For­eign or­ders edge up 1.3% in March: MOEA

The China Post - - TAIWAN BUSINESS - BY JOHN LIU

For­eign or­ders to­taled US$490 mil­lion ( NT$ 15.218 bil­lion) in March, reg­is­ter­ing 1.3 per­cent growth year-on-year, ac­cord­ing to a re­port re­leased by the Min­istry of Eco­nomic Af­fairs (MOEA) yes­ter­day.

Or­ders for the na­tion’s elec­tron­ics, in­for­ma­tion and com­mu­ni­ca­tions tech­nol­ogy (ICT) and ma­chin­ery prod­ucts con­tin­ued to grow, while or­ders for pre­ci­sion in­stru­ments, base met­als, plas­tic and chem­i­cal prod­ucts kept slip­ping.

ICT and elec­tron­ics prod­ucts, which ac­counted for more than half of to­tal or­ders, saw 12.9 per­cent and 1.5 per­cent growth in or­ders, re­spec­tively, in March.

Strong de­mand for mo­bile de­vices re­sulted in high or­ders for parts and com­po­nents as­sem­bly in re­lated sup­ply chains. There was also a strong de­mand for high-end wafer, DRAM and in­te­grated cir­cuit testing and pack­ag­ing.

Or­ders for ma­chin­ery jumped nearly 10 per­cent, sus­tain­ing 14 months of con­sec­u­tive growth. The MOEA at­trib­uted the trend to in­creased de­mand from the U.S., Europe and main­land China, and lo­cal firms ex­pand­ing in­vest­ment to ramp up pro­duc­tion in Southeast Asia.

Un­der­per­form­ing Sec­tors

Pre­ci­sion in­stru­ment or­ders plum­meted 9.6 per­cent as main­land man­u­fac­tur­ers ratchet up panel pro­duc­tion, which re­sulted in fierce price com­pe­ti­tion.

Base metal prod­uct or­ders de­clined nearly 6 per­cent largely due to steel’s over­sup­ply and the con­se­quent fall­ing prices.

Plas­tic prod­uct or­ders dropped 9.1 per­cent largely due to fall­ing prices in oil, raw ma­te­ri­als and there­fore end prod­ucts.

Or­ders for chem­i­cal prod­ucts fell 9 per­cent be­cause of re­duced oil and petro­chem­i­cal prices too. MOEA Statis­tics Depart­ment Direc­tor Lin Lee­jen ( ) noted that oil prices dropped 50 per­cent in March

from a year ago.

West­ern Mar­kets Placed More

Or­ders

With re­gards to Tai­wan’s ma­jor mar­kets, or­ders placed from the U.S. and Europe jumped 16.7 per­cent and 9.1 per­cent, re­spec­tively. More specif­i­cally, or­ders for ICT and elec­tron­ics prod­ucts saw the largest growth.

Or­ders placed from the U.S. to­taled US$ 9.91 bil­lion, mak­ing it the largest ex­port mar­ket. Or­ders placed from Europe to­taled US$7.38 bil­lion. The MOEA pointed out the amount had been grow­ing for 20 con­sec­u­tive months.

Main­land China and Hong Kong placed the sec­ond largest num­ber of or­ders from Tai­wan — US$9.69 bil­lion. How­ever, the amount dipped 3.8 per­cent com­pared with a year ago. Or­ders for chem­i­cal prod­ucts and pre­ci­sion in­stru­ment saw the largest decline.

Or­ders from ASEAN-6 coun­tries (In­done­sia, Philip­pines, Malaysia, Sin­ga­pore, Brunei and Thai­land) dipped 5.4 per­cent, of which oil prod­ucts saw greater decline.

Ja­pan’s or­ders plum­meted 22.8 per­cent, which rep­re­sented the 7th con­sec­u­tive month of neg­a­tive growth. The MOEA said Ja­pan’s or­ders for elec­tron­ics and ICT prod­ucts plunged some 35 per­cent and 26 per­cent, re­spec­tively. Or­ders for plasma TVs and lap­tops saw the great­est drop.

Or­ders to Fall in April

The MOEA’s sur­vey found 25.5 per­cent of ex­porters be­lieve or­ders will pick up in April, while 57.1 per­cent be­lieve the or­ders will stay lev­eled, and 17.4 per­cent pre­dict or­ders will fall. All in all, the MOEA fore­cast the amount of or­ders will decline in April.

CNA

Con­tain­ers are loaded onto ships dock­ing in a port, yes­ter­day. For­eign or­ders to­taled US$490 mil­lion in March, rep­re­sent­ing 1.3 per­cent an­nual growth, the Min­istry of Eco­nomic Af­fairs said yes­ter­day. For­eign or­ders grew 2.5 per­cent in the first quar­ter.

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