Turkish Earthquake Wreak Havoc on Domestic Polyester Staple Fibre Industry
- 08-Feb-2023 3:46 PM
- Journalist: Timothy Greene
Turkey: It has been reported that the Polyester Staple Fibre (PSF) sector has been impacted as a result of production facilities being shut down after a big earthquake struck close to the Syrian border in southern Turkey on 6th February. Turkey is one of the major hubs for the production, consumption, and trade of textiles in European market including PSF. Participants in the market are also worried about the state of the nearby Polyester manufacturers following the earthquake in Turkey.
Turkey's textile industry generates one-tenth of its GDP, and it contributes 20% of total employment and 40% of the country's total industrial output, thus its importance is evident. Turkey is the second-largest source of textile and apparel imports from Europe and a major producer and exporter in the region. According to the ChemAnalyst database, PSF prices rose in January before mostly stabilizing around USD 1815/MT on a CFR Haydarpasa basis, which is now anticipated to change its trajectory in coming days.
Market sources claim that over 7% of Turkey's textile companies and employment are located in Gaziantep, which is the city closest to the epicenter of Karamanmara. Thus, the earthquake will affect the Turkish textile industry, particularly nearby PSF enterprise's transportation, and production.
Therefore, the unfortunate circumstances happening in the region may alter the pricing trend for the Turkish PSF market. However, Turkey's primary source of PSF imports is China. Following the Spring Festival holiday, China's export container marine market has performed poorly, the recovery of transport demand has also slowed down, and the freight rates of most ocean routes have decreased due to a disappointing supply and demand balance.
However, the ChemAnalyst forecast suggests “An increment in PSF price in the Turkish market due to the delay in transportation. The impact of the earthquake is likely to have some impact on Turkey's domestic textile industry as production might get interrupted.”