24 February 2010 06:30 [Source: ICIS news]
By Nurluqman Suratman
SINGAPORE (ICIS news)--South Korea’s petrochemical exports recorded a 27% year-on-year jump in January, with shipments to China, the country’s biggest market, surging nearly 90% in spite of the Chinese authorities’ crackdown on rapid loan growth, analysts said on Wednesday.
“For the first 20 days of January, exports (of petrochemicals) to ?xml:namespace>
A substantial portion of the PMMA went to
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The bulk or 60% of
The latest trade data indicated that
Exports into China would likely maintain their current strong momentum for some time as the Chinese government looked set to tighten liquidity “on a gradual basis” to ensure its economy would grow at 9.5-10% this year, Lee said.
But the January figures may be insufficient to predict the short-term impact of
“We would have to see the figures in February and March. But export growth rate in the first half of the year is expected to be better than the second half,” Lee said.
Seasonal considerations could also have led to the surge in January exports, said Kim of Woori Investments and Securities.
“Seasonally, in the couple of weeks before the Lunar New Year, petrochemicals exports to China increase as buyers want to stockpile inventories,” Kim said.
The Chinese market was on holiday the whole of last week for the Lunar New Year celebrations.
February may see a strong surge in South Korean petrochemical exports into China on a year-on-year basis given the low base in the same period in 2009, when producers operated their plants at reduced capacity due to the economic downturn, said Kim from Woori Securities.
Exports to the US over the same period, however, declined by around 12% while shipments to countries in the European Union (EU) fell by almost 28%, he added.To discuss issues facing the chemical industry go to ICIS connect
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