IMSAD Announces Foreign Trade Index Results

IMSAD Releases Foreign Trade Index Results The Construction Materials Manufacturers Association of Turkey (İMSAD) has announced the August results of its Foreign Trade Index. Despite market slowdown, construction materials export performance regained momentum in August, with annual exports reaching a new record of USD 34.78 billion. According to the Construction Materials Industry Foreign Trade Index prepared by İMSAD, the umbrella organization of the construction materials sector, export performance regained pace in August despite market slowdown. Exports rose 5.5 percent in value compared to August of the previous year, reaching USD 2.99 billion. This represented the fourth-highest monthly export by value for the year. While exports rose in value, they declined 11.4 percent in volume compared to August of the previous year, reaching 5.18 million tonnes. The average annual export unit price for the construction materials industry rose 20.8 percent compared to August of the previous year, increasing from USD 0.48/kg to USD 0.58/kg. As high performance was achieved in export values, imports also increased. Construction materials imports in August 2022 reached USD 920 million, up 24.5 percent from the previous year. In volume terms, construction materials imports in August totaled 315,466 tonnes. August recorded the third-highest monthly imports both by value and volume for the year. The average import unit price for the construction materials industry reached USD 2.92/kg in August.

Annual exports at historic high

Building on August export performance, annual construction materials exports reached a new historic record of USD 34.78 billion. Annual exports in volume terms reached 62.3 million tonnes, with the annual average export unit price at USD 0.56/kg. While high export performance set new records, the impact of market slowdown showed itself through volume declines. Value-side increases were driven by export unit prices that remained higher than the previous year. The effect of declining prices is expected to be reflected in the final months of the year.

Sub-sectors showed differences when compared to the same month of the previous year

Construction materials export performance by sub-sector showed differences when compared to August of the previous year. Value increases realized in seven sub-sectors were driven largely by unit price increases. Volume declines were observed. In August, export unit prices rose in seven of the eight sub-product groups compared to the previous year. While global commodity and end-product prices have been in downward trend, they remain above summer season prices of the previous year. In August 2022, the average export unit price for iron and steel products rose 6.4 percent compared to August of the previous year, mineral, stone and earth products rose 25.6 percent, and metal-based products rose 18.2 percent. During this period, the average export unit price for insulation materials rose 16.1 percent and wood and wooden products rose 24.7 percent. In August 2022, export volumes in four of the eight sub-product groups exceeded August of the previous year, while four sub-sectors experienced declines. Base effects from high growth rates achieved in the previous year were evident in volume declines. In August 2022, export volume increased 20.9 percent in chemical products and 44 percent in prefabricated structures compared to August of the previous year. Iron and steel product exports declined 6.9 percent in volume, mineral, stone and earth products declined 14.5 percent, and metal-based products declined 4.4 percent. In seven of the eight sub-product groups, exports rose in value in August 2022 compared to August 2021. Export value rose 19.9 percent in chemical-based products, 55.2 percent in prefabricated structures, and 13 percent in metal-based products, while declining 1.5 percent in iron and steel products.

Industrial export performance recovered in August

Turkey's industrial exports, which declined in July due to reduced working days, rose again with normalization in August. Industrial product exports increased in value to USD 15.32 billion, but remained lower compared to before July. In volume terms, with similar movement, exports rose in August compared to the previous month but fell below the pre-July level. In August 2022, Turkey's total industrial product exports reached 9.26 million tonnes in volume terms, affected by market slowdown. Average unit prices in industrial goods exports were USD 1.47/kg in August of the previous year, rising to USD 1.65/kg in August of this year. While higher export unit prices compared to the previous year continue to contribute to exports, this effect is expected to diminish in the coming months.