Supply chain questions for Nipro, J&J as COVID-19 export restrictions widen — Panjiva
MENU

Panjiva_research_logo

Supply chain questions for Nipro, J&J as COVID-19 export restrictions widen

Coronavirus 256 Health Care 194 Mexico 656 Turkey 48 U.S. 4229

The government of Turkey has joined others in restricting exports of medical supplies, Bloomberg reports, including masks and surgical gowns. That follows a similar move in India which has focused on pharmaceuticals and their precursors, as outlined in Panjiva research of Mar. 4, in response to the COVID-19 coronavirus outbreak.

Panjiva data shows Turkish exports were worth $275 million in the 12 months to Nov. 30 including bandages, surgical gowns and gloves, suture kits etc. That followed a growth in exports of 4.0% year over year, led by an expansion of exports to Europe of 8.3% to represent 35.5% of the total. Shipments to China climbed 11.0% higher while those to the U.S. went through a surge of 20.2%. That growth may be a driver for the government’s restrictions.

TURKISH MEDICAL EXPORT GROWTH CRESTED AFTER A TWO YEAR SURGE

Chart segments Turkish exports of selected medical supplies by destination on a trailing 12 months basis. Source: Panjiva

U.S. imports of the products likely covered by the ban from all origins climbed 12.6% year over year in 2019 to reach $10.9 billion. The reliance on Turkey, and impact of the ban directly, is minimal. The main supplier to the U.S. was Mexico which accounted for 27.8% of the total after a 28.7% surge in 2019. That growth slowed to 13.1% in Q4.

The second largest supplier region was the EU with 26.0% of the total while China represented 13.6% of supplies.

Major buyers of medical supplies, based on seaborne import data, from outside North America include Nipro, Mölnlycke and Johnson & Johnson. Meanwhile importers from Mexico include Becton Dickinson, Kimberly Clark and 3M.

MEXICO, CHINA MET SURGING U.S. DEMAND FOR MEDICAL SUPPLIES IN 2019

Chart segments change in U.S. imports of selected medical supplies by origin. Source: Panjiva

Copyright © 2020 Panjiva Supply Chain Intelligence, a product offering from S&P Global Market Intelligence Inc. All rights reserved.