Cement Industry Employers’ Association (ÇEİS), one of the umbrella organizations of the Turkish Cement Sector, made evaluations about the cement pricing policies that have recently been discussed by the public.
Underlining that they are proud of the added value and contribution they provide to Turkey, ÇEİS Chairman of the Board of Directors Suat Çalbıyık said: “We did not hesitate to take responsibility in order to maintain the stable momentum our industry has achieved in the domestic market and to crown our success by continuing the critical role we have assumed in foreign markets. Although it has contracted in a row in 2018-2019, Turkish Cement Industry is an industry that has not refrained from making sacrifices for Turkey.”
“We are proud to serve Turkey under all circumstances for nearly a century”
Underlining that the Turkish Cement Industry is an important player in the global market and that this success must be sustained exponentially, Çalbıyık said: “The Cement Industry has been proud to serve its country for nearly a century since the first years of the Republic. Today, we are the first in Europe and the sixth in the world in production. We are again in the first place in Europe and second in the world in exports. We know that success is not easily achieved, we do not hesitate to make sacrifices as an industry to make these successes sustainable. Our industry, which contracted in 2018-2019, started 2020 with hope. “It was shaken for the second time due to the 19 epidemic. Still, we did not interrupt production and contributed to the continuity of the construction industry as usual.”
“Even though we were exposed to a serious cost increase, we did not give up on creating added value for our country”
Emphasizing that they have carried out works that will create added value for Turkey even during periods of great price suppression due to high cost increases, Çalbıyık continued his words as follows: “55-65% of the cost components of the cement industry consist of fuel and electricity costs. Our sector’s dependence on imports in fuel supply is quite high. .The cement sector meets 94% of its primary fuel need in terms of calories and 92% in terms of quantity from petroleum coke and imported coal. 92% of fossil fuels used extensively in production are imported. As of 2017-2021 March, petroleum coke prices increased by 200%, electricity unit prices increased by 106% and imported coal prices increased by 67.5 percent. Besides fuel and electricity costs, labor costs per facility increased by 31.2% on average from 2017 to the end of 2020. Despite this, when we look at the world in general, it is clearly seen that we are selling the lowest priced cement.”
The ratio of cement in the housing construction cost is at most 3.2%
Stating that when the housing price index of the Turkish Central Bank covering the years 2017-2021 is analyzed, it is possible to reach the data that housing prices increased by more than 70%, Çalbıyık concluded his statement as follows: “As seen in the report ‘The Effect of Cement and Ready-Mixed Concrete Price Increases on Building Costs’, which was commissioned by METU in February 2019 by TÇMB, formerly known as TürkÇimento, the share of cement in the overall cost of a first class building is between 2.7% and 3%. In summary, even if there is an increase in cement prices, it is clear that the material that will affect the construction sector prices is not cement. Where we need to talk about the achievements and breakthroughs of our sector, the public’s agenda should not be occupied with claims that do not reflect the truth.”
“It is an inevitable fact that our industry, which meets the needs of the domestic market by producing with its factories in 7 regions of Turkey, stretching from Edirne to Kars, and proud of its success in exports, does not directly reflect the cost increases experienced in its prices (although it does not hesitate to take responsibility for the country’s economy) and is negatively affected by this situation.”
