en.Wedoany.com Reported - South Korea's chemical material exports in March rose by 5.8% year-on-year to $3.87 billion, while overall overseas shipments surpassed the $80 billion mark for the first time. The Ministry of Trade, Industry and Energy (MOTIE) of South Korea noted that despite the increase in export value, the domestic industry is facing challenges due to conflicts in the Middle East, leading to a 17% year-on-year decline in petrochemical product shipments in the last week of March.
Naphtha exports in March fell by 22% year-on-year due to the implementation of a five-month new export restriction starting March 27, which in principle prohibits naphtha exports, allowing them only under special circumstances with ministerial approval. South Korean Trade Minister Ahn Duk-geun stated on March 31: "We made an urgent request because naphtha is the largest commodity we import from India, accounting for about 20% to 21% of South Korea's overall imports from the country." He has requested India to expand naphtha exports to South Korea to address supply disruptions related to the Middle East crisis.
South Korean companies have warned of supply disruptions, with LG Chem issuing a shipment delay notice due to disruptions in raw material supplies caused by conflicts in the Middle East. The company stated: "We will temporarily postpone shipment plans for the remaining quantities under existing contracts." LG Chem has suspended operations at its Yeosu No. 3 cracker, which has an annual ethylene production capacity of 900,000 tons. Exports from the petroleum products industry increased by 54.9% year-on-year to $5.1 billion, as soaring global oil prices were immediately reflected in refined product prices.
South Korea's overall exports in March surged by 48.3% year-on-year to $86.1 billion, driven by a significant increase in semiconductor shipments. Shipments to China led the export growth in March, rising by 64.2% year-on-year to $16.5 billion, driven by demand for memory chips. In contrast, exports to the Middle East plummeted by 49.1% year-on-year to $900 million in March due to regional conflicts limiting logistics. The growth in South Korea's petrochemical product exports and overall exports highlights the dynamic changes in the trade structure.
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