This year, Verona Fair was crowded as expected. Due to pandemic, we could not attend the fairs for 2 years so everyone missed the fairs, to discuss business face to face.
Many company’s representatives from all over the world were in the fair visiting booths to see new materials and discuss new prices, all increased due to high energy costs in the world.
Prices increased in Turkey too because
- Energy costs increased drastically more than many other countries
- Even the foreign exchange rates change/increase every day, Turkish Lira is over valued
- Other costs for imported materials for production like epoxy prices, machinery spare parts increased
- Labor wages increased
Factories are not able to calculate their production, packaging and transportation costs to be able to give a stable price. The cost inflation in Turkey affected export companies a lot.
Downtrend In China’s Purchases
I noticed that many customers preferred to buy white marbles from Greece as they decreased their prices to be able to increase their sales. it is said that China decreased its blocks purchases around %50 which is a huge amount for both Greece and Turkey. However the cost inflation in Turkey do not allow Turkish factories to decrease their already very low prices, in contrary, we have to increase. But Greece has the margin to decrease their prices. So now our prices for white marbles are very similar, nearly the same, this is the reason that some of our clients visited Greece before Verona Fair instead of Turkey as they usually do.
Moreover, downtrend is expected in freight rates so some companies are waiting for the updated rates to place their new orders.
Stagnation In The Markets
Even Verona Fair brought some movements, some activity, markets are dull not only in Turkey but in all over the world. Turkey is affected more as price increases added to its infrastructural problems, such as quality problems, after sales services etc.…
On the other hand, Saudi Arabia restarted working with Turkey. This is good news for Turkish marble exporters as Saudi Arabia is buying all qualities with big volumes. However, some traders buying huge quantities from Turkey for Saudi Arabia started to check other countries too due to high prices in Turkey. In my opinion, some Turkish producers increased their prices more than cost increases. These high prices pushed traders to search other sources for their clients, alternative markets or materials to promote as final clients are not accepting these new prices. This is a big danger for Turkish marble exporters, factories as after losing customers is not easy to gain back.
Visitors In Verona Fair
Regarding Verona Fair, this year, the fair hosted wide range of countries such as Canada, USA, Australia, UK, Indonesia, Singapore, Argentina, Brazil, Portugal, South Korea, China, Morocco, few from Arabic countries. Few people from Middle Eastern countries compared to previous years, probably because of visa problems as it takes more time than ever to get the visa and heard many visas rejection.
To find a wide spectrum of clients together is a good chance for promoting different types of materials with different qualities. I believe it is a good opportunity for the producers wishing to sell all its production.
For the traders / consultants like me, it was good to see again my clients and to be able to add 2-3 new clients to my portfolio.
Beautiful Country, Welcoming Hospitality and Good Food
Finally, I would like to thank ITALY, VERONAFIERE for the hospitality and for good food, I missed so much to meet with my friends and to visit Verona and Venice, it is a beautiful country with good people.