Cement Production Rises to 36.7 Million Tons

TÜRKÇİMENTO members' total cement production rose 7.7% to 36.7 million tonnes in the first half of 2023 compared to the same period of the previous year, while domestic sales also increased 14.4% to reach 28 million tonnes. TÜRKÇİMENTO, the umbrella organization of the cement sector, released production and sales figures for the first half of 2023. TÜRKÇİMENTO members, representing 94% of the sector, increased their total production to 36.7 million tonnes in the January-June period of 2023, up 7.7% compared to the same period of the previous year. During the 6-month period of 2023, domestic sales also reached 28 million tonnes, up 14.4%. In the January-June period of 2023, approximately 21.8% of the produced cement was exported. The sector entered 2023 with growth in the domestic market and a decline in exports, driven by the base effect from January 2022. The increase seen in March continued into May, though it stalled in April due to holiday effects. In June, domestic sales growth slowed again due to holiday effects. Regionally, growth in domestic sales was observed in all regions.

Turkey Cement Manufacturers Association (TÜRKÇİMENTO) Board Chairman Fatih Yücelik made the following assessments regarding the first half of 2023:

"Our sector ended 2022 with a tonnage contraction in both domestic and foreign sales, impacted by the downsizing in the construction sector. In the first half of 2023, we experienced increases in production and domestic sales. However, it is impossible for our sector to remain unaffected by rising labor costs and energy prices. We expect a different and more positive picture to emerge in the second half of the year compared to the first half. We anticipate that urban renewal efforts triggered by the earthquake disaster we experienced and ongoing infrastructure projects will increase cement demand in our country. As is known, the factors that most influence cement sector growth are the housing sector and infrastructure investments. We are a sector with more than sufficient production capacity to meet these investments." According to provisional data from the Exporters Unions, total cement sector exports in the January-August 2023 period declined 19.3% in value terms to USD 870 million compared to the same period of the previous year. Total export volume decreased 31.7% during the 8-month period, falling to 13.4 million tonnes. The decline in clinker exports reached 63.5% by volume and 60.3% by value. Of the sector's 8-month total export of 13.4 million tonnes, 11 million tonnes comprised cement and 2.4 million tonnes clinker.