary metal products led import price increases, posting a 6.3 percent monthly gain and an 18.5 percent annual rise.
Refined precious metals rose 24.6 percent from December and surged 129.5 percent from a year earlier, driven by price spikes in non-ferrous metals used in semiconductors, including platinum and palladium.
Trade Conditions Improve
The net terms-of-trade index rose 8.9 percent from a year earlier, up from around 5 percent in December, and climbed 4.4 percent from the previous month.
The income terms-of-trade index jumped 39.7 percent from a year earlier, reflecting sharply improved export earnings.
Fuel Prices Decline, With Exceptions
Export prices for coal and petroleum products fell 0.4 percent from December and dropped 13.1 percent from a year earlier, reflecting lower crude oil prices.
Dubai crude fell to around $61 per barrel in December, and those cheaper imports were processed and exported in January.
Gasoline export prices declined 3.7 percent from December. Retail gasoline prices in Seoul fell from 1,802 won per liter in December to 1,763 won in January.
Diesel prices dropped 13.1 percent from a year earlier amid slowing demand for diesel vehicles and rising inventories. Bunker C oil prices slid 25.1 percent as global cargo volumes softened.
Jet fuel prices rose 0.4 percent from December, supported by strong year-end travel demand and increased air cargo linked to tensions around the Strait of Hormuz.
On the import side, crude oil and bunker fuel prices fell 22.9 percent and 20.5 percent, respectively, from a year earlier.
By contrast, liquefied petroleum gas prices rose 5.3 percent from December, as winter heating demand remained strong and Saudi Aramco raised its January contract prices by more than 6 percent per ton.
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