Considering the limited importance of the traffic in Middle South Turkey and the distribution of industries

Since 2008, there have been two earthquakes above magnitude 7 in China, among which the Wenchuan earthquake was the most severe. According to China's experience, disaster relief work still needs to last for a long time, and post-disaster reconstruction may take several years. However, the industry may be expected to partially recover within a quarter.

Considering the limited importance of the traffic in Middle South Turkey and the distribution of industries, we believe that the impact of the earthquake on the textile industry is relatively limited for the time being, based on static analysis.

At the same time, considering the current low operating rate of the global textile industry, even if some processing capacity is damaged, it is easier to find other regions or countries as substitutes.

Whether it will deal a blow to the current fragile global confidence is uncertain. At the same time, we should pay attention to another possibility, that is, the short-term transfer of quarterly orders undertaken by the earthquake area will bring about a concentrated release of demand and cause an imbalance between supply and demand.