October Export Volume Soars 43.9%... Record-High Export Performance
Driven by strong semiconductor exports, export volume last month rose 43.9% from a year earlier, marking the largest increase on record. According to export and import price indices and trade indices (statistics measuring changes in export/import volumes and prices) released by the Bank of Korea on the 13th, export performance reached an all-time high. The growth in the export volume index widened for two consecutive months, following 25.9% in August and 32.2% in September.
The key drivers of the volume increase were semiconductors, computer memory devices, and display panels. The export volume index for computers, electronics, and optical equipment rose 51.2% from the same month last year, while machinery and equipment climbed 38.7%.
With rising prices added to growing volumes, the export value index surged 107.6% from a year earlier, more than doubling from the same month last year. The growth rate expanded from 75.9% in August and 89.4% in September to 107.6% in October. The export value index for computers, electronics, and optical equipment jumped 214.8%.
The income terms of trade index, which indicates how much goods can be imported with the earnings from exports, rose 74.6% from the same month last year, posting the largest increase on record for the relevant statistics. The increase widened for three consecutive months, following 59.9% in August and 65.8% in September. The net barter terms of trade index rose 21.3%, as export prices rose 44.3%, outpacing the rise in import prices (18.9%). However, the increase narrowed from September (25.4%), as the growth in semiconductor export prices slowed from 182.0% to 159.8% while the rise in international oil prices was factored into larger import price gains.
Export prices turned higher for the first time in three months. The October export price index stood at 184.15 (2020=100) in won terms, up 0.7% from the previous month. Although the won-dollar exchange rate fell, rising semiconductor prices offset the decline. Export prices for computers, electronics, and optical equipment rose 3.7% month-on-month, while DRAM prices climbed 5.5%. Compared with the same month last year, DRAM prices were up 199.4%. In contrast, prices of primary metal products fell 3.1% and transport equipment dropped 2.0%.
Import prices reversed course to decline after one month. The October import price index stood at 156.86, down 1.8% from the previous month. After rising 1.9% in September, prices fell again as both the won-dollar exchange rate and international oil prices dropped. The average won-dollar exchange rate fell 1.6% from 1,359.00 won in September to 1,337.66 won in October, and over the same period Dubai crude fell 2.6% from $113.71 to $110.73 per barrel. The effect of falling crude prices spread across imported goods overall. Import prices of raw materials fell 3.0% from the previous month, while intermediate goods, capital goods, and consumer goods declined 1.0%, 1.8%, and 1.4%, respectively. However, despite the month-on-month decline, import prices remained 13.5% higher than the same month last year.
According to the same statistics, the October import volume index rose 14.9% from a year earlier on increased imports of semiconductors, computers, semiconductor manufacturing equipment, and pharmaceuticals, while the import value index also climbed 36.6%. With both exports and imports growing, the overall scale of trade expanded.
