International energy prices continued to rise: The monthly average prices of crude oil and fuel coal in February 2022 both rose sharply compared to the same period of 2021. Russia is one of the major oil producer in the world and the third largest coal exporter, at the same time. The tense geopolitical conflict between Russia and Ukraine has increased the risk of interruption of crude oil supply, and coupled with the cold weather factors, the prices of oil and fuel coal has risen.
Taiwan’s exports in January 2022 reached US$39.98 billion, with an annual growth rate of 16.7%. Due to the continuous recovery of global economy, the booming demand for emerging applications technology opportunities such as 5G communications, high-performance computing and automotive electronics, as well as the high prices level in international raw material markets, which drove Taiwan’s export continued to grow with double-digit.
The imports amounted to US$35.07 billion in January 2022, with an annual growth rate of 24.5%. Due to the strong export-derived demand, the continued high prices in international raw material markets, and the effect of replenishment before the Lunar New Year, boosted the growth of imports.
Observations on the trade performance of Taiwan and its major trading partners:
Taiwan's exports in January 2022 to our major trading partners (China, ASEAN, US, Japan, and EU) grew across the board. The increase in exports to US was the highest, at 34.2%, followed by exports to EU, ASEAN, Japan and China, by 23.7%, 22.7%, 14.6% and 5.1%, respectively.
In terms of imports, in January 2022, Taiwan's imports from our major trading partners (China, ASEAN, US, Japan, and EU) showed the highest growth from EU, at 30.3%, followed by 17.2 % from US, 17.1% from China, 16.0% from ASEAN, and 2.7% from Japan.
Of the top 10 exports in January 2022, the export value of electrical machinery equipment and parts (HS85) was the highest at US$19.89 billion, followed by mechanical appliances and parts (HS84) at US$5.23 billion. In terms of the rate of change, mineral products (HS27) showed the strongest growth with an annual increase of 134.5%, followed by iron and steel (HS72) with an annual growth of 52.5%. As supported by the continued rise in international oil and raw material prices, coupled with strong demand in terminal markets, driving the export performance such as energy and base metals continued to rise.
Of the top 10 imports in January 2022, the import value of electrical machinery equipment and parts (HS85) was the highest at US$11.34 billion, followed by mineral products (HS27) at US$5.59 billion. In terms of the rate of change, mineral products (HS27) increased with the highest growth rate by 102.8%, followed by iron and steel (HS72), which increased by 65.9%. Because of the high prices level in international raw material markets and some companies increased their replenishment before Lunar New Year, the increase in imports has been boosted.