19 February 2009 05:07 [Source: ICIS news]
By Terence Teo
SINGAPORE (ICIS news)--Some of South Korea’s petrochemical producers have been boosting exports just to generate sales amid a heavy slump in domestic demand, industry analysts and sources said on Thursday.
The sharp depreciation of the won due to the country's mounting economic problems helped make prices of its petrochemical exports more competitive, providing some support to exports although external demand is also weak, they said.
Based on January data from the Korean International Trade Association (KITA), there was a significant year-on-year growth in shipments of some of petrochemical products, including toluene and polyvinyl chloride (PVC).
“The surge in exports is due to the push among South Korean producers to increase their export volumes to make up for the shrinkage in domestic sales,” one industry source said.
Exports of toluene soared 143% to 71,873 tonnes last month from the corresponding period last year, while propylene shipments climbed 66% to 49,241 tonnes. The country also sold 93% more PVC abroad totaling 67,013 tonnes in January compared to the same period a year earlier, according to KITA.
“The recent depreciation of the Korean won has attracted ?xml:namespace>
But demand for downstream styrenics in the key Chinese market had been soft.
On a month-on-month basis,
The South Korean economy is expected to shrink for the first time in more than a decade in 2009 as its western trading partners - the US and
“The Korean government is currently working on bringing the domestic construction segment back to shape, as part of their strategy to boost local demands,” Im said.
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|