We hit bottom in China

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The storm rages on in the crucial market for the Turkish natural stone industry. No good news from the vast market, in which we had suffered a recession of 18.1% in 2018.

Let’s cut a long story short. The Turkish marble industry is in low spirits. Some are worried about the decreasing income, and some keep their guard up, considering the worst thing that could happen. We know why. Let’s leave aside the domestic competition, never-ending bureaucracy, high quarry/production expenses, and laws. The main problem is the drop in export. The unpredictable recession that started in April 2018 and couldn’t be stopped for 1.5 years. Also, the course of events in the Chinese market.

40.5% of the total income

We don’t need to talk a lot to make you realize how important China is for the Turkish sector. The figures tell it all. The Turkish natural stone industry, which generated an income of $1.908.306.000 in 2018, earned $773,837,000 of this amount from China, which means that 40.5% of the industry’s income comes from China. The year 2018 had been concluded with a decrease of 18.1%, and the eyes had turned to the year 2019.

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The lowest amount of the last seven years

According to the figures, neither 2019 will be a solution for the decrease in China. The statistics regarding the January-August 2019 period indicate a decrease of 13% compared to the same period of the previous year. Turkey earned a total of $454,737,000 in exchange for its natural stone export to China. When we compare this amount to the last year, the severity of the situation is revealed to us. Because this is the lowest amount
of the last seven years. It is likely that the amount will be approximately $700 million by the end of the year.

The embassador had indicated the year 2020

What exactly is the problem? Everybody knows that China has been increasing its block import for two years and its stocks are already full. Let’s highlight two factors in the Chinese market. The first one is that the Chinese government imposes some restrictions on loans for the construction sector. The second one is the high amount of “amateur players” in the Chinese natural stone industry and the country’s domestic problems. We’d also like to remind you of the interview we had made with Abdülkadir Emin Önen, the Turkish ambassador of China, at the Xiamen Fair. Önen had said, “The Chinese government made some decisions about the construction and finance sectors in 2018. I believe that also 2019 will be a tough year. However, we can expect the situation to recover from 2020. What should we say? Our final hope. 2020!