Chemical Exports Reached $5.709 Billion in 5 Months

US and EU gain share in chemical exports

According to data from İKMİB, chemical exports during January-May 2016 reached 7.032 million tonnes by volume, down 4% year-on-year, and USD 5.709 billion by value, down 12.94% compared to the same period last year.

Chemical sector representatives, observing the prolonged normalization process in neighboring countries, have redirected their focus toward European Union member states. In the first five months of the year, half of the top 10 export destinations were EU countries. EU countries, which account for 38% of total chemical exports, saw an increase of nearly 10 percentage points.

The chemical sector, negatively affected by falling commodity and oil prices, continues to lose ground in exports, compounded by difficulties in neighboring countries.

According to İKMİB data, chemical exports during January-May 2016 totaled 7.032 million tonnes by volume, down 4% from the same period last year, and USD 5.709 billion by value, down 12.94% compared to the previous year.

The top 10 export destinations during this period ranked as follows: Germany, Egypt, Iraq, Italy, Iran, Netherlands, Saudi Arabia, United Kingdom, United States and Greece.

On a monthly basis, May 2016 chemical exports reached 1.222 million tonnes by volume, down 22.1% compared to May of the previous year, and USD 1.138 billion by value, down 17.6% year-on-year.

The top 10 export destinations in the previous month ranked as follows: Germany, Egypt, Iraq, United States, Iran, Netherlands, Italy, Saudi Arabia, Azerbaijan-Nakhchivan and United Kingdom.

In the previous month, EU member states continued to increase their share of chemical exports. Among EU countries, the standout performers in volume-based exports were Netherlands with a 118.22% increase and Germany with a 62.14% increase.

Exports to the United States, a crucial market for the chemical sector, surged to record levels in May. Exports to the US rose 239.72% by volume and 97% by value, elevating the country to 4th place among top export destinations.

Thus, exports to the US in the previous month reached USD 51.967 million.

Commenting on the May export figures for the sector, Murat Akyüz, Chairman of the Board of İKMİB, stated: "Continuously falling commodity prices and ongoing difficulties in neighboring countries are driving trade economics toward the normalizing EU region.

We see that EU countries, which account for 38% of total chemical exports, are experiencing growth of nearly 10 percentage points. Our companies, unable to export sufficiently to neighboring countries and the Middle East, are selling their products to EU member states.

However, we must not overlook the fact that exporting solely to the EU is risky. Our export companies should target at least three regions and diversify their export baskets, as difficulties in this region in previous years caused sharp declines in our exports."

Noting that falling commodity prices have influenced the downward trend in exports, İKMİB Chairman Murat Akyüz said: "We hope that commodity prices will stabilize in the second half of the year, which would increase both chemical exports and Turkey's overall exports.

Sharp currency fluctuations also stand out as a factor negatively affecting exporters. Unexpected currency swings in past periods produced poor results. We hope that with the new government, currency volatility will come to an end.

Despite the challenges, positive developments are also occurring. The anticipated transfer of Eximbank back under the Economy Ministry in the near future will create major advantages for our exporters," he said.

April 2016 chemical sector exports

Which countries received the most chemical exports in May 2016?

2016 chemical exports