Chemical Sector Exports $7 Billion in First Half of the Year

United States Leads June Exports

Chemical exports rebounded in June. According to data from the Istanbul Chemical Substances and Products Exporters Association (İKMİB), chemical exports in June reached 1 million 479 thousand tonnes with a 5.34% increase in volume compared to the same month last year, and USD 1 billion 332 million with a 6.41% decline in value. In the first half of the year, the chemical sector exported 8 million 492 thousand tonnes in volume and USD 7 billion 40 million in value, entering the second half of the year with optimism. The chemical sector, which has been heavily pressured by the slowdown in the global economy and regional political instability, found relief in the volume-based increase in June export figures. Compared to June 2015, June 2016 chemical exports reached 1 million 479 thousand tonnes with a 5.34% increase in volume and USD 1 billion 332 million with a 6.41% decline in value. Commodity prices were instrumental in the value-based decline. A notable development last month came from the United States. The United States, which has been increasing its share of chemical exports in recent months, topped the rankings as the leading export destination in June.

Exports to the United States increased 387.22% in volume and 155.72% in value, reaching USD 75.1 million and taking the lead among the countries where the most exports were made. The United States was followed by Germany, Iraq, Egypt, Iran, United Kingdom, Italy, Greece, Romania and Azerbaijan.

In the first half of the year, the chemical sector reached a total of USD 7 billion 40 million in exports. During this period, chemical exports declined 2.72% by volume and 11.79% by value. The countries with the highest exports in the first half were ranked as follows: Germany, Egypt, Iraq, Iran, Italy, United States, Netherlands, United Kingdom, Saudi Arabia and Greece. Evaluating the first-half export figures, Istanbul Chemical Substances and Products Exporters Association (İKMİB) Board Chairman Murat Akyüz stated, "Since the beginning of the year, we have faced many setbacks that could have disrupted our exports. Nevertheless, our chemical exports rebounded in June. Just before the figures were announced, normalization of relations with Israel and Russia provided hope for our exporters for the second half. Although our exports to these countries did not increase dramatically, we believe they will reflect positively on the figures within a few months. The end of the tension with Egypt, one of our most important export markets, and the softening of relations between the two countries are among our greatest expectations at the moment. The share of neighboring countries in our exports is undeniable. I believe that our exporters, who have been negatively affected by the contraction in global markets and the slowdown in world trade, will be relieved to a significant extent. This will also enable us to restore a more balanced market strategy." Emphasizing that the Iranian market is also gaining importance during this period, Akyüz said: "I believe that we need to quickly implement steps to turn the lifting of sanctions on Iran to our country's advantage. We cannot afford to be left out of the global game in Iran, which has whetted the appetite of many countries, particularly Europe. It should be noted that Iran is not as easy an export market as thought. At the end of July, as İKMİB, we will visit Iran with companies from the cosmetics sector and examine the current situation in the country firsthand. Iran ranks among the countries to which we export the most cosmetics. Despite the high quality and brand perception of Turkish products, Turkish companies may be required to meet conditions for exporting to Europe. These are negative developments for our exports."