Ex­ports fall for eighth straight month, says MOF

The China Post - - TAIWAN BUSINESS - BY ENRU LIN

Tai­wan’s ex­ports fell for an eighth straight month in Septem­ber, con­tract­ing 14.6 per­cent year on year to US$22.54 bil­lion, ac­cord­ing to a Min­istry of Fi­nance (MOF, ) re­port re­leased yesterday.

Septem­ber’s ex­port value is the low­est since Oc­to­ber 2010 if ex­clud­ing months tem­pered by the Lu­nar New Year Fes­ti­val, said Yeh Maan-tzwu ( ), di­rec­tor of the Fi­nance Min­istry’s sta­tis­tics depart­ment.

The of­fi­cial at­trib­uted last month’s drop to a patchy re­cov­ery of the global econ­omy, a down­swing in agri­cul­tural and in­dus­trial prices and dis­rup­tions to air and sea links caused by Typhoon Du­juan.

‘Reached the nadir’: MOF

So far this year, to­tal ex­port value has reached US$212.5 bil­lion, 9.4 per­cent less com­pared to the same pe­riod in 2014.

“Par­tic­u­larly since June, Tai­wan’s ex­port sit­u­a­tion has not been ideal, with the 4.2-per­cent ex­port de­cline in the first quar­ter widen­ing to 9.8 per­cent in the sec­ond and 13.8 per­cent in the third,” she said.

“I be­lieve that we have reached the nadir.”

Yeh said that though the ex­port slump in the fourth quar­ter is likely to ease, turn­ing it to pos­i­tive growth would prove a chal­lenge.

“We would need to work very, very, very hard for it to turn pos­i­tive — I said that three times,” Yeh told re­porters in a press con­fer­ence in Taipei.

The Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Corp. (TSMC,

) has told the min­istry that pres­sures re­lated to in­ven­tory di­ges­tion should ease only by the end of the fourth quar­ter.

Ac­cord­ing to TSMC chief ex­ec­u­tive Mor­ris Chang ( ), rev­enue in elec­tron­ics may be­gin to im­prove only by the first quar­ter of next year, Yeh said.

Elec­tron­ics Slide, Min­er­als Worst Hit

In Septem­ber, dou­ble- digit losses were recorded in 10 of 11 ex­port tron­ics.

Min­eral prod­ucts were the worst hit, plung­ing by 46.8 per­cent to US$950 mil­lion in Septem­ber.

Op­to­elec­tron­ics ex­ports fell 20.5 per­cent year on year to US$1.31 bil­lion, and chem­i­cal prod­ucts were down 24.9 per­cent to US$1.30 bil­lion.

Elec­tron­ics, Tai­wan’s main ex­port prod­uct, fell by about 10 per­cent year on year with losses in diodes, stor­age media and printed cir­cuit boards.

So­lar cells were the sole bright spot for elec­tron­ics ex­ports, ris­ing slightly by 2.9 per­cent to NT$10 mil­lion.

“So­lar cell ship­ments were poor through the first half of the year,

cat­e­gories

in­clud­ing

elec- but from July they have been en­joy­ing three con­sec­u­tive months of pos­i­tive growth,” Yeh said.

“The data we have in­di­cate that global de­mand and prices have sta­bi­lized.”

Trans­porta­tion equip­ment ex­ports also emerged un­scathed, ris­ing 8.5 per­cent to US$1 bil­lion.

Ex­ports ac­count for about 75 per­cent of the Tai­wan econ­omy, ac­cord­ing to latest min­istry data.

Ship­ments des­tined for China and Hong Kong, which com­bined make up Tai­wan’s largest trad­ing part­ner, fell 17.1 per­cent in Septem­ber from Au­gust.

Im­ports in Septem­ber also recorded a loss, fall­ing 6 per­cent year on year to US$2.8 bil­lion, the min­istry said.

Enru Lin, The China Post

Yeh Maan-tzwu ( ), di­rec­tor of the sta­tis­tics depart­ment of the Min­istry of Fi­nance, re­ports on the latest ex­port fig­ures in Taipei, yesterday.

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