Export Prices Increase 1.6% MoM, 7.0% YoY
Import Prices Rise 1.1% MoM, 3.0% YoY
Export Volume and Value Index Decrease by 1.4% and 0.3% Respectively; Import Volume Increases by 0.5%, Value Index Decreases by 2.7%
Net Terms of Trade Index Rises 4.5%, Income Terms of Trade Index Up 3.0%
In November, import prices increased by 1.1% from the previous month due to the rise in the USD/KRW exchange rate, marking the second consecutive month of increase. Trade conditions have been improving for 17 consecutive months.
The Bank of Korea announced this in the “November 2024 Export and Import Price Index and Trade Index (Preliminary)” on the 13th.
November export prices, based on won, rose by 1.6% from the previous month as coal and petroleum products increased alongside a higher USD/KRW exchange rate. Compared to the same month last year, they rose by 7.0%.
The average USD/KRW exchange rate increased from 1,361.00 won in October to 1,393.38 won in November, a 2.4% rise from the previous month and a 6.3% increase from the same month last year. Dubai crude oil prices fell by 3.1% from $74.94 in October to $72.61 in November, a 13.1% decrease from the same month last year.
Agricultural, forestry, and fisheries products rose by 1.5% from the previous month. Industrial products, centered on coal, petroleum, and chemical products, increased by 1.6% from the previous month.
November import prices, based on won, rose by 1.1% from the previous month due to higher USD/KRW rates despite falling international oil prices, led by primary metal products. Compared to the same month last year, they increased by 3.0%.
Raw material prices rose by 0.2%, dominated by agricultural, forestry, and fisheries products. Intermediate goods, including primary metal products, coal, and petroleum products, rose by 1.5% from the previous month. Capital and consumer goods increased by 1.2% and 1.5% respectively.
Import prices based on contract currency fell by 0.9% from the previous month and dropped by 2.6% from the same month last year.
The November export volume index fell by 1.4% compared to the same month last year due to decreases in transport equipment, machinery, and equipment, with the export value index falling by 0.3%.
Import volume indices increased by 0.5% due to rises in machinery, equipment, computers, electronic, and optical devices, but import value indices decreased by 2.7%.
November’s net terms of trade index rose by 4.5%, with import prices applying time lags decreasing by 3.2% and export prices rising by 1.1%. This marks 17 consecutive months of improvement since July last year. It decreased by 0.1% from the previous month.
The income terms of trade index rose by 3.0% compared to the same month last year, as the net terms of trade index increased by 4.5% despite a 1.4% fall in the export volume index.
Lee Moon-hee, head of the Price Statistics Team at the Economic Statistics Bureau, explained, “In December, international oil prices have slightly fallen compared to the previous month’s average, while the USD/KRW exchange rate has risen, presenting mixed effects. The uncertainty in domestic and international conditions is significant, making it difficult to project December’s outlook.”