Brent crude has moved below $100 a barrel as an improved Middle East supply outlook reduced the risk premium. Korean manufacturing costs will not fall at the same speed: currencies, inventory, contracts, refining margins and freight determine pass-through.
- Brent at $99.92 and WTI at $95.33
- USD/KRW alongside naphtha, resin and freight
- Inventory days and each material's price-reset formula
The pass-through sequence
Fuel and some petrochemical feedstocks can react relatively quickly. Electricity tariffs, plating chemicals, engineering plastics and processing costs usually lag. A stronger dollar can also reduce savings in won terms.
Purchasing and quotation rules
Separate oil exposure and reset timing by product when negotiating with customers.
Start with demand, lead time and safety stock; use staggered purchasing to reduce volatility.
Review earlier cost absorption before automatically passing through all lower energy and freight costs.
BIZPECTRA View
The move below $100 is directionally positive, not yet proof of structurally cheap oil. Recalculate contribution margin by product under oil ±10% and FX ±3%, then clarify quotation validity and adjustment clauses.
We separate material, plating and logistics costs by item and connect them to quotation and sourcing strategy.