Korean Air passenger plane sits on a flight at the airport station
April exports were affected by Corona 19, which was down 24.3 percent from the same month last year to $36.92 billion. Imports were $37.87 billion and trade balances deficits of $950 million. It was only 99 months after the trade deficit turned into a deficit.
The Ministry of Industry, Trade and Energy said on April 1 that exports had been drastically reduced due to the unprecedented complex crises, including global production shutdowns (shutdowns), lockdowns and falling oil prices.
The Ministry of Industry analyzed the decrease in exports in April due to the lack of two days of operation in addition to Corona 19, and the adverse effects of the adverse effects, which were the highest level ($48.8 billion) in April last year. A 15% drop in unit prices also contributed to a significant decline in exports.
After 99 months, the trade balance turned into a deficit because of corona 19’s full-fledged increase in exports due to reduced demand for imports to major markets, while our manufacturing industry was operating normally without shutdown, increasing imports of intermediate and capital goods.
The Ministry of Industry assessed that the import structure was relatively better than in January 2009, when both exports and imports plummeted due to the global financial crisis, which caused a trade balance deficit. April’s trade balance deficit is structurally good, unlike during the recession, when energy imports increased due to oil prices and imports decreased more than exports.
■ Regional export trends
Exports to all regions, as well as the main market, have declined due to market sharp declinespurred by restrictions on movement in the U.S. and Europe and the demand for imports due to production disruptions, and the delay in china’s economic recovery.
Chinese exports fell below $400 million for the first time in a decade in February due to china’s suspension of fishing, but the slowdown in the spread tax in March-April resulted in $450 million to $460 million.
EU exports fell to $200 million, the lowest level since January 2020, as demand declined and production declined due to restrictions on movement and factory downtime by European countries. In particular, automobiles ($460 million, -21.4%), car parts ($160 million, -53.5%), general machinery ($410 million, -17.6%) and steel ($170 million, -33.3%) Sector exports declined.
U.S. exports have declined sharply since April due to the steep spread of Corona 19, which caused most stores to shut down and consumers to go out. The average daily export of $260 million in April last year was down 5.6 percent to $240 million in April this year. Smartphones ($170 million, -63.8%), automobiles ($860 million, -16.7%) and appliances ($150 million, -9.2%) the decline in exports due to sluggish consumer goods sales.
ASEAN exports also fell to $260 million, the lowest level since August 2016, due to government-level restrictions on operations and community isolation measures caused by Corona19. Exports of consumer goods such as smartphones and household appliances decreased due to a decline in demand for capital goods such as car parts and general machinery due to factory downtime and face-to-face business disruptions.
■ Detailed export trends by item
While the proportion of vehicles exported to SUVs and eco-friendly vehicles continues to rise, exports have declined by 36.3% due to the decline in demand from major markets such as the United States and Europe due to the spread of Corona 19, and the disruption of sales by overseas dealers.
Auto parts decreased by 49.6% due to the rapid proliferation of Corona 19 in key markets, declining consumer sentiment, a slowdown in the domestic car market in China, and downtime at a finished vehicle factory in Europe.
While petrochemicals have been sluggish in front-line industries such as automobiles and household appliances, the world’s petrochemical plants have been operating normally, oversupply has expanded, and the price of goods has fallen due to falling international oil prices, resulting in a 33.6% decrease in exports.
Petroleum products also fell 56.8% due to a sharp drop in global oil demand due to the spread of Corona19 and a sharp drop in export prices due to the plunge in international oil prices.
Wireless communications have reduced exports of parts due to the proliferation of Corona19, the discontinuation of related retail stores, the trend of reduced production due to signs of a long-term decline in global mobile phone demand, and the extension of overseas mobile phone assembly plants. The finished phone was $300 million, down 43.6$ and the parts involved were down 30.5 percent to $350 million.
Display also recorded a 39.1% decrease in $1 billion due to the sluggish OLED exports and the decline in LCD exports due to the reorganization of the OLED business by domestic companies due to the sharp drop in demand for TV and smartphones in China and Europe due to the proliferation of Corona 19.
Consumer electronics fell 32 percent to $420 million due to delays in global sports events such as euro 2020 and The Tokyo Olympics, a slowdown in the supply of our products due to the shutdown of consumer electronics distribution networks in North America and Europe, and a decline in demand due to restrictions on movement.
Semiconductor slumped 14.9% to $7.18 billion due to rising DRAM fixed prices, a backlash against demand for smartphones, and a reduction in pre-purchase spurred by the global slowdown.
The secondary battery remained at $570 million, which decreased 10.7 percent due to the increase in energy storage system (ESS) exports, the decrease in exports of partial goods due to the company’s extension of chemical, battery and automobile factories in the United States, and the increase in exports of batteries for electric vehicles due to the extension of the downtime of major European electric vehicle factories.
There are also items that have increased. Computers continued to grow for seven consecutive months due to the proliferation of Corona19, the activation of telecommuting, the replacement of school online classes, and the increased demand for sSDs related to e-commerce in the data center market. Exports increased 99.3 percent to $1.05 billion.
Despite the trend of lowering drug prices in china, Japan, and the United States, the biohealth sector has increased for eight consecutive months due to the proliferation of our corporate pest control products, such as corona 19 diagnostic kits, in markets such as ASEAN, THE EU, and the United States, and the demand for domestic medical device products with excellent price performance has increased steadily for eight consecutive months. Exports increased 29 percent to $190 million.
■ Strengthening the ministry of industry’s export total response
The Ministry of Industry analyzed that exports switched to positive in February for the first time in 14 months and were relatively ahead in March, but exports fell significantly in April due to a combination of global production disruptions, restrictions on movement, and a plunge in international oil prices due to the complex crisis of the unsold oil price called Corona 19.
Minister of Industry, Trade and Resources Sung Yun-mo (center) is in Chongqing, China, and Jakarta, Indonesia, to encourage our company to have difficulty transporting air freight to Corona 19 at the Terminal 1 cycle of Incheon International Airport on 29 March.
Industry Minister Yunmo Sung said, “We are acutely aware of the recent sluggish export sluggishness in Korea according to Corona 19,” and said, “We have established the “Extended Trade Strategy Coordination Meeting” presided over by the Prime Minister in February to operate a system for responding to the nation’s total power, and in April, we are also implementing additional measures to increase export vitality at the “Emergency Economic Meeting” presided over by the President.
Minister Sung said, “In order to solve the liquidity shortage that our exporting companies need most, we will provide a timely and sufficient supply of 36 trillion won of trade finance to ensure that we are able to devote ourselves to exports, and we will expand video consultation and online exhibitions by making export marketing entirely online in order to respond to strong travel restrictions and restrictions on entry.”
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