Korea : Polyester Yarn Exports Drops Sharply

Due to the slowdown in Asia's textile production the textured polyester yarns of Korea declined sharply in March and April. Sales were also affected due to growing polyester prices and SARS epidemic.

After slightly rising in 2002, shipments of Korea's textured polyester filament yarns (HS 540233) were down nearly 15% in volume terms in the first four months of the year.

The fall in exports is partly due to a surge of polyester prices at the beginning of the year with average unit value up 60% in January from the same month of 2003, before rising only 19% in April.

From US$2.50 per kilo in January, average export price increased to US$2.62 in February before declining to US$2.21 in March and US$2.18 in April.

By far Korea's largest destination, China dramatically reduced its orders at the beginning of the year. Shipments were still up 59% and 35% in January and February respectively, before suddenly falling 37% in March. Exports to China were only down 1.31% in April in volume terms, announcing a possible rebound in May.

As a result of SARS outbreak, there were no exports at all to Hong Kong in April although shipments dramatically surged in the first quarter.

Exports to the United States fell more than 50% in value and volume terms in the first quarter, negatively affecting the level in total exports. The US is the second largest destination of Taiwan's polyester textured yarns after China. Shipments had boomed in 2002, being up 582% and 356% in volume and value terms, respectively.