Turkish Cotton Yarn Consumption Declined over the Past Two Year Period
According to the report “Turkey: Cotton Yarn – Market Report. Analysis And Forecast To 2025”, recently published by Index Box, the Turkish cotton yarn market stood at 1,151 thousand tonnes in 2016. There was a noticeable drop in the level of consumption over the 2008-2009 period; this was then followed by recovery over the next five years, until it dropped again in 2015-2016. In value terms, the market stood at 3,374 million USD.
Projections Indicate that Turkish Cotton Yarn Consumption Is Set to Reach 1,341 Thousand Tonnes
The key driver of cotton yarn market growth in Turkey is a stable demand from the textile industry. However, only a very modest rate of growth of cotton yarn consumption is expected, following a slow expansion of the key export markets for textile and garment, and competition from synthetic materials.
As projected, cotton yarn consumption is set to increase in the medium term with an anticipated CAGR of +1.7% for the period from 2016 to 2025, which is projected to lead the market volume to 1,341 thousand tonnes by the end of 2025.
After Regaining Pre-crisis Figures, Cotton Yarn Production Declined over the Past Two Years
Turkey is one of the key producers of cotton yarn in the world. Approx. 85% of domestic consumption is met through domestic output. The production of cotton yarn in Turkey dropped to 1,127 thousand tonnes in 2016, which was 5% less than the year before. After the period of decline seen from 2008-2009, the production volume demonstrated a positive dynamic, however it dropped again from 2015-2016. In value terms, it stood at 3,312 million USD, or 2% more than previous year.
EU Countries Constituted the Main Destinations for Cotton Yarn Exports
Turkey exported 154 thousand tonnes of cotton yarn in 2016; this figure fell over the last year, after a significant growth by 18% in 2015. In value terms, exports remained relatively stable over the last four years, after contracting 7% in 2011. In 2016, export value stood at 446 million USD.
In 2016, the main destinations for Turkish cotton yarn exports were Italy (20%), Portugal (15%), Germany (7%), Poland (6%) and Spain (5%). The share exported to Spain (+2 percentage points) and Portugal (+4 percentage points) increased, while the share sent to Poland (-2 percentage points) illustrated a negative dynamic. The shares of the other countries remained relatively stable throughout the analyzed period.
Turkmenistan appeared as a key supplier of cotton yarn The volume of Turkish cotton yarn imports totalled 178 thousand tonnes in 2016, expanding by 25% over the last year. In value terms, imports increased by 20% to 509 million USD. In physical and value terms, wild fluctuations were noted from 2007 to 2016.Turkmenistan (39%, based on tonnes), followed by Viet Nam lagging somewhat behind (15%), Uzbekistan (13%), India (9%) and Pakistan (8%) were the main suppliers of cotton yarn to Turkey, with a combined share of 84% of total imports in 2016. Turkmenistan and Viet Nam significantly strengthened their position in Turkish imports by +28 percentage points and +15 percentage points, respectively, from 2007 to 2016.