Taiwan's Export-Order Growth Slows Sharply in Feb.

Taipei, March 24, 2011 (CENS)--Total export orders received by Taiwan's manufacturers and traders in February were valued at US$28.87 billion, representing an annual growth of only 5.33%, the lowest of its kind in the past 16 months, according to official data released by the Ministry of Economic Affairs.

Of the total, export orders for chemical products saw the highest annual growth of 33.13% in the month, those for basic metal and machinery also surged 25.64% and 29.19%, respectively, and orders for ICT (information and communication technology) products suffered the deepest drop of 3.59%.

MOEA officials reasoned that oil price hikes, recent political unrest in Middle East and North Africa, and growing demand for chemical products for plant maintenance in Asia served to cause Taiwan's export orders for such products to surge in February.

The officials attributed the decline in export orders for ICT-based products to the Intel's Sandy Bridge chipset flaw and Japan's economic weakness, which undermined market demand for such products.

MOEA's data shows that export orders from China grew 2.7% year-on-year to US$7.369 billion, with the growth mainly led by electronic products; while orders from the U.S. also surged 16.91% to US$6.948 billion.

However, orders from Japan were valued at only US$3.151 billion for an annual decline of 10.41%, primarily because of Japan's sluggish economy. Japan's demand for steel, fresh food, electrical cables, cement and machine tools is likely to climb starting in March due to post-quake reconstruction, which will benefit Taiwanese enterprises in the coming months, stressed MOEA officials.

But, they also admitted that export orders from Japan may drop further, as local consumer demand for ICT products, which contribute greatly to Taiwan's exports to the country, will surely slacken after the devastating earthquake and tsunami ravaged northeastern Japan.