Cotton, textile imports surge in January

Taipei, Feb. 18, 2003 (CENS)--Cotton imports to Taiwan grew twofold in value in January from the same period of last year, while textile imports rose by 48.4% in the same comparison period, according to the Directorate General of Customs under the Ministry of Finance.

An industry analyst attributed the import surge to extra procurement by domestic textile producers in expectations of war between the U.S. and Iraq, and the continued rise of commodity prices worldwide.

Due to the shortfall of upstream chemical fibers, the prices of some chemical fiber products, including ethylene glycol and purified terephthalic, have been rising since the beginning of this year. The prices of downstream polyester filament yarns and polyester textured yarns have also been skyrocketing.

Taiwan exported US$797 million worth of textiles in January, down 3.8% from US$828 million posted in the same month of last year. Exports of yarns and fabrics fell 4.1% to US$555 million and exports of garments dropped 5.9% to US$104 million.

The export drop was accompanied by an increase in imports of textile products to Taiwan in January. The textile import bill for that month soared 48.4% year-on-year to US$187 million. Imports of cotton reached US$23.5 million in January, up 220% from US$7.4 million posted in the same month of last year.

Taiwan exported US$12.14 billion worth of textile products last year, down 4%, while imports rose 5% to 2.47 billion, from the previous year. The US$9.67 billion trade surplus for the period was the lowest since 1993.

An industry analyst expressed concern that the shrinking trade surplus might reflect the weakening competitive edge of Taiwan's textile industry compared to rivals in developing countries, such as mainland China.

Lower unit prices have also taken a toll on the domestic industry. Some domestic producers of garments have been complaining that the average price of their products has been falling for a long period of time and that further declines can be expected this year.

Taiwan exports of fabrics and garments declined by 6% and 13% in value, respectively, last year from 2001, while the fall was only 4% and 8% by volume, respectively.