The construction sector, which is the locomotive of the economy with the demand and employment potential it creates in more than 200 sub-sectors, besides the increase in rebar prices by 116 percent, it also has similar problems in cement, which is another important input. Stating that the rapid rise in basic input prices brought the industry to a standstill, Turkish Contractors’ Association (TMB) Chairman M. Erdal Eren pointed out that there has been a price increase of more than 60% in cement in the last year.
Eren emphasized that a fair environment should be created, especially in cement prices, in line with market conditions, in order not to disrupt urban transformation projects, which are mainly carried out with private sector investments as well as public investments.
Regarding the increases in cement prices, a meeting was held with the industry stakeholders on 9 June 2021 under the chairmanship of Mehmet Muş, the Minister of Trade. In addition to TMB President Erdal Eren, representatives of the Turkish Union of Chambers and Commodity Exchanges, the Turkish Cement Manufacturers’ Association, the Construction Contractors Confederation, the Central Anatolian Exporters’ Unions General Secretariat, the Concrete Manufacturers Association and the Turkish Construction Industrialists Employer’s Union attended the meeting.
Speaking at the meeting, TMB Chairman Eren said: “With regard to the great price increase we have experienced in cement, this time in terms of our basic input costs, we thank our Minister of Commerce, Mehmet Muş, for bringing all relevant stakeholders together and leading the way to find solutions to the current problems with a common mind. Cement prices, which are at the forefront of the basic inputs of the construction sector, which is of great importance for the economy in general with its impact on many sub-sectors and employment potential, have been on a rapid rise recently. It is not possible to explain the high price increase with the increase in exchange rate and PPI observed in the same period.”
‘A fair environment in prices should be created in order to accelerate the urban transformation’ Eren continued as follows: “Urban transformation projects and housing investments are of great importance in order to strengthen urban structures against earthquakes, which is the reality of the country, to expand safe construction to ensure that citizens do not suffer loss of life and property, and to reach modern urbanization targets as soon as possible. In order for the urban transformation projects, which are being carried out with private sector investments, to be implemented without interruption, a stable environment in parallel with the market conditions and fair environment should be created in the prices of cement as well as iron and steel products. We
expect our cement producers, who are exporting to abroad at a much lower level than world prices on a foreign exchange basis, to make sacrifices in domestic market prices, at least under the difficult epidemic conditions we are experiencing.”
‘The right to impose price differences and liquidation has become essential’
Pointing out that public investments may also experience serious disruptions due to the unforeseen cost increase in cement in addition to other inputs, Eren said: “We reiterate our need for regulation that includes a realistic price differential and the granting of unconditional liquidation rights to meet cost increases in public projects.”