Increased oil prices and global demand resulted in improved performance
Recovery record after Corona 19… “A positive signal for our exports”
[에너지신문] Petroleum products such as petrochemicals and petroleum products succeeded in rebounding as they improved their earnings thanks to rising oil prices and growing global demand.
According to the February export and import trend announced by the Ministry of Trade, Industry and Energy (Minister Sung Yun-mo) on the 1st, petrochemicals grew 22.4% rapidly, showing the highest growth rate since October 2018. Although petroleum products declined 15.2%, it recorded the best decline since April last year, when the impact of Corona 19 began in earnest, giving the possibility of reversal.
Petroleum products attracted the most attention this month. In the situation of Corona 19, other items are marching positively, and in a situation that leads the export market, only petroleum products have fallen repeatedly, becoming the’reef’ that hinders the growth of the export market. I uploaded it.
An official from the Ministry of Industry also stressed, “The recovery of petrochemicals and petroleum products, which have been sluggish for a long time, is a positive sign of our exports in the future.”
It is analyzed that the improvement of petroleum products is due to the increase in global demand due to rising oil prices and the development of a Corona 19 vaccine. At this time, international oil prices (based on Dubai oil) were $60.89 per barrel, up 12.3% from $54.2 year-on-year.
In particular, the growth of petrochemicals is steep. With international oil prices starting to rebound, demand for synthetic resins used in packaging materials and home appliances is increasing due to the non-face-to-face economy, and unit prices are rising. Record, an increase of 22.4% compared to $3.1 billion in the same month of the previous year.
This is an increase of 8.6% last month, and has continued to increase for two consecutive months since it turned to positive after 26 months. The export unit price was also $1088 per ton, up 6.6% from $1021 in the same month of the previous year.
Petroleum products also declined 15.2% this month. This was caused by the fact that the export price is still below the previous year’s level and the global demand recovery is also slow. However, it is encouraging that the decline has sharply decreased as international oil prices have entered a rebound phase.
The export rate of petroleum products rose from 45.4% last month to 15.2% this month, reaching the 10% level for the first time since the impact of Corona 19. This is the best rate of decline compared to the 30-60% range since April 2020.
Experts predicted that the recovery of petroleum products will continue for the time being. This is due to expectations that product demand will increase as the Corona 19 situation improves due to rising oil prices and vaccine supply. In addition, refiners judged that the overall industrial production recovery is in place, and the improvement of refining margins is expected to continue until the first half of this year, experts judged.
On the other hand, exports in January were $44.8 billion, an increase of 9.5% from the previous year, and imports rose by 13.9% to $42.1 billion. The trade balance was $2.71 billion, recording a surplus for 10 consecutive months.
The Ministry of Industry said that even though the number of working days was 3 days short of the previous year, total exports increased. It was evaluated that it recorded remarkable achievements.
The Ministry of Industry stressed that it will do its best to get on the track for sustainable growth in the future.
Minister Sung Yun-mo said, “Although expectations for a global economy and trade recovery are growing, it is true that there are uncertainties about changes in the trade environment, such as the prolonged Corona 19 and the spread of protectionism.”
“In March, we will hold the 4th Extended Trade Strategy Coordination Meeting with relevant ministries, and we will prepare export measures for our exports and economic economy re-leap with positive exports this year.” We will discover and support strategic items to lead, and innovate support systems such as the trade system, export finance, and market development to suit the new trade environment.”
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