Taiwanese dollar appreciation pressures local screw industry
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Update time : 2025-05-28 16:18:48
The New Taiwan Dollar (NTD) resumed its upward momentum last week, closing at NT$30.023 against the US dollar on May 23, marking a new high in over two years. This sharp appreciation created significant challenges for Taiwan’s screw manufacturers. Industry insiders reported that the strong NTD not only weakens export order competitiveness but also severely erodes profitability, posing a greater impact than tariffs.
Over the past 2-3 years, Taiwan’s screw industry faced competition from China and Southeast Asia. Despite this, last year’s export volume remained stable. Moreover, in the first four months of 2025, exports reached about 422,000 tons, representing a 1.27% increase year on year.
Manufacturers emphasized that while Trump imposed tariffs on all countries, higher tariffs on Chinese products gave Taiwan a relative advantage. However, the Chinese Yuan appreciated only slightly during this NTD surge. With a 2.5-month cycle from order to shipment, the performance in the second quarter may hold, but the third quarter could prove to be the most difficult. Manufacturers are urged to highlight quality and stability to counter the impact.
