The Turkish cement industry continued to grow in the arduous year of 2020 and performed above expectations. TÜRKÇİMENTO shared up-to-date data for 2020. Accordingly, it was stated that the sector performed above expectations in production, sales and exports.
TÜRKÇİMENTO announced the export figures of the sector for 2020, the estimated figures of non-member companies and the total production and sales figures of its members. According to the figures announced, despite the pandemic that showed its negative effects at the beginning of the year, a successful performance was achieved in 2020 figures with the effect of the return to normal life and the recovery in the construction sector.
The cement industry started 2020 with hope after 2019, when it contracted by approximately 29%. However, after the pandemic, many compelling factors were encountered such as sales cancellations and loss of income, increases in exchange rates, cement prices that increased below inflation and energy costs.
While the sales increased again with the return to normal life and the recovery in the construction sector since June, the figures for 2020 were realized as follows with the revival that continued to show its effects until the end of the year:
– While the cement production in 2020 reached 76.5 million tons with an increase of approximately 27% compared to 2019, there was an increase of 23% in domestic sales and 37% in cement exports compared to the previous year. With this increase, domestic sales became 59.2 million tons and exports were 31.4 million tons.
– Approximately 22% of the cement produced in 2020 was exported.
– According to TUIK data, clinker exports increased by 24% to 14.4 million tons in 2020, and cement exports increased by 50% to 17 million tons. Total export value increased by 27% to reach 1 billion 116 million dollars..
– According to TUIK data, Ukraine was the country with the highest increase in exports (cement + clinker) in 2020 followed by Haiti and Antalya Free Zone.
– According to TUIK data, the export price (cement) of about $ 70 / ton in mid-2011 has decreased in recent years and the decline that started in late 2015 hit rock bottom with $ 43.7 / ton in February 2017. Prices recovered somewhat in the following months, reaching $ 50.2 / ton at the end of 2017 and $ 52.7 / ton in 2018. Average prices, which started 2019 with a decrease again, rose slightly in November, but dropped to $ 43.2 / ton in December. Average prices started the year 2020 with historical decline and hit rock bottom at $ 40.9 / ton. Prices rose slightly in February, then declined. It reached the level of $ 42.4 / ton in December.
In the light of these data, Syria became the world’s second largest cement exporter in 2020. The most important markets in exports, which is made to more than 100 countries, became the USA, Israel, Ghana and Ivory Coast.
Housing sales increased by 11.2% in 2020 compared to the previous year and rose to 1 million 499 thousand 316.
Gross Domestic Product (GDP) increased by 1.8% in 2020. GDP at current prices increased by 16.8% in 2020 compared to the previous year and reached 5 trillion 47 billion 909 million TL.
According to the statement made by TÜRKÇİMENTO about the sector: “2020 was a year in which the industry broke a record in exports. The contraction in the domestic market forced the sector to be aggressive in exports. However, the Turkish cement sector started 2021 with a decrease in exports. It is thought that the revival of the domestic market is effective in this decrease.”
The economic evaluation is as follows: “In the first estimates made for 2021, it is predicted that a growth rate of 5% in line with the economic growth target of the country and the total export will be between 28-30 million tons. It is hoped that the pandemic effect will decrease with vaccination and the economy will return to normal. In order to reach the growth figures, economic decisions covering sub-sectors such as cement are important.”