FocusS Korea October petchem exports up 22% on higher prices

23 November 2010 04:28  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s petrochemicals exports surged 22% year on year to $29.9bn (€21.8bn) in October on the back of higher product prices, with the double-digit growth trend likely to continue in November, analysts said on Tuesday.

“Product prices of petrochemicals rose due to the increase in crude oil and naphtha prices,” said Hong Chanyang, an analyst at brokerage house Shinhan Investment Corp in Seoul.

Meanwhile, exports of petroleum products grew 32.2% year on year to $3.04bn in October, also due to the surge in crude prices, he said, adding that the growth was partially led by shipments of diesel.

Export volumes of key petrochemical feedstocks ethylene and propylene fell 24.5% and 28% year on year, respectively, in October, while exports of naphtha rose 22.2%, according to statistics from the Korea International Trade Association (KITA).

Overseas shipments of benzene rose 25% year on year, while exports of ethyl acetate surged 80.3%, the KITA data showed.

Petrochemical exports were expected to show double-digit growth in November due to buoyant energy values and low base figures in the same period last year, analysts said

“Crude oil prices in November are settling higher as compared to last year,” Hong said.

The average import prices of crude oil rose to $76.7/bbl in October, compared with the $75.3/bbl seen in September, pushing up product prices of exports, according to Lee Sung-Kwon, chief economist at Shinhan Investment in Seoul.

The country’s overall exports rose 29.9% year on year in October to a record $44.1bn, due to key export industries such as semiconductors and automobiles, according to Lee.

An increased share in its major markets also helped to boost overall exports for the first 10 months of 2010, he said.

Imports from South Korea totalled 25% of China’s overall intake during the first 10 months of 2010, compared with the 23.9% registered during the corresponding period in 2009, according to Lee.

The proportion of South Korean imports into the US also rose 10.7% during the period, compared with 10.4% during the corresponding period in 2009, Lee added.

Meanwhile, imports into South Korea climbed 22.4% year on year to $37.2bn, the highest level since the worldwide economic crisis began in September 2008, buoyed by higher inbound shipments of raw materials, Lee said.

Looking ahead, Lee said that overall year-on-year export growth in November would see a slight downward adjustment compared with the 22% growth seen in October.

“Export growth should be slower than October’s, but we will continue to see double-digit growth this month [November],” he added.

Source: KITA

($1 = €0.73)

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By: Nurluqman Suratman

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