With an export value of 2.71 billion dollars, the highest figure in the foreign trade of the construction materials industry since September 2022 was reached after the earthquake. Reports published for March showed an increase of nearly 600 million dollars compared to February, but a decline of 18.3 percent compared to March of the previous year.
Exports entered a recovery trend
The report points out that the effects of the earthquake in February on foreign trade have diminished and comparisons with the same period last year reveal a strong base effect in exports. The source of the base effect was the spike in prices and trade restrictions caused by the Russia-Ukraine war in March last year. Last year, price increases and demand for Turkey led to very high exports.
However, according to the results of March 2023, exports started to rise for the first time in 6 months and exceeded 4 million tons in quantity. The limiting effect of the earthquake on exports in terms of quantity also diminished in March, while capacity utilization partially recovered. According to the report, the average annual export unit price of the construction materials industry increased by 15.5 percent in March compared to March last year. Thus, the average annual export unit price in March 2023 reached 0.67 dollars/kg.
Monthly imports exceeded 1 billion dollars
Turkey IMSAD report, which is closely followed by economic circles, drew attention to the record increase in imports along with the improvement in exports. Accordingly, imports of construction materials industry increased by 11 percent in March 2023 in the same period of the previous year and exceeded 1 billion dollars for the first time. In March 2023, imports of construction materials amounted to 380 thousand 525 tons. In terms of quantity, the highest imports were made after July 2017. The average annual import unit price of construction materials industry decreased by 7.7 percent in March 2023 compared to the same period of the previous year with 2.75 dollars/kg.
Annual exports continue to decline
Based on the export performance in March, annual (last 12 months) exports of construction materials decreased to 32.33 billion dollars. Annual exports decreased by 2 percent in value compared to the same period of the previous year. In March 2023, annual exports decreased by 18.1 percent in quantity compared to the same period of the previous year to 53.29 million tons. The average annual export unit price increased by 19.6 percent compared to the same period of the previous year to 0.61 dollars/kg. The report stated that exports of construction materials, which have begun to leave behind the effects of the earthquake, were negatively affected by the slowdown in markets and the appreciated Turkish lira. It was emphasized that imports may break new records if the Turkish lira remains valuable.
Different export trends in sub-sectors
The export performance of sub-sectors in the construction materials industry was realized well above the previous February in March 2023. However, different trends emerged when compared to the same month of the previous year. Accordingly, in March 2023, average export unit prices were higher in 5 out of 8 sub-product groups compared to the same period of the previous year, while they decreased in 3 sub-sectors.
In March 2023, the average export unit price of mineral, stone and earth products increased by 16.2 percent compared to the same month of the previous year. The average export unit price of iron and steel products was 13.7 percent higher compared to the same month of the previous year. Increases in other sub-products remained low. The average export unit price of prefabricated structures fell by 33.7 percent and the average export unit price of metal-based products fell by 6.6 percent.
In March 2023, exports in 5 out of 8 sub-product groups were realized below March of the previous year in terms of quantity. In 3 sub-product groups, exports exceeded March 2022 in quantity. The decline in quantity was mostly due to the slowdown in markets. In this period, exports decreased by 41.4 percent in iron and steel products and 27.5 percent in mineral, stone and soil products. Exports of metal-based products decreased by 15.1 percent and prefabricated structures by 32.9 percent. Exports of chemical-based products increased by 10.5 percent in quantity.
In March 2023, exports of 5 out of 8 sub-product groups decreased in value compared to March of the previous year. Exports of 3 sub-product groups increased in value. In March 2023, the decrease in value was 33.4 percent in iron and steel products, 20.7 percent in metal-based products, 15.8 percent in mineral, stone and soil products and 65.1 percent in prefabricated structures. Exports increased by 19 percent in value in chemical-based products and 9.5 percent in electrical materials and equipment.
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