Fuels, flood aftermath blamed for record trade in March

The Commerce Ministry reported yesterday that exports last month remained battered by the impacts from last year’s floods. Despite growth in February, export value declined in March by 6.54 per cent year on year to $19.8 billion, the deepest contraction in four months. Imports grew greatly, by 25.62 per cent to $24.45 billion.
“Although Thailand recorded a high trade deficit last month, the ministry has confidence that the country will lock into a trade surplus by the end of the year, because exports will return to strong growth in the second quarter,” said Deputy Commerce Minister Poom Sarapol.
He is optimistic that export growth will resume after industries gradually resume normal operations in the current quarter. He also said Thailand would achieve a 15-per-cent export growth rate this year, against a slight contraction in the first quarter.
Shipments in the first quarter dropped by 3.92 per cent year on year to $54.64 billion. However, imports grew by 10.45 per cent to $59.82 billion, resulting in a trade deficit of $5.18 billion.
In March, import of raw materials and semi-raw materials soared by 17.6 per cent, while that of capital goods rose 17.8 per cent, mainly for machines and parts and electronic goods.
Fuel import volume rose by 53.83 per cent year on year to 33.88 million barrels (averaging 1.09 million barrel a day), while import value surged 75.65 per cent to $4.26 billion. Fuel import volume in February was at 23.41 million barrels, while in January it was at 16.44 million barrels.
Gold import also increased significantly last month due to the declining gold price in the world market. Import volume jumped by 418 per cent from February’s 7.9 tonnes to 40.99 tonnes in March. Gold import value also up by 405.3 percent month on month to $2.19 billion.
Poom said gold imports peaked last month because gold traders wanted to build stocks while the price was down. The average global gold price dropped from $1,741 per ounce in February to $1,679 last month.
Shipments of agricultural goods dropped in March by 21.3 per cent, and industrial goods by 7.4 per cent. Significant declines included rice by 53.4 per cent, rubber by 34 per cent and tapioca products by 37.3 per cent.
Most exports of industrial goods dropped, including electronics by 26.9 per cent, electrical appliances by 7.4 per cent, garments by 16.6 per cent, jewellery by 53 per cent, printing by 69 per cent, and furniture by 5.1 per cent.
However, exports of some industries have recovered to growth, including automobiles and parts by 6.7 per cent, rubber products by 8.8 per cent, pet food by 21.5 per cent, and cosmetics by 1.4 per cent.
Exports to some markets also dropped last month, mainly those to the European Union by 15.3 per cent, Hong Kong by 38.9 per cent, and Australia by 15.4 per cent.