Plastics Industry Raw Material Import Dependency Analysis

PAGDER, the Association of Plastics Manufacturers, was established in 1969 to bring together manufacturing companies operating in Turkey's plastics sector. It is one of the most important civil society organizations in the plastics and plastics processing machinery sectors. [the_ad id="105219"] In 2016, Turkish plastic product output increased by 3.84%, reaching 9.09 million tonnes and a production value of USD 34.7 billion. The previous year's output was reported at 8.75 million tonnes. Despite economic, political and social crises during the year, the plastics sector achieved growth of approximately 3.84% at the end of 2016, exceeding Turkey's GDP growth rate. Turkish plastics production capacity ranks seventh globally and second in Europe. When considering 2023 export targets, it is necessary to increase raw material production and reduce foreign dependence ratios. In this context, an analysis of raw material import dependence for the Turkish plastics sector was conducted, taking into account the volume of raw materials produced in Turkey and Turkey's foreign trade data. Table 1 presents the annual production quantities of polyethylene, polypropylene and polyvinyl chloride raw materials actively produced in Turkey. Total production volume was 691.8 thousand tonnes in 2010 and 651.2 thousand tonnes in 2016. Examining the trends over the years, production showed a declining pattern from 2010 to 2014, followed by an increasing trend from 2014 to 2016. However, total production in 2016 was 5.8% lower than in 2010. Additionally, raw material import figures for the sector during the same period are presented in Table 2. Based on HS classification, plastic raw material imports in 2016 showed a consistently increasing trend compared to 2010, rising by a total of 38.5%. Additionally, export figures for the sector covering the same period are presented in Table 3. According to the table, based on HS classification, plastic raw material exports in 2016 declined by a total of 39.7% compared to 2010.

Assessment of Raw Material Supply Coverage

Using foreign trade data and raw material production data obtained between 2010 and 2016 in the Turkish plastics sector, the ratio of Turkey's raw material supply coverage was calculated. As can be seen from Table 4, domestic plastic raw material production met only 12.8% of Turkey's requirements in 2016. This figure is calculated based on three different raw materials—polyethylene, polypropylene and polyvinyl chloride—produced in Turkey, and does not include raw materials that are not produced domestically and are only imported. When raw materials that are not produced domestically are included, the raw material supply coverage ratio drops to around 9%.

Assessment of Plastic Raw Material Import Dependence

The plastic raw material supply coverage ratio, determined using foreign trade data and raw material production data obtained between 2010 and 2016 in the Turkish plastics sector, was calculated at 12.8% based on three different raw material HS classifications. Using these data, the plastic raw material import dependence ratio was calculated and presented in Table 5. According to the table, based on calculations for three different raw material HS classifications in 2016, the overall plastic raw material import dependence ratio was 87.2%. Additionally, import dependence in 2016 increased by 7.1% compared to 2010.

Raw Material Import Dependence Assessment by Product 3901 – Polyethylene

Foreign trade and production data obtained between 2010 and 2016 for polyethylene raw material with HS code 3901 in the Turkish plastics sector are presented comparatively in Chart 1. Based on these data, imports increased by 56.5% in 2016 compared to 2010, while production declined by 4.2% and exports declined by 58.5%. Based on these data, PE import dependence as of 2016 is calculated at 81.1%.

3902 – Polypropylene

Foreign trade and production data obtained between 2010 and 2016 for polypropylene raw material with HS code 3902 in the Turkish plastics sector are presented comparatively in Chart 2. Based on these data, imports increased by 46.5% in 2016 compared to 2010, while production declined by 5.2% and exports declined by 3.8%. Based on these data, PP import dependence as of 2016 is calculated at 94%.

3904 – Polyvinyl Chloride

Foreign trade and production data obtained between 2010 and 2016 for polyvinyl chloride raw material with HS code 3904 in the Turkish plastics sector are presented comparatively in Chart 3. Based on these data, imports declined by 1.4%, production declined by 11% and exports declined by 13.4% in 2016 compared to 2010. Using these data, PVC import dependence as of 2016 is calculated at 84.8%. Prepared by: Murat İnkün / Selin Portakal - PAGDER