Output of Taiwan’s fastener industry expanded strongly in Q2

Output of Taiwan’s fastener industry expanded strongly in Q2. With the global economy warming up, the Taiwanese fastener industry has accelerated its recovery over the past year and is expected to see its annual output return to pre-recession levels this year. Statistics compiled by the Industry & Technology Intelligence Service (ITIS) show that the industry’s total output was worth NT$28.2 billion in the second quarter of this year, up 17% from the first quarter and equal to more than 35% of last year’s annual total of NT$75.8 billion. The industry also increased its exports in the second quarter, to NT$25.5 billion. Exports have now grown steadily for four consecutive quarters, beginning when global economic prospects began brightening in the second half of 2009. ITIS statistics also indicate that during the first five months of this year, 35% of all exports of Taiwan-made fasteners went to the U.S., 8% to Germany, 5% to Japan, and 4% each to the Netherlands and China. These top five overseas markets together absorbed over half of all shipments. In quantity, Taiwan’s exports to the U.S. increased 46% year-on-year during the second quarter but were still 18% less than the figure for the same period of 2008. Shipments to the EU however, soared over 80% to a total that was 19% higher than the same period of 2008. This growth, ITIS explained, was driven mainly by the EU’s policy of imposing punitive tariffs on Chinese fasteners, a move which has prompted some importers to turn to Taiwan as an alternative source of supply. Meanwhile, the industry’s imports were valued at around NT$900 million in the second quarter, almost equal to the corresponding figure for the first quarter, with 52% of the total coming from Japan, 15% from the U.S., 11% from China, 6% from Germany, and 3% from Vietnam. This indicates, to some extent, that although Taiwan ranks among world’s top five fastener producers by output and has managed to go upmarket for years, the island still has to import top-end fasteners from advanced countries such as Japan. ITIS reports that the fastener industry’s production value for the first half of this year surged by 51% year-on-year to NT$52.3 billion. Exports and imports for the first half were worth NT$47.3 billion and NT$1.9 billion, respectively, representing growth rates of 51% and 27%. Sales of fasteners in Taiwan’s domestic market expanded by 44% during the first six months to NT$6.9 billion, reflecting the strong vigor of the island’s recovering economy; according to a projection by the Directorate-General of Budget, Accounting and Statistics, economic growth for the year as a whole will reach 8,24%.