Dubai crude falls 2.6%, won-dollar rate drops 1.6%

November oil prices down 13%, adding further downward pressure

Export volume index surges 43.9% — an all-time high

The won-dollar exchange rate is displayed on a board at the Hana Bank dealing room in Jung-gu, Seoul, on Thursday. [Yonhap]
The won-dollar exchange rate is displayed on a board at the Hana Bank dealing room in Jung-gu, Seoul, on Thursday. [Yonhap]

Import prices fell last month for the first time in a month as the won-dollar exchange rate and international oil prices dropped simultaneously.

According to the Bank of Korea's preliminary report on export and import price indexes and trade indexes for October 2026, released Friday, import prices measured in won fell 1.8 percent from the previous month. Import prices had declined for three consecutive months from June (down 4.2 percent) through August (down 2.2 percent) before rebounding 1.9 percent in September, then reversed course again after just one month. Compared with the same month a year earlier, import prices were up 13.5 percent — a smaller gain than the 17.8 percent recorded in September.

"Import prices fell mainly in mining products and primary metal products as the exchange rate and international oil prices declined," said Jeong Jae-hun, a senior official at the Bank of Korea's price statistics team.

The monthly average price of Dubai crude fell 2.6 percent last month to $110.7 per barrel, down from $113.7 the previous month. That is still 70.4 percent higher than a year ago. Over the same period, the monthly average won-dollar rate weakened 1.6 percent, from 1,359 won to 1,337.7 won per dollar.

Breaking down import prices by end use, raw materials fell 3 percent from the previous month, led by a 3 percent drop in mining products including crude oil. Intermediate goods slipped 1 percent: gains in coal and petroleum products (up 3.5 percent), including bunker C oil (up 14.3 percent), were offset by declines in primary metal products (down 4.2 percent), including refined aluminum (down 8.5 percent), and electrical equipment (down 3.4 percent), including secondary batteries (down 6.3 percent). Capital goods and consumer goods fell 1.8 percent and 1.4 percent, respectively, from the previous month.

Downward pressure on import prices is expected to intensify this month. Lee Heung-hu, head of the price statistics team, said of the November outlook: "Although the won-dollar exchange rate edged up from Nov. 1 through Nov. 11, international oil prices fell 13 percent over the same period, which is expected to act as a downward factor for import prices."

The export price index rose 0.7 percent from the previous month, turning positive for the first time in three months, driven by higher prices for computers, electronics and optical instruments despite the weaker exchange rate. Year on year, the index was up 36.7 percent.

By category, manufactured goods rose 0.7 percent from the previous month. Computers, electronics and optical instruments gained 3.7 percent, led by DRAM (up 5.5 percent), while primary metal products fell 3.1 percent — including silver bullion (down 12.3 percent) — and transport equipment dropped 2 percent, including RV vehicles (down 1.9 percent). Agricultural, forestry and fishery products rose 1.8 percent, driven by fresh seafood (up 26.3 percent).

Turning to trade indexes, the export volume index surged 43.9 percent year on year last month — an all-time high — as shipments of semiconductors, computer memory devices and other computers, electronics and optical instruments expanded, along with machinery and equipment including semiconductor manufacturing machines. The export value index rose 107.6 percent.

The import volume index climbed 14.9 percent year on year, boosted by increases in semiconductors, computers, semiconductor manufacturing equipment and pharmaceuticals, while the import value index rose 36.6 percent.

The net barter terms of trade index, which measures the quantity of imports that can be purchased with one unit of exports, rose 21.3 percent year on year as export prices gained 44.3 percent and import prices rose 18.9 percent compared with the same month a year earlier. The pace of increase narrowed for the second consecutive month.

The income terms of trade index, which measures the volume of imports that can be financed by total export revenue, rose 74.6 percent year on year as both the net barter terms of trade index (up 21.3 percent) and the export volume index (up 43.9 percent) advanced. The index set a new all-time high for the third consecutive month.


kimstar@heraldcorp.com