Chemical Exports Boosted by EU and Russia

The chemical sector maintained momentum in the first half of the year and remained the third sector making the largest contribution to Turkey's economy. According to data from the Istanbul Chemical Substances and Products Exporters Association (İKMİB); chemical exports in the first half of the year reached 9 million 477 thousand tonnes with an increase of 11.79% in volume compared to the same period last year, and USD 7 billion 955 million with a rise of 13.17% in value. In January-June 2017 exports, EU countries accounted for the largest share at 35%. The increase in exports during the first half of the year brought smiles to chemical manufacturers. The sector's first-half exports reached 9 million 477 thousand tonnes with a volume increase of 11.79% compared to the same period last year, and USD 7 billion 955 million with a value increase of 13.17%. In addition to demand from EU countries, increases in exports to the USA and Russia, which are among the most important markets, also supported the upward trend. Exports to the USA reached USD 334 million 337 thousand with an increase of 36.74% and placed the country in 5th position in the ranking of countries with the highest exports. Russia ranked 18th with a 35.21% increase and exports of USD 144 million 653 thousand. During January-June 2017, the top 10 countries where the chemical sector achieved the most exports were, respectively; United Arab Emirates, Germany, Iraq, Egypt, USA, Italy, Iran, Spain, Singapore and Greece.

EU Countries Accounted for 35% of Chemical Exports in the First Six Months

Demand from European Union countries continues to contribute to chemical exports. In the first half of the year, the EU's share of chemical exports increased to 35%. Germany, Italy, Spain and Greece were among the top 10 countries where the chemical sector achieved the most exports during this period.

Leadership by Sub-Sectors in the First Half: Plastic Products

In the first half of the year, plastics and plastic products provided the largest contribution to chemical exports by sub-sector, while the strongest growth occurred in mineral fuels and oils. During January-June 2017, plastics and plastic products maintained their leading position with a 1.17% increase and exports of USD 2 billion 545 million. Mineral fuels, oils and products ranked second with a 61.82% increase and exports of USD 2 billion 67 million, while rubber and rubber articles took third place with a 3.20% increase and USD 607 million 586 thousand. Looking at the sector's exports on a monthly basis, June exports reached 1 million 447 thousand tonnes with a 1.64% decrease in volume compared to the same month last year, and USD 1 billion 291 million with a 2.57% decrease in value. The top ten countries where the sector achieved the most exports during this period were; Egypt, USA, Germany, Iraq, Spain, Italy, Iran, Romania, United Arab Emirates and Bulgaria. Murat Akyüz, Chairman of the Board of the Istanbul Chemical Substances and Products Exporters Association (İKMİB), evaluating the chemical sector's first-half performance, stated: "Looking at our export figures obtained in the first six months, we are pleased both for our sector and our country. As exporters, we are aware of our responsibility in helping Turkey achieve its growth targets. Our chemical exports achieved increases in both volume and value in the first half of the year. Our manufacturers' determined attitude and work dedication, the gradual overcoming of problems in countries we face difficulties with, and factors such as increased demand from EU countries continue to support the upward trend in our exports. On the other hand, we are beginning to see the positive effects of recovery in Russia. Our hope is that it will continue and increase in the coming months. Even if political relations normalize, unfortunately the reflection of this on trade takes much longer. We experienced the same situation with exports to Russia. Given the first-half export performance, as the chemical sector we are hopeful about the second half of the year and believe we will sustain this positive picture. We believe that especially through incentives that provide financial relief to our manufacturers, bolder steps can be taken."