Tai­wan steel ex­ports fall al­most 20 per­cent

The China Post - - LOCAL -

Tai­wan’s steel ex­ports for the first half of this year fell al­most 20 per­cent as over­sup­ply sent prod­uct prices into a tail­spin, ac­cord­ing to the Min­istry of Eco­nomic Af­fairs (MOEA).

The MOEA said that ex­panded steel pro­duc­tion ca­pac­ity in China, one of the largest steel sup­pli­ers in the world, has ex­ac­er­bated the global sup­ply glut, adding that the im­pact from the over­sup­ply was more vis­i­ble in the Asia-Pa­cific re­gion.

The min­istry said that as the world’s econ­omy showed signs of weak­en­ing, de­mand for steel prod­ucts has been on the de­cline, drag­ging prod­uct prices even lower, which hit ex­ports of Tai­wan’s steel ex­ports hard over the past six months.

Sta­tis­tics com­piled by the MOEA show that from Jan­uary to June steel ex­ports fell 19.4 per­cent yearon-year to US$4.3 bil­lion.

China, which is the largest buy­ers of Tai­wan’s steel ex­ports, ac­count­ing for 13.7 per­cent of to­tal out­bound sales, ahead of the United States with 12.8 per­cent and Ja­pan with 6.7 per­cent, the data in­di­cated.

Dur­ing the same pe­riod, steel ex­ports to China fell 17.7 per­cent from a year ear­lier fol­low­ing the im­po­si­tion of ad­di­tional du­ties on steel prod­uct im­ports in July 2014 by the Chi­nese gov­ern­ment, the MOEA said.

Tai­wanese steel ex­porters have also been im­pacted by the de­pre­ci­a­tion of the Ja­panese yen over the past six months, which has re­sulted in a 24.3 per­cent de­cline in ex­ports to that coun­try from a year ear­lier, the min­istry added. Ex­ports to the U.S. fell 0.5 per­cent year-onyear.

Tai­wan’s steel im­ports for the first half of this year to­taled US$4.2 bil­lion, down 17.2 per­cent from a year ear­lier, the MOEA data showed.

The min­istry said that Ja­pan was the largest steel sup­plier to Tai­wan, ac­count­ing for 30.7 per­cent of to­tal im­ports, fol­lowed by China with 25.4 per­cent, Rus­sia with 8.1 per­cent and the United States with 7.3 per­cent.

In the first five months of the year, pro­duc­tion value in the lo­cal steel sec­tor fell 9.7 per­cent from a year ear­lier to NT$464.1 bil­lion (US$14.64 bil­lion), the MOEA said. Of the many steel prod­uct cat­e­gories, hot rolled steel plate mak­ers suf­fered the steep­est de­cline in out­put, which dropped 21.6 per­cent from a year ear­lier to NT$99 bil­lion, the min­istry added.

The pro­duc­tion in­dex for the lo­cal steel in­dus­try fell 2.1 per­cent year-on-year for the first five months of the year to 98.46, with the sub-in­dex for the hot rolled plate seg­ment down 7.7 per­cent from a year ear­lier, the MOEA data showed.

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