Will Turkey quake exert impact on VFY export of China?

The influence of Turkey's earthquake is still ongoing, and many products in the textile industry are also affected. According to customs data, China exported 69.7kt of VSF to Turkey in 2022, accounting for 22% of the total export volume, which is the most important product among cellulose fibers. The trade volume of rayon single yarn is about 2kt, just taking up about 1.5% without high correlation. The direct export of VFY in 2022 exceeds 100kt, of which Turkey's trade volume is about 11.5kt, accounting for about 11%, ranking the third place and is one of the main consumer markets.

Judging from the customs data in the past five years, except for the special situation in the year of the COVID-19 outbreak, there has been increasing demand for China's VFY from Turkey, but the growth seems to slow down after the export volume exceeds 10kt. At the same time, the proportion of Turkey declines when the export to India and Pakistan has grown notably.

Since Turkish textile industry is mainly concentrated in Istanbul and other regions, which are far away from the epicenter, the market feedback has been stable so far, but we will continue to pay attention to the influence.