Current Outlook in the World Textile Markets
World industrial product exports decreased by 27 percent in the second quarter of 2020. This contraction was 23 percent more than the 2008 global crisis.
The New Normal Will Be Long-Term, The Solution Is In Vaccination
World Health Organization anticipates that the new normal period will continue in the second half of 2021, with the possibility of a decrease in daily cases and vaccination in the second half of 2020, as the new normal and permanent solution.
According to data from sectoral exports that belong to Turkey Exporters Assembly (TIM), total exports of Turkey, in the first five months of 2020, decreased by 19.7 percent compared to 2019 and reached an amount of 61.6 billion dollars between January and May of 2020. There was a decline of 26.7 percent in the exports of textiles and 16.6 percent in the exports of machinery. In the first five months of 2020, 6.2 billion US dollars worth of machinery was exported.
According to the latest survey conducted by ITMF (International Textile Manufacturers Federation) with the participation of 600 companies from different parts of the world, textile orders have decreased by an average of 42 percent worldwide. Orders decreased in countries affected by the Covid-19 pandemic, by region.
When the export and import data of textile machinery in the first five months of last year is compared, it is observed that the Turkish textile machinery exports decreased by 20.6 percent, while imports increased by 33.8 percent.
New Textile Machinery Shipments Decreased Worldwide in 2019
There has been a worldwide contraction in textile machinery in 2019, although not significant. After this contraction, however, the textile machinery sector continued to experience export losses in the world and in our country with the effect of Covid-19 as of March.
The main exporters of textile machinery excluding China experienced export losses in 2019. In the same period, Turkish textile machinery exports amounted to 800 million US Dollars, achieving an 8 percent increase in exports compared to 2018.
Turkey’s share in the global total textile machinery exports is 2.6 percent.
Italy, Germany and the Swiss textile machinery lost power in 2019 in Turkey, China, and India markets. The increase of the Chinese Textile Machinery was remarkable in Turkey and India markets. It was observed that especially China and Swiss textile machinery manufacturers increased textile machinery exports to Africa (41 percent) and South America (27 percent).
Turkish Textile Machinery Export and Import Status in January-June 2020
This year, Turkish textile machinery exports decreased in April and May, while there was an increase of 18 percent in June compared to the previous year.
Comparing the first six months of 2020 with the first six months of the last year, sector exports decreased by 15.7 percent in the period of January – June 2020 compared to the period of January – June 2019. While exports worth 318.5 million US Dollars were carried out in the first half of last year, exports worth 268.5 million US Dollars were made in the first half of this year. In the same period, sector imports rose by 33.4 percent from 458 million US Dollars to 611 million US Dollars.
Considering the sector imports from January to June 2020, it is observed that;
- Germany; in spinning machines,
- Belgium and Italy; in weaving machines,
- Italy, Japan, and Germany; in knitting machines,
- Germany and China; in textile machinery spare parts,
- China; in all subgroups of finishing and cutting machines,
- China; in ready-made garment (sewing) machinery,
- Portugal; in printing machines,
- Germany; in textile chemicals is seen to be in the foreground.
In the same period, no differentiation was observed in export markets. Turkey continued to protect its export market in similar target countries such as Bangladesh, Iran, Egypt, Pakistan, and Uzbekistan.
Although the troublesome pandemic period, the textile investments in Turkey were seen to continue, to some extent. As observed in investment incentive documents, domestic textile machinery was also utilized in addition to using imported machines for new investments in Bursa, Denizli, and Maraş regions. In the upcoming period, the effects of additional taxes on imports of sector products and trends in domestic machinery preferences are also followed.
Source: TEMSAD (Textile Machinery and Accessories Industry Association)
Haber: Kübra Karaca / Tekstil Teknoloji Magazine
