7th Ceramics Industry Meeting was held in May online in the shade of Covid-19 pandemy. Made over the Zoom application, the meeting has become the industry meeting with the largest number of attandence to this day. Developments and expectations in the ceramics industry were discussed in the meeting.
The 7th of the ceramics industry meetings that were held periodically, was held in May over the Zoom application. Those who attended the meeting as speakers were The President of Turkish Exporters Assembly (TIM) Ismail Gulle, The President of Cement, Glass, Ceramic and Soil Products Exporters Association and Turkish Ceramics Federation (TSF) Erdem Cenesiz, Board Chairman of Dunya Newspaper Hakan Guldag, General Coordinator of Dunya Newspaper Vahap Munyar and Economy Consultant Dr. Can Fuat Gurlesel. Developments and expectations in the ceramics industry during the pandemy period were discussed in the meeting.
President of TSF Erdem Cenesiz has stated that it was the most crowded industry meeting to this day with 165 attendance and opened the meeting. President of TIM Ismail Gulle has said “We have seen crises before too but we’re facing a pandemy like this for the first time. From now on nothing will be like old times. Everything will changefrom state governing to company governing. We’re seeing that single point supply system will change. It’s important for a country to become self-sufficient.”
Topics in the meeting that was emphasized on pandemy’s effects on the ceramics industry, are as follows in summary:
Erdem Cenesiz:
We have reached the highest number in ceramic coating materials exportation in 2019. We have made an increase of 11 percent whereas in fact we have aimed 14. Despite all the negative things in 2020 January-April period there was a 9 percent growth. There was a 17 percent shrinkage in April and a 20 percent decline between 1st-11th of May. We are in a situation to be covered under force majeure.
We have started with an 11 percent of downsizing as Ceramics SanitaryWare. It decreased 37 percent in April.
There’s a 32,5 percent decrease in ceramics industry compared to last year’s May.
Buyers are caring ‘Fast Supply’. We supply to Europe and USA faster than China. We have proved our operational power as a country. We’re a safe country as a supplier. Travel restrictions, buying committees not willing to go to China but Turkey being easily accessible are our advantages. We produce very fine ceramics. We can keep on exportation by increasing prices and without competing with anyone.
Energy prices are in an unexplainable point. We use the most expensive energy. A workshop is needed to determine energy policies.
Supports must be determined according to performance criteria. There must be a more efficient support system.
Organizers’ decision is important for expos. CERSAIE is postponed. The attending conditions will be determined according to the course of the pandemy. There are no Ceramics Promotion Groups left. As Turkish Ceramics our lower budget activities are going on in ceramics sanitary ware side.
Hakan Guldag:
There was move in exportation in May but there’s a 47 percent shrinkage in ceramics. While a recovery is expected this decrease is challenging. Economy is also opening together with life but it will be hard to return back to consumption basket. There’s demand deferment in domestic market, exportation is getting more important. The profit issue is seeming like it will put us in a hard situation. Let’s hope that there will be a recovery at that side. Because it’s consuming the energy of the real sector, all the energy, all the focus is moving towards to that issue.
Can Fuat Gurlesel:
New norma will continue until a vaccine is found for coronavirus. Return back to the old normal will be likely in the mids of 2021. Interms of economical activities there’s a 4 percent downsizing is being foreseen in the world economy in 2020-21. In these condquarter of 2021 we may catch the 2019 numbers. Economical activities will hit the bottom in April, May, June 2020. World Trade Organization foresees a 10 percent downsizing in world trade in goods even in the most optimistic scenario.
As of by 20th of April construction materials are at the 4th from the bottom in the world productivity rankings.
Becasue of the closings in April there’s 80 percent shrinkage in our markets –Italy and France - in construction industry.
There’s a period of 8-10 months required for recovery after April. We can return back to the numbers of 2019 in the last quarter of 2022. This year we will be 40 percent lower than 2019.
As companies there’s a necessity tomake as par production for this period.
There’s an opportunity for all construction materials and ceramic products. There will be a strong recovery in the first quarter of 2021.
Vahap Munyar:
All sectors wants to be taken under force majeure. Government should act in a way to gather common sense. It should be more effective and quick to support sectors.
There’s a debt of 172 billion dollars to be turned over in a year and this power has decreased under 80 percent. There’s a need for outsourcing. We should take it but how? The risk unit in Turkey is even more than Africa which is worse than us. The reason is trust depression. Banking activities against Turkey must be punished of course but without firing up to the world. Risk unit is not because of economy it’s because of trust depression.
