cens logo

Taiwan's Overall Exports in March Plummet 8.9% YoY to US$25.27 Bn. on Weak Oil Price

Apr 15, 2015 | By Steve

Mainly dampened by weak international crude oil prices that hover around US$50 a barrel, coupled with growth slowdowns in exports by Taiwan's electronics suppliers, Taiwan's overall exports plummeted 8.9 percent year-on-year (YoY) to only US$25.27 billion in March, stirring fears that the island's 2015 exports may fail to grow as high as 1.03 percent YoY as forecast by the government, according to the latest report by Ministry of Finance (MOF).

MOF indicates that the said export drops are widespread over local industries, including staple suppliers of transportation equipment, machinery, base metal and related products.

The report shows that exports of machinery, transportation equipment, base metals and metallic products, textiles and optical devices declined 5 percent, 10.7 percent, 10.3 percent, 6.7 percent and 10.3 percent, respectively, YoY in the month; and those of plastic and rubber, chemical and mining products dived 7.9 percent, 14.5 percent and 47.1 percent, to which, MOF stresses, record-setting low crude oil prices were attributable.

As can be reasonably expected after many months of declines in global crude oil prices that have prompted layoffs and cutbacks in new projects by major oil explorers, Taiwan's exports of mining products and chemicals both have continuously dropped for 7 consecutive months.

Flat growth in exports of electronic and ICT (information and communication technology) products, which together make up the majority of total exports, also added salt to injury. MOF points out that Taiwan's exports of electronics and ICT products totaled only US$8.136 billion and US$1.132 billion, respectively, inching down by 0.2 percent and 0.7 percent.

MOF officials emphasize that exports by the electronic industry declined the first time after 24 consecutive months of growths, mainly due to a whopping drop of 44.5 percent in solar cell exports, which offset a 5.3 percent increase in exports of integrated circuits that typically command a dominant share of the total in the industry.

As a result, overall exports in Q1 declined the first time by 4.2 percent after five successive quarters of growths, with the drop in March exports being the deepest since August, 2012.

As for imports, March's totaled US$21.2 billion for a 17.6 percent YoY decline, including those of capital equipment and agricultural and industrial products, down 19.5 percent and 20.6 percent, respectively, YoY. In contrast, imports of consumer goods surged yearly 6.2 percent, with the growth mainly led by imports of sedans, which soared 19.5 percent, shows MOF's report. For Q1, overall imports amounted to US$56.83 billion, down 15 percent YoY.

Taiwan posted a Q1 trade surplus of US$13.42 billion, US$6.94 billion more than the same period of last year, according to MOF.

Mixed Results
While Taiwan's March exports turned out to be disappointing to the export-driven economy, the overall export picture shows some upbeat stories.

According to MOF, exports to Taiwan's top-five destinations, including Europe, China (including Hong Kong), and the six ASEAN nations (the Philippines, Vietnam, Thailand, Malaysia, Singapore and Brunei), all showed drops ranging 7-14 percent in the month, except the U.S., to which exports reached US$2.95 billion to be US$1 million more than a year ago as well as growth for the 15th straight month, with that to Japan also edging up 0.2 percent.

MOF notes that of the total exports to the U.S., electronic exports showed the strongest growth of 7.7 percent, trailed by a 6 percent increase in those of base metals and related products, which were contrasted by exports of machinery stateside that plunged 18.5 percent YoY.

Despite the major stock markets in the EU bloc having risen sizably in Q1 due to ECB's (European Central Bank) quantitative easing, along with Greece making progress to negotiate with the International Monetary Fund to repay loans and undertake financial reforms, Taiwan's exports to the regional market, however, still plummeted 13.6 percent YoY in the month.

Taiwan’s exports to the U.S. rise for the 15th straight month in March (photo courtesy of UDN.com).Taiwan’s exports to the U.S. rise for the 15th straight month in March (photo courtesy of UDN.com).

Taiwan's Exports by Category During Q1, 2015
Category
Export Value in March
YoY Growth Rate
Export Value for Q1
YoY Growth Rate
Electronics
US$8.136 Bn.
-0.2%
US$23.189 Bn.
5.5%
Base Metal and Related Products
US$2.277 Bn.
-10.3%
US$6.520 Bn.
-5.6%
Plastics & Rubber
US$1.979 Bn.
-7.9%
US$5.254 Bn.
-9.6%
Chemicals
US$1.784 Bn.
-11.2%
US$4.725 Bn.
-14.5%
Machinery
US$1.743 Bn.
-5.0%
US$4.879 Bn.
4.0%
Optical Devices
US$1.597 Bn.
-10.3%
US$4.379 Bn.
-0.9%
ICT Products
US$1.132 Bn.
-0.7%
US$2.791 Bn.
0.5%
Mining Products
US$1.099 Bn.
-47.1%
US$3.073 Bn.
-47.8%
Textile
US$1.037 Bn.
-6.7%
US$2.655 Bn.
-3.3%
Transportation Equipment
US$1.011 Bn.
-10.7%
US$2.900 Bn.
3.7%
Source: Ministry of Finance


Industry Reports

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry </h2>

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry

Oct 20, 2020

Foxconn is looking to explore cooperation with European tier 1 auto parts suppliers in developing 3D auto-use curved glass covers. The electronics manufacturer is also reportedly engaging in talks with European auto firms to make curved, one-piece system consoles and dashboards. In a bid to diversify its product line, Foxconn's plans to enter the lucrative auto parts industry began with provid...


(File cabinets, photo courtesy of Chyn Fuh Enterprise Co., Ltd.)

Taiwan's Furniture Industry Amid the COVID-19 Pandemic

Oct 16, 2020

The COVID-19 pandemic has deeply affected global and Taiwan's political and economic landscapes. Unlike some industries, the furniture sector did not escape unscathed, facing a squeeze from management and costs. While Taiwan continues to implement a stable, successful outbreak response, the industry has also misjudged the economic downturn duration. The furniture industry has yet to fully recover...


2020 Energy Vision Summit for Green Energy to Kick off in Nov.</h2>

2020 Energy Vision Summit for Green Energy to Kick off in Nov.

Oct 14, 2020

The Taiwanese government has pledged to lead the effort in further developing the sustainable green economy, which is among the sectors highlighted in the Tsai administration's "5+2 Innovative Industries Initiative." Economic Daily News is hosting the "2020 Energy Vision Summit - Green Energy 2.0" on November 11. As one of the government's core policies, improving the island's energy self-suff...



Industry In-Focus

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry </h2>

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry

Oct 20, 2020

Foxconn is looking to explore cooperation with European tier 1 auto parts suppliers in developing 3D auto-use curved glass covers. The electronics manufacturer is also reportedly engaging in talks with European auto firms to make curved, one-piece system consoles and dashboards. In a bid to diversify its product line, Foxconn's plans to enter the lucrative auto parts industry began with provid...


China's Strong Auto Market to Buoy Taiwan's Related Industries</h2>

China's Strong Auto Market to Buoy Taiwan's Related Industries

Oct 19, 2020

Taiwan's auto parts market has seen positive impacts as the Chinese automotive market continues to grow in its sixth consecutive month. Hotai Motors and Yulon Nissan Motor are the two significant firms enjoying the leverage. The island's related industries are benefiting from the strong performance of China's automotive market. Industry members say as long as competitive Taiwanese firms mainta...


Foundry Supply in a Pickle Amid Surging Demand Due to Pandemic and Restrictions</h2>

Foundry Supply in a Pickle Amid Surging Demand Due to Pandemic and Restrictions

Oct 19, 2020

Industry experts expect to see challenging times ahead for production in the foundry sector, forecasting that the current situation will not let up in the short-term and warns of unbalanced supply-demand next year. During the pre-pandemic era, IC design firms say clients usually made urgent orders to avoid having to manage inventory. Yet, considering limited foundry production volume, clients ...



Supplier News

(Electric Vehicle-Photo courtesy of CENS)

Microtest: Precise, Reliable, and Always Improving

Oct 16, 2020

Eyes Stake in 5G Industry with Impedance Analyzer 6632 With greater demand for electronics and manufacturers' need for more precise and diverse applications than before, testing equipment that ensures the reliability, safety, and quality of parts are in hot demand. Founded in 1993, Microtest Corp. is a professional maker and developer of high precision and automatic testing and measurement ins...


(Photo courtesy of Ho Shuan Enterprise Co., Ltd.)

Ho Shuan is Your Choice for Educational Furniture and More

Oct 16, 2020

Insisting that its customers are always a top priority, Ho Shuan Enterprise Co., Ltd.'s R&D team provides the best educational furniture and peripherals, computer tables, and desks to meet all customer requirements. Established in 1986, Ho Shuan has experienced recent sluggish local market performance, but eventually rebounded and came back better than ever. Despite difficulties, the firm neve...

HO SHUAN ENTERPRISE CO., LTD.


(S16-M01 Short Swivel-Handle Cabinet, photo courtesy of Chyn Fuh Enterprise)

Chyn Fuh: A Quality OA Metal Furniture Maker

Oct 16, 2020

Chyn Fuh Enterprise, founded in 1993, entered the market with the sole aim of offering other OA metal furniture options for customers. Since its inception, Chyn Fuh has focused on designing and producing OA metal furniture, providing various office use products, including file cabinets, storage cabinets, office desks, and different assistive metal products. Chyn Fuh partook in many government ...

CHYN FUH ENTERPRISE CO., LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...



Exhibition Highlights

Gearing up for Post-COVID Recovery, THS Coming Soon in October</h2>

Gearing up for Post-COVID Recovery, THS Coming Soon in October

Oct 07, 2020

As the only hardware and hand tools trade show taking place this year globally, the three-day Taiwan Hardware Show (THS) will soon kick off on 13th October at the Taichung International Exhibition Center. Positive industry outlook for the post COVID-19 era has led to over 370 companies signing up as exhibitors, in a bid to gear up for a long-awaited economic recovery and plan the next strategic m...


Stable Development and Popular Fastener Show in China</h2>

Stable Development and Popular Fastener Show in China

Sep 11, 2020

Driven by market prospects, domestic and international exhibitors actively prepare International Fastener Show China in Shanghai on November 3-5, 2020. Suffering from global epidemic and quarantine nearly half year, exhibitions are hot and popular in mainland China. Thousands of visitors join and visit the exhibitions with inquiries, and are eager to know new technology. Domestic and inter...


2020 Medical Taiwan to Host In-Person and Virtual Events</h2>

2020 Medical Taiwan to Host In-Person and Virtual Events

Sep 10, 2020

2020 Medical Taiwan is slated to kick off on Oct. 15 to Oct 17 at Nangang Exhibition Hall 2. Aside from events at the show, show organizer Taiwan External Trade Development Council (TAITRA) is also hosting the “Medical Taiwan Virtual” online edition at the same time due to travel restrictions impacted by the COVID-19 pandemic. The virtual edition will present 200 exhibitors and over 700 medic...