Korea's Exports of Polyester Filament Fabrics Depressed by Lower Demand on Int'l Markets
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Korean exports of polyester fabrics to China continued to fall in the first semester of 2005, reflecting a slowdown in demand for Korean polyester fabrics on Asian markets. Sales to Saudi Arabia continued to surge limiting the decrease in Korea's total shipments in the first half year of 2005.
China's demand for Korean polyester fabrics continued to weaken in the first semester of 2005, as indicated by the lastest trade data provided by Korea International Trade Association (KITA).
Shipments of Korean dyed polyester fabrics made from textured yarns (HS 540752) to China declined 32% in Feburary and 11% in June 2005. There was a decrease of 7% in total in the first semester of 2005. However, on the Chinese market, a surge was observed in April with a rise of 3% and 5% in May.
The level of monthly shipments to China remained relatively high with 836,734 kilos in May and 835,295 in June 2005.
A slight decline on US market
The US market became the second largest for Korean dyed polyester fabrics in the first semester of 2005. Sales to the United States fell just 0.35% in this period in volume terms. There was a decline of 5% in value terms due to the decrease of unit value on the US market.
Exports to Hong Kong continued to decline more substantially. Sales to Hong Kong were down 16% in volume terms over the first semester of 2005. Hong Kong only accounted for 7.9% of total shipments of Korean dyed polyester fabrics over the same period, as a result.
Shipments to Dubai also dropped, in contrast with the surge in 2004. There was a decline of 30% in volume terms over the January-June period, even down 25% in value terms to US$9 million.
As a consequence, the U.A.E market became the fifth largest market for Korean polyester, compared to the second position last year.
Sales to Vietnam, Indonesia, Turkey, Sri Lanka and Germany similarly continued to decline due to the lower demand from these countries.
Surge on Saudi Arabia market
In sharp contrast, demand from Saudi Arabia is surging.
Shipments to Saudi Arabia were up 31% in volume terms to 1,013,433 kilos over this period. In June, sales to the Kingdom arrived at 232,588 kilos with an increase of 27% in volume terms compared to June 2004, reflecting the strenth in current demand.
Prices grew
Prices of Korean dyed polyester increased slightly on average to US$7.59 per kilo, there was a rise of 8% compared to the average price of last year.
Unit value of shipments to China rose more than 9%, however, to US$9.74 per kilo, reflecting an explosion of polyester demand in China
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