AKMİB Reports $3 Billion in Exports

AKMİB Achieves USD 3 Billion in Exports Mediterranean Chemical Substances and Products Exporters Association recorded USD 701 million in exports in May with a 25 percent increase compared to the same period last year Mediterranean Chemical Substances and Products Exporters Association (AKMİB) Board Chairman Saadettin Çağan said that in May they achieved USD 701 million in exports, representing a 25 percent increase compared to the same period last year, and that export volume for the first five months of the year exceeded USD 3 billion. Chairman Saadettin Çağan noted that with global inflation running high and price fluctuations in raw materials causing significant reductions in exporters' working capital, he stated that while the Central Bank's decision to increase obligations for exporters using TL rediscount credit might bring temporary solutions in some sectors in the short term, permanent solutions are needed to open the way forward for exports and exporters as a country.  

Our sector's access to rediscount credit will become more difficult

While evaluating the reduction in rediscount credit interest rates and extension of maturity as a positive development, Chairman Çağan noted that stricter foreign exchange conversion and foreign exchange purchase commitments would bring a series of difficulties in sectors with high import dependency such as the chemical industry. "This move will primarily benefit sectors with TL-denominated costs or those with low import raw material needs in credit usage. However, for sectors like our chemical industry where raw material imports are significant, accessing this credit will become more difficult under current conditions. We believe it would be beneficial for the country's exports if the Central Bank reviews its decision and expands the scope of this instrument or approaches it on a sectoral basis," he stated.

We achieved record-level increases in South Africa, Egypt and Singapore

Chairman Çağan, who evaluated the performance of Turkey-wide sector exports and regional exports in detail, reported that AKMİB supported sector exports at USD 2.79 billion level in the fifth month of the year at a rate of 22.7 percent. Noting that they achieved significant gains in African and Asian markets, Chairman Çağan said, "In May, we achieved our largest exports in the South African market with a 651.2 percent increase and a value of USD 197.2 million. This market was followed respectively by Egypt with a 304.9 percent increase and a value of USD 528 million and Singapore with a 9,727 percent increase and a value of USD 50.2 million. Additionally, we recorded record-level increases in our exports to Togo, Belgium and Romania," he explained.

Three product groups accounted for 91.9 percent of our regional exports

Noting that AKMİB marketed 712,683 tonnes of products in global markets in May and that regional exports consisted of three product groups at 91.9 percent, Chairman Çağan continued as follows: "Mineral fuels and mineral oils, which we reached an export value of USD 476.1 million with a 19.7 percent increase in May, accounted for 74.8 percent of our Association's foreign sales. Plastics and plastic products, with a 73.5 percent increase and an export value of USD 77.2 million, represented 12.1 percent of our regional exports. Inorganic chemicals, which we reached a value of USD 32 million with a 33.4 percent increase, accounted for 5 percent of our Association's exports during this period."   Chairman Çağan also stated that AKMİB's exports between January-May 2022 increased by 71 percent compared to the same period last year, reaching USD 3,077 million.