S Korea October petrochemical exports grow 17.6% on weak won

25 November 2011 10:57  [Source: ICIS news]

By Samuel Wong

SINGAPORE (ICIS)--South Korea’s petrochemical exports in October grew 17.6% year on year to $3.6bn (€2.7bn), thanks to the weak won and higher exports to China, an analyst said on Friday.

Data from the Ministry of Knowledge Economy showed that South Korea’s shipments of petroleum products to China for the month jumped by 66.7% year on year.

“Weak won currency led to an increase in exports to China, attributing to a rise in trade value for the petrochemical industry,” said Eungju Lee, a petrochemicals industry analyst at Seoul-based Shinhan Investment Corp.

Overseas shipments of most petrochemical products last month increased by volume on a year-on-year basis, data from Korea International Trade Association (KITA) showed.

Ethylene exports grew 48.2% to 68,571 tonnes, while propylene shipments nearly tripled to 121,411 tonnes. (Please see table below)

For aromatics, exports of benzene fell by 17.4% to 99,430 tonnes, while shipments of toluene increased 18.1% to 79,139 tonnes, the data showed.

Paraxylene (PX) exports jumped by 61.3% to 159,230 tonnes.

South Korea’s overall exports in October grew by 9.3% year on year to $47.4bn, with a trade surplus of $4.3bn, according to data from MKE.

MKE said that the country has remained in trade surplus for 21 consecutive months.

China and the Association of South East Asian Nations (ASEAN) accounted for 75.1% of South Korea’s total exports for the month, MKE said.

Exports of most of Korea’s key export items, including petroleum products, general machinery, automobiles, steel, automobile parts, household appliances, petrochemicals, computers and textiles showed good growths in October compared to the same period in 2010, according to MKE.

However, business optimism in the country slightly weakened for November, with the South Korean manufacturers’ confidence index slipping to 82 from 86 for October, according to the Bank of Korea.

“The European debt crisis negatively affected exporters and there was a time lag, which is a reason why the November Manufacturers’ confidence index fell,” said Lee of Shinhan Investment.

In a survey of 2,000 manufacturers by the Korean Chamber of Commerce and Industry, showed business confidence rapidly cooling and anxiety building up for next year’s business planning and investments on concerns of a double-dip of the world economy.

Petrochemical demand is expected to weaken because of the debt crisis in the eurozone and the weak US economy, Lee said.

EXPORTS (in metric tonnes)
PRODUCT	October  '11	October '10	% Change YoY
Naphtha	255,147	390,185	-34.61
Ethylene	68,571	46,274	48.18
Benzene	99,430	120,330	-17.37
Polypropylene	78,279	63,936	22.43
Polyethylene	89,995	94,322	-4.59
LLDPE	42,959	47,850	-10.22
LDPE	24,766	21,741	13.91
HDPE	89,995	94,322	-4.59
Toluene	79,139	67,026	18.07
Propylene	121,411	46,044	163.68
Butadiene Rubber	26,374	21,101	24.99
Buta-1,3-diene and isoprene	18,437	22,956	-19.69
Styrene	142,511	126,646	12.53
Paraxylene	159,230	98,737	61.27
PET	77,561	77,395	0.21
Mixed Xylene Isomers	32,619	49,447	-34.03
PTA	318,383	285,925	11.35
MMA	2,977	154	1,833.12
PMMA	8,774	9,384	-6.5
Orthoxylene	13,602	12,736	6.8
Expansible polystyrene	10,628	12,832	-17.18
Acrylonitrile	11,286	17,597	-35.86
Polycarbonate	28,839	29,366	-1.79
Ethyl Acetate	523	1,592	-67.15
Vinyl Acetate Monomer	4,022	6,281	-35.97
Paraffin Wax (slack wax and scale wax)	626	847	-26.09
P-wax with less than 0.75%	108	66	63.64
PVC (not mixed with other substances)	53,337	47,444	12.42
PVC (non-plasticised)	233	189	23.28
PVC (plasticised)	2,273	2,199	3.37
PVC (In aqueous dispersion)	18	8	125

Source: KITA

 

($1 = €0.75)

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections

By: Samuel Wong

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.

Printer Friendly