Raw Material Prices Reach Up to Highest Level

Article excerpt

Boosted by the drastic rise in prices of crude oil and petrochemical materials, the prices of raw materials and resources have continued to increase to a record level.

According to the Association of Foreign Trading Agents of Korea (AFTAK) yesterday, the prices of the related goods, which once decreased in July, showed a sharp upward trend in August, climbing up to the highest level yet.

The prices of crude oil from West Texas and Dubai rose to $31.33 and $27 per barrel, respectively.

The price of oil from Oman also surged to $27.44 per barrel, up 3.3 percent from a month earlier and up 39.8 percent from August last year.

The price of naphtha from the Middle East, a key petrochemical industrial material, also amounted to $288 per ton, an increase of 7.1 percent over the past two months and 34 percent compared to the same time last year.

Methanol from Saudi Arabia was priced at $205 per ton, up 2.5 and 64 percent month-on-month and year-on-year, respectively.

Against this backdrop, the AFTAK index, a barometer of imported raw material prices set at 100 in December 1995 as criteria, stood at 110.30 in August, up 2.36 points from a month earlier. …