Page 32 - Taiwan Machinery 2021-09 Edition

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INDUSTRY REPORT

an annual increase of 17.9%, while its first seven months’ was largely stabilized after meeting with China Steel
revenue was at NTD$3.83 billion, an annual increase of Corporation and related industry associations. Through
31.6%. Another reputable supplier, Tongtai, reported July China Steel’s attempts to prioritize supply to the domestic
revenue at NTD$980 million, a yearly increase of 67.4%, market and stabilizing markets, the local price hike situation
and revenue for the first seven months reached NTD$5.72 has largely leveled out, though the same could not be said
billion, an annual increase of 27.1%. for steel prices overseas, Wei warned.

Challenges Ahead On the other hand, the Delta-variant-fueled surge of the
latest COVID-19 outbreak has introduced new reservations
However, growth for the sector is affected by the into this year’s economic growth. Moreover, the situation
strengthening Taiwan dollar, Wei had warned. Since the abroad has furthered impacts on exports, container
beginning of 2021, the NT dollar has risen by 2.03 percent shortages, and rising shipping prices, making it harder for
against the US dollar, compared to the Chinese yuan’s 1.07 larger-sized machinery suppliers to do business.
percent increase, a 6.11 percent decline in the value of the
won, and the 5.87 percent fall in the value of the yen. Any Wei had urged government intervention to help
profits gained in this period would be severely impacted by domestic supplier representatives obtain vaccines should
exchange loss. they travel overseas for business, ensure product delivery
and maintenance.
In terms of raw material shortages, rising prices, and
longer lead times, Wei pointed out that the government’s
recent intervention into the rising steel prices situation

Credit: Taiwan Association of Machinery Industry
Graph: CENS

Taiwan Machinery 2021 September