IMSAD Announces Foreign Trade Index Results

Turkey Construction Materials Manufacturers Association (Türkiye İMSAD) released November 2022 results of its monthly Foreign Trade Index. Türkiye İMSAD, the umbrella organisation of the construction materials sector, released the November 2022 results of its Foreign Trade Index, which it prepares monthly. According to the Index, the weakness seen in construction materials exports in September and October continued in November. The report shows that the contraction in export markets became pronounced in November. While one of the lowest export values of the year was recorded, annual construction materials exports fell to USD 34.1 billion. Construction materials exports in November 2022 reached USD 2.57 billion, representing a 5.8% decline compared to the same period of the previous year. Export volumes, which amounted to 4.04 million tons, fell 22.3% in November compared to November of the previous year. This volume stood out as the lowest export rate achieved in 2022. While the contraction effect in markets was felt sharply, the average annual export unit price in the construction materials industry showed a 21.2% increase in November 2022 compared to the same period of the previous year. While average export unit prices were USD 0.53/kg in November 2021, they reached USD 0.64/kg in November 2022. The average export unit price also increased compared to the previous month and recorded the highest average unit price of the year. Construction materials exports began losing value in the final quarter of the year. Depending on November 2022 export performance, the annual (last 12 months) exports fell to USD 34.1 billion in November. Export volumes declined to 58.73 million tons, while the average export unit price reached USD 0.58/kg annually.

Highest unit price of 2022 achieved in imports

Construction materials imports in November 2022 remained at USD 875 million and were 17.3% above November of the previous year. Construction materials imports in November 2022 amounted to 270,605 tons. As a volume, imports declined substantially. The construction materials industry import unit price reached the highest level of the year at USD 3.23/kg in November 2022.

Export performance of sub-sectors continues to decline

The report notes that in November 2022 compared to the same month of the previous year, only 3 of 8 sub-sectors showed increases in value. It was assessed that increases in sub-sectors were mainly driven by unit price rises, while quantity decreases were observed. In November 2022, all 8 sub-product groups achieved average export unit prices at levels higher than November 2021. Although global commodity and final product prices entered a declining trend, they still remained above last year's prices.

Large differences exist between unit prices

According to the report compiled by Türkiye İMSAD, the average export unit price of mineral, stone and earth products in November 2022 increased 24.2% compared to the same month of the previous year. The average export unit price of iron and steel products rose 5.8% compared to the same month of the previous year, while metal-based products' average export unit price increased 7.6%, wood and wooden products 14.9%, and chemical-based products 1.4%. In November 2022, exports in 6 of the 8 sub-product groups were below November of the previous year in terms of volume, while 2 sub-sectors saw increases. The reason for quantity declines was attributed to the base effect from the increase seen in the previous year. Volume-based export declines in November 2022 were 17% in iron and steel products, 26.4% in mineral, stone and earth products, 18.7% in metal-based products, and 21.8% in insulation materials. In November 2022 compared to November 2021, export values increased in 3 of the 8 sub-sectors. Export increases were 17.2% in chemical-based products, 2.6% in wood and wooden products, and 9.6% in electrical materials and equipment. Export values declined 12.2% in iron and steel products and 12.5% in metal-based products. Insulation materials exports also experienced a 17.9% loss in value in November compared to the previous November.