North Korea's trade with China plunged more than 10 percent in the first five months of 2015 due mainly to a drop in raw material prices, a report showed Tuesday.
  

North Korea's outbound shipments to its neighbor sank 10.3 percent on-year to $954 million in the January-May period, while imports plunged 14.3 percent to $1.09 billion, according to the report by the Korea Development Institute.

"Bilateral trade was down 12.5 percent compared to the year before with exports of anthracite coal and iron ore affecting overall numbers," KDI said. "Compared to the year before, when trade fell 4.8 percent, this year's drop is more pronounced."
  

The think tank based its assessment on data provided by the International Monetary Fund, the United Nations and the Korea International Trade Association.
 

North Korea's exports of coal to China declined 1.6 percent in dollar terms, with the number for iron ore nosediving 70.3 percent.
  

Falling exports and a subsequent drop in earnings were probably felt by Pyongyang, which will have to consider other means of generating hard currency.
  

Compared to 2013, when the North's exports of coal reached its peak, this year's numbers represent a 24.6 percent drop.
  

"The contraction is noteworthy because the North actually diversified the places it shipped coal to in China," the KDI said.
  

In regards to iron ore, exports declined, both in terms of volume and prices, with the weakening of China's steel industry directly impacting trade. Exports stood at 600,000 tons, down from 1.11 million tons, with the value standing at $22.96 million.
  

The KDI said Pyongyang's No. 1 import item from its neighbor was filament yarn, followed by cargo trucks and petroleum products. Imports of yarn and petroleum products were down, while shipments of cargo trucks rose. (Yonhap)