Chemical sector to offset export losses with new markets

According to data from İKMİB (Istanbul Chemical Manufacturers and Exporters Association), chemical exports in October declined 2.93% in volume to 1.374 million tonnes and fell 4.84% in value to $1.244 billion compared with the same month last year.

Chemical exports for the first ten months of the year reached $11.554 billion in value. The main reasons for the export decline are the continuing problems in neighboring countries, which rank among chemistry's most important markets, and falling export prices.

Despite the contraction experienced in October, the chemistry sector maintained third place among the sectors with the highest exports with $1.244 billion in shipments, behind automotive and apparel and confectionery, continuing to contribute to the country's economy.

The countries to which the sector exported most last month were, in order: Egypt, Iraq, Germany, Italy, United Arab Emirates, Iran, Spain, Singapore, Saudi Arabia and United Kingdom.

While exports to Egypt continued to increase in October, exports to Singapore surged 2,180% to $39.201 million and managed to enter the top ten countries.

Looking at October chemical export figures by subsector, Plastics and Products, which ranked first, saw volumes decline 11.29% and values fall 12.76%.

In the past month, plastic and products exports reached 187,000 tonnes in volume and $408.479 million in value compared with the same period last year.

During this period, the top ten countries for plastic exports were Iraq, Germany, United Kingdom, Iran, Israel, France, Italy, Bulgaria, Romania and Egypt, while export losses in all countries except Israel and France drew attention.

In addition to plastics and products, declines were also recorded in exports of other chemistry subsectors such as cosmetics, paints and rubber.

Chemistry sector exports for the January-October period reached 13.711 million tonnes in volume and $11.554 billion in value. During this period, chemistry exports declined 1.29% by volume and 10.33% by value compared with the corresponding period of 2015.

The top ten countries for chemical exports during the ten-month period were Germany, Egypt, Iraq, Iran, Italy, United Kingdom, USA, Greece, Netherlands and Saudi Arabia.

Noting that developments in exports cannot be assessed independently of the global economy, Murat Akyüz, Chairman of the Board of İKMİB, stated: "Developments in neighboring countries directly affect our exports. October's figures clearly demonstrate this.

The contraction in world trade and the decline in export prices are also reducing our export performance. While exports by volume are nearly at the same levels as last year, we are experiencing significant losses in value. We need to increase our unit export prices and the added value we create.

The way out of the export bottleneck lies in accelerating investment in technology, R&D and branding. Chemistry is one of the strategic sectors with the highest added-value creation capacity in Turkey's economy. We view our government's new export support measures very positively.

The decision to triple export support and issue green passports to exporters is important in this regard. As chemistry exporters, while seeking alternatives to markets where we have suffered losses, we are also taking steps that will contribute to increasing added value in our exports.

We are continuously conducting national participation organizations at important international trade fairs, trade and purchasing delegations embracing the different production branches of our sector. This year we are holding the 6th Chemistry R&D Project Marketplace.

Along with our support for design, which is as important a component of added value as R&D, we are not slowing our promotional activities," he said.

October 2016 chemical sector exports

Which countries received the most chemical exports in October 2016?

2016 chemical exports