28 July 2015
JEDDAH: The Kingdom's external trade saw a moderation in nonoil export activity in May, recording the second largest slump since February, slowing by 16.7 percent Y/Y. Total nonoil exports were valued at SR15.2 billion affected by sharp declines in the largest export categories, plastics, chemical products, and base metals.
On the import side, headline import figures also declined in value, albeit to a lesser extent, at SR51.7 billion, according to a report by the National Commercial Bank (NCB).
On an annual basis, the report said imports slipped 5.1 percent on the back of large declines in imports of base metals and chemical products. Tonnage-wise, nonoil exports recorded 4.1 million tons; around 5.7 percent less compared to the same period last year.
Additionally, the weight of imports dwindled more drastically at 5.8 million tons, registering a 10.7 percent annualized downturn. The change in net exports show that the balance of trade gap had widened in May by around 0.8 percent compared to last year.
Another plunge in global oil prices, in addition to a slowdown in China, affected the returns on exports of plastics, chemical products, and base metals. In value terms, plastics make up around 31.4 percent of May's total nonoil export revenue at SR4.8 billion, falling by 18.4 percent compared to May 2014.
Chemical products, which also represent a hefty 30.9 percent of nonoil exports at SR4.7 billion, slid by 15.1 percent Y/Y. Exports of base metals recorded SR980 million, falling by 17.2 percent from last year.
The largest trade partners, China at 12.6 percent and the UAE at 12.5 percent, account for over a quarter of the Kingdom's demand for nonoil exports.
Both countries imported less in value terms during May compared to the same period in 2014,recording roughly SR1.9 billion each.
The NCB report said exports to China and the UAE thus declined by an annualized 9.3 percent and 18.1 percent, respectively. Concerning imports, despite the 5.1 percent upturn in machin- ery and electrical equipment valued at SR14.5 billion, and the 8.7 percent surge in transport equipment at SR8.5 billion, the sharp declines in multiple smaller categories shrunk the Kingdom's import bill by 5.1 percent.
Imports of base metals tumbled by 25.9 percent at SR5.5 billion, and imports of chemical products dwindled by 14.8 percent at SR4.1 billion. The import bill from China, which accounts for around 14 percent of total imports to the Kingdom remained almost unchanged from last year at SR7.2 billion. US imports up-ticked by 4.2 percent to SR7 billion, whereas imports from Germany plummeted by 14.3 percent to SR3.4 billion.
Settled letters of credit (LCs) totaled SR19.8 billion in May, registering a moderate annualized growth of 2.2 percent. Despite falling LCs for motor vehicles and machinery/electrical equipment by 6.9 percent and 8.4 percent to SR3.6 billion and SR1.7 billion, respectively, LCs of food grains rec- orded a staggering 29.6 percent upturn. Food grains LCs recorded a SR1.1 billion, providing support for bottom line annual growth rate. This is likely due to restocking in preparation for the month of Ramadan, as demand for food stuff usually surges, the NCB report said.
JEDDAH: The Kingdom's external trade saw a moderation in nonoil export activity in May, recording the second largest slump since February, slowing by 16.7 percent Y/Y. Total nonoil exports were valued at SR15.2 billion affected by sharp declines in the largest export categories, plastics, chemical products, and base metals.
On the import side, headline import figures also declined in value, albeit to a lesser extent, at SR51.7 billion, according to a report by the National Commercial Bank (NCB).
On an annual basis, the report said imports slipped 5.1 percent on the back of large declines in imports of base metals and chemical products. Tonnage-wise, nonoil exports recorded 4.1 million tons; around 5.7 percent less compared to the same period last year.
Additionally, the weight of imports dwindled more drastically at 5.8 million tons, registering a 10.7 percent annualized downturn. The change in net exports show that the balance of trade gap had widened in May by around 0.8 percent compared to last year.
Another plunge in global oil prices, in addition to a slowdown in China, affected the returns on exports of plastics, chemical products, and base metals. In value terms, plastics make up around 31.4 percent of May's total nonoil export revenue at SR4.8 billion, falling by 18.4 percent compared to May 2014.
Chemical products, which also represent a hefty 30.9 percent of nonoil exports at SR4.7 billion, slid by 15.1 percent Y/Y. Exports of base metals recorded SR980 million, falling by 17.2 percent from last year.
The largest trade partners, China at 12.6 percent and the UAE at 12.5 percent, account for over a quarter of the Kingdom's demand for nonoil exports.
Both countries imported less in value terms during May compared to the same period in 2014,recording roughly SR1.9 billion each.
The NCB report said exports to China and the UAE thus declined by an annualized 9.3 percent and 18.1 percent, respectively. Concerning imports, despite the 5.1 percent upturn in machin- ery and electrical equipment valued at SR14.5 billion, and the 8.7 percent surge in transport equipment at SR8.5 billion, the sharp declines in multiple smaller categories shrunk the Kingdom's import bill by 5.1 percent.
Imports of base metals tumbled by 25.9 percent at SR5.5 billion, and imports of chemical products dwindled by 14.8 percent at SR4.1 billion. The import bill from China, which accounts for around 14 percent of total imports to the Kingdom remained almost unchanged from last year at SR7.2 billion. US imports up-ticked by 4.2 percent to SR7 billion, whereas imports from Germany plummeted by 14.3 percent to SR3.4 billion.
Settled letters of credit (LCs) totaled SR19.8 billion in May, registering a moderate annualized growth of 2.2 percent. Despite falling LCs for motor vehicles and machinery/electrical equipment by 6.9 percent and 8.4 percent to SR3.6 billion and SR1.7 billion, respectively, LCs of food grains rec- orded a staggering 29.6 percent upturn. Food grains LCs recorded a SR1.1 billion, providing support for bottom line annual growth rate. This is likely due to restocking in preparation for the month of Ramadan, as demand for food stuff usually surges, the NCB report said.
© Arab News 2015
