According to Korea International Trade Association data released Saturday, South Korea’s crude oil import bill totaled $5.95 billion last month, down 5.3% from a year earlier.
Even as overall imports declined, sourcing shifted. Imports of non-Middle Eastern crude rose 30.1% to $2.2047 billion. U.S. crude jumped 75.8% to $1.37804 billion, the highest in 20 months. The article said U.S. crude, a light grade, is easier for domestic refiners to blend with the heavy Middle Eastern crude they commonly process, making it a practical substitute.
Crude imports from Australia and Malaysia also increased, up 44.7% and 140.5%, respectively.
By contrast, imports from major Middle Eastern suppliers fell: Saudi Arabia was down 13.4%, the United Arab Emirates 7.7%, Iraq 19.0% and Kuwait 46.4%. As a result, the Middle East share of South Korea’s crude imports dropped to 62.9% in March from 73% a year earlier, a decline of about 10 percentage points.
Changes were also seen in naphtha, a key feedstock for petrochemicals. South Korea’s naphtha import bill fell 23.8% to $1.99 billion last month. Naphtha imports from the UAE dropped 57.5% and from Kuwait 48.1%.
U.S. naphtha imports, however, surged 57-fold over the same period, emerging as an alternative to Middle Eastern supply. Companies have also moved quickly to adjust sourcing to places outside the Strait of Hormuz risk zone, including Oman, Greece and the United States, with import values rising 28.5%, 193.5% and 5,652.8%, respectively.
Supply concerns extend beyond energy. Helium used by the semiconductor and display industries has also become less stable. South Korea’s helium import bill fell 23.5% from a year earlier to $12.98 million last month.
Imports from Qatar, South Korea’s largest supplier, declined 30.1%. The article said Iran’s drone attack halted operations at Qatar’s largest helium industrial complex, and global helium prices have already jumped by nearly 50%.
South Korea depends on Qatar for 64% of its helium imports, raising concerns that prolonged Middle East risks could lead to supply disruptions.
The government said domestic supply remains stable for now. A Ministry of Trade, Industry and Energy official said there have been no disruptions so far in supplies of crude oil, major petrochemical feedstocks or helium, adding that authorities will move quickly to secure alternative import sources if supply chains show signs of strain.
* This article has been translated by AI.
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