The Turkish Construction Materials Manufacturers Association (Turkey İMSAD) released the findings of its Foreign Trade Index for October. In October, construction material exports totaled $2.49 billion. Despite the fact that exports totaled 34.3 billion dollars in value and 59.97 million tons in volume per year, the average export unit price started to decline.
Exports decreased in October following a rise in September, according to the Construction Materials Industry Foreign Trade Index compiled by Turkey İMSAD, the industry’s umbrella organization. In the preceding two months, there was a declining trend in both monthly and annual export volumes In October, it became clear how the decline in overseas markets affected exports. As a result, with 2.49 billion dollars in exports in October, the construction materials industry’s foreign trade performance was the second-lowest monthly export value of this year. In dollar terms, exports decreased 10.6% from October of the previous year.
The lowest export volume of the year was 4.18 million tons, a decline in exports of 21.9 percent from October of last year.
In comparison to the same month last year, the construction materials industry’s average annual export unit price grew by 13.5% in October. Average export prices were 0.52 dollars per kilogram in October 2021, but rose to 0.59 dollars per kilogram in October 2022. It has been observed that the average export unit price has also started to decline.
Annual exports returned from 35 billion dollars
Exports over the last year (last 12 months), which were very nearly 35 billion dollars in August, have changed course and are now on the decline. In October, construction material exports totaled 34.3 billion dollars. Exports declined in volume to 59.97 million tons annually. The average yearly export unit price is at the level of $0.57 per kilogram.
The impact of the market slowdown was visible in the drop in exports’ quantity and value. The value of exports was supported by unit prices, which were greater than they were the previous year. Unit costs, however, also started to decline.
Imports are increasing despite the drop
Despite the fact that they fell to $867 million in October, construction material imports were still $35% higher than they were in the same month previous year. Imports continue to have a high value.
Construction material imports dropped dramatically in quantity to 274 thousand 162 tons. In comparison to the prior months, the import unit price jumped to $3.16/kg.
A weakening trend is notable in several areas as well
Construction material export performance, which had been slowing and declining over time, only had value increases in three subsectors in October 2022. However, increases in unit prices were primarily responsible for these increases. There were reductions in quantity.
In seven of the eight sub-product groupings during this time, export unit prices were higher than they were in October 2021. Although prices for final goods have started to decline globally, they are still higher than they were a year ago.
Prefabricated building export unit prices on average fell in October 2022 compared to October 2021. Comparatively, the average export unit price of iron and steel goods is 10.4% higher than the same month last year, while the average export unit price of mineral products is 26% higher. Metal-based goods saw an increase in average export unit price of 7.3 percent, while wood and wood products saw an increase in average export unit price of 8.9 percent. The average export unit price increase for chemical-based goods was 7.5%.
Exports were less than what was obtained in October of the previous year in five of the eight sub-product groups. The volume of exports rose in three subsectors. The drops in quantity experienced last year can be attributed to the base effects of the substantial increases.
Compared to the same period previous year, exports of iron and steel products fell by 29.9 percent, while those of mineral, stone, and soil products fell by 21.7%. Exports of insulating materials fell by 6%, while exports of goods made of metal fell by 20.2 %.
In comparison to October 2021, the value of exports in three of the eight sub-product groups grew in October 2022. Five sub-product exports saw a decline in value.
Electrical materials and equipment had a 3.1 percent increase in exports, a 13.8 percent increase in chemical-based products, a 14.6 percent increase in wood and wood products, and a 23 percent decline in iron and steel products. On the other hand, metal-based products saw a 14.3 percent decline in exports.
