Market evolution: Metallised textile yarn (CN 5605) — 2015–2025

Introduction

This report analyses the evolution of the European Union's trade in metallised textile yarn (Combined Nomenclature code 5605) over the period from 2015 to 2025. The product, which combines textile fibres with metal for applications ranging from technical textiles to fashion, occupies a specific niche in the EU's external trade. Over the decade, the EU's trade balance has improved significantly, driven by a combination of declining import values and stable export volumes, albeit with notable shifts in partner countries and an increasing concentration in key trading relationships. The following sections detail the main dynamics observed in the overall trade flow, the evolving partner landscape, and changes in the market structure.

1. A Structural Improvement in the Trade Balance Amidst Volume Stability

The EU's trade in metallised yarn witnessed a clear improvement in its net position between 2015 and 2025, primarily because import values contracted more sharply than export values, even as physical trade volumes remained relatively stable.

1.1 The Import Side: Falling Values and Rising Prices

EU imports of metallised yarn fell in value by 12.8% between 2015 and 2025, from €20.9 million to €18.3 million. This occurred despite a more modest decline in imported quantity of 3.0%, indicating that the average price of imports decreased by 10.2% over the period. This suggests a shift in the composition of imports or negotiations of lower unit prices. The period saw significant annual fluctuations, with import value peaking at €27.3 million in 2019 before falling to its 2025 level.

1.2 The Export Side: Value Growth Driven by Price Increases

In contrast, the value of EU exports grew by 12.8% over the same period, reaching €14.3 million in 2025. However, this growth was entirely price-driven, as the exported quantity actually fell by 5.2%. The average export price surged by 18.9%, from €44,010 per tonne in 2015 to €52,345 per tonne in 2025, its highest point in the series. This indicates EU exporters were able to command higher prices for their products.

1.3 Convergence of the Trade Deficit

The combined effect of these trends was a dramatic reduction in the EU's trade deficit. The deficit shrank from €8.2 million in 2015 to €3.9 million in 2025, an improvement of over 52%. The deficit was smallest in 2019 at €2.2 million, before widening again and then narrowing. This improving balance highlights a structural shift towards greater competitiveness or changing demand patterns for this specialty yarn.

2. A Reconfiguration of the EU's Key Trading Partners

The period 2015-2025 saw a notable reconfiguration in the countries with which the EU trades metallised yarn, marked by the rise of Türkiye as the primary import source and the declining role of traditional partners like China and Japan on the import side.

2.1 The Ascent of Türkiye as the EU's Top Import Supplier

The most striking change was the rise of Türkiye. In 2015, it was the third-largest import source; by 2025, it had become the dominant supplier, with its import value nearly doubling to €6.4 million and capturing a 34.8% share of EU imports. This significant growth, amidst falling overall import values, points to a strong competitive positioning of Turkish suppliers in this market segment.

2.2 Diminishing Import Shares for Traditional Suppliers

Conversely, several traditional suppliers saw their share of the EU market erode. Imports from China fell by 29.7%, from Japan by 30.2%, and from the United States by a sharp 70.9%. The United Kingdom, while remaining a significant partner, saw its exports to the EU fall by 52.1% in value, a decline likely influenced by the new post-Brexit trade relationship.

2.3 More Concentrated and Stable Export Destinations

The EU's export profile also shifted, becoming more concentrated. The United Kingdom and the United States remained the top two export markets, but their import values from the EU fell by 27.9% and 58.7% respectively. Exports to Russia, while volatile, remained relatively stable. A notable exception was Norway, where EU exports saw remarkable growth (+225.4%), though from a small base. The concentration of partners increased, as reflected in the rising Herfindahl-Hirschman Index (HHI) for both imports and exports.

3. Increasing Market Concentration and Domestic Specialisation

Underlying the trade shifts was a consolidation within the market structure, characterized by greater trade concentration and a clear specialisation pattern among EU member states in production and export.

3.1 Rising Concentration in Trade Flows

Market concentration, as measured by the Herfindahl-Hirschman Index, increased for both imports and exports. The import concentration index (by value) rose by 15.1% to 2,263, indicating that imports became more reliant on a smaller number of dominant suppliers like Türkiye. Export concentration increased more sharply, by 51.9%, suggesting EU exports became more focused on fewer, key destination markets.

3.2 Domestic Production and Specialisation Within the EU

EU domestic production data shows significant variability, with value growing by 86.1% over the period, though from a variable base. More importantly, a clear specialisation pattern emerges among EU member states. In 2025, Lithuania, France, and Belgium showed the highest Revealed Symmetric Comparative Advantage (RSCA) scores, meaning they were highly specialised in exporting this product relative to their overall export basket. Germany was the largest single exporter by value (€6.7 million), but its specialisation index was lower, indicating a more diversified export portfolio.

3.3 Vulnerability and Strategic Reliance

The EU's net import reliance metric, which captures the degree to which the EU depends on external suppliers, swung from a slight negative (indicating a net exporter position in value terms) in 2015 to a positive 18.5% in 2025. This indicates a return to a net importer status in the final year, albeit much reduced from its peak of 36.6% in 2018. The decline in export propensity (share of production exported) from 116% in 2015 to 48% in 2025 suggests a greater portion of domestic production is now serving the internal EU market, potentially reducing vulnerability to external demand shocks.

Conclusion

Over the 2015–2025 period, the EU's market for metallised textile yarn (CN 5605) underwent a consolidation and strategic reorientation. The most salient trend was the significant improvement in the trade deficit, driven by falling import values and rising export prices. This masks a profound reconfiguration of trade partners, with Türkiye solidifying its position as the EU's primary supplier at the expense of established Asian and North American exporters. Internally, the market became more concentrated, with a few specialised member states like France and Belgium driving export growth, while Germany emerged as the largest exporter by volume. Although the EU returned to a net importer position in value terms by 2025, the reduction in export propensity suggests a potential strategic shift towards catering more for intra-EU demand, which may buffer the bloc against external volatility. The key risk remains the increased concentration in suppliers, particularly reliance on Türkiye for over a third of imports.