IndexBox: Turkey's cement additives market rose 3.6% in 2018

The revenue of the prepared additives for cements market in Turkey amounted to US$637 million in 2018, growing by 3.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, prepared additives for cements consumption continues to indicate strong growth. The pace of growth was the most pronounced in 2010, when the market value increased by 38% y/y. Prepared additives for cements consumption peaked in 2018 and is likely to continue its growth in the near future.

Production in Turkey

Prepared additives for cements production in Turkey stood at 1.2 million t in 2018, surging by 7.9% against the previous year. Over the period under review, prepared additives for cements production continues to indicate a buoyant expansion. The most prominent rate of growth was recorded in 2012 when production volume increased by 25% year-to-year. Over the period under review, prepared additives for cements production reached its peak figure volume in 2018 and is expected to retain its growth in the near future.

In value terms, prepared additives for cements production amounted to US$632 million in 2018 estimated in export prices. Overall, prepared additives for cements production continues to indicate a resilient increase. The pace of growth appeared the most rapid in 2010 when production volume increased by 38% year-to-year. Over the period under review, prepared additives for cements production attained its peak figure level in 2018 and is expected to retain its growth in the near future.

Exports from Turkey

In 2018, the exports of prepared additives for cements, mortars or concretes from Turkey totalled 77K t, going up by 20% against the previous year. In general, prepared additives for cements exports continue to indicate a prominent increase. The most prominent rate of growth was recorded in 2011 when exports increased by 122% year-to-year. Over the period under review, prepared additives for cements exports reached their maximum in 2018 and are expected to retain this growth in the near future.

In value terms, prepared additives for cements exports amounted to US$35 million (IndexBox estimates) in 2018. Overall, the total exports indicated strong growth from 2007 to 2018: its value increased at an average annual rate of +10.6% over the last eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analysed period. Based on 2018 figures, prepared additives for cements exports decreased by 7.4% against 2014 indices. The pace of growth was the most pronounced in 2011 when exports increased by 53% against the previous year. Exports peaked at US$38 million in 2014; however, from 2015 to 2018, exports remained at a lower figure.

Exports by country

Georgia (16K t), Free Zones (12K t) and Iraq (12K t) were the main destinations of prepared additives for cements exports from Turkey, with a combined 52% share of total exports.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main countries of destination, was attained by Free Zones, while exports for the other leaders experienced more modest paces of growth.

In value terms, the largest markets for prepared additives for cements exported from Turkey were Iraq (US$7 million), Georgia (US$5.6 million) and Cyprus (US$3 million), together accounting for 44% of total exports. These countries were followed by Free Zones, Turkmenistan, Azerbaijan, Uzbekistan, Ethiopia, Bulgaria, Iran, the United Arab Emirates and Libya, which together accounted for a further 32%.

Iran experienced the highest growth rate of the value of exports, in terms of the main countries of destination over the period under review, while exports for the other leaders experienced more modest paces of growth.

Export prices by country

In 2018, the average prepared additives for cements export price amounted to US$458 per t, dropping by – 5.1% against the previous year. Overall, the prepared additives for cements export price continues to indicate an abrupt downturn. The pace of growth appeared the most rapid in 2010 an increase of 30% against the previous year. In that year, the average export prices for prepared additives for cements, mortars or concretes reached their peak level of US$1021 per t. From 2011 to 2018, the growth in terms of the average export prices for prepared additives for cements, mortars or concretes remained at a somewhat lower figure.

Prices varied noticeably by the country of destination; the country with the highest price was Ethiopia (US$1070 per t), while the average price for exports to Free Zones (US$164 per t) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was recorded for supplies to Ethiopia, while the prices for the other major destinations experienced more modest paces of growth.

Imports into Turkey

In 2018, the amount of prepared additives for cements, mortars or concretes imported into Turkey amounted to 5.3K t, lowering by – 63.4% against the previous year. Overall, prepared additives for cements imports continue to indicate a deep reduction. The pace of growth was the most pronounced in 2008 with an increase of 73% y/y. Over the period under review, prepared additives for cements imports reached their peak figure at 20K t in 2014; however, from 2015 to 2018, imports failed to regain their momentum.

In value terms, prepared additives for cements imports totalled US$8.8 million (IndexBox estimates) in 2018. Over the period under review, prepared additives for cements imports continue to indicate a perceptible reduction. The pace of growth appeared the most rapid in 2008 when imports increased by 80% y/y. Imports peaked at US$29 million in 2014; however, from 2015 to 2018, imports remained at a lower figure.

Imports by country

France (1.7K t), Germany (1.1K t) and Italy (361 t) were the main suppliers of prepared additives for cements imports to Turkey, together comprising 61% of total imports. These countries were followed by Canada, Slovakia, Belgium, Russia, the UK, India, the Netherlands and Romania, which together accounted for a further 28%.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main suppliers, was attained by Romania (+57.9% per year), while imports for the other leaders experienced more modest paces of growth.

In value terms, France (US$2.9 million), Germany (US$2.4 million) and Italy (US$796K million) constituted the largest prepared additives for cements suppliers to Turkey, together comprising 69% of total imports. Canada, Slovakia, Belgium, Russia, India, the UK, Romania and the Netherlands lagged somewhat behind, together comprising a further 19%.

Romania (+53.6% per year) recorded the highest growth rate of the value of imports, among the main suppliers over the period under review, while imports for the other leaders experienced more modest paces of growth.

Import prices by country

The average prepared additives for cements import price stood at US$1 666 per t in 2018, surging by 50% against the previous year. Over the period from 2007 to 2018, it increased at an average annual rate of +1.9%. The most prominent rate of growth was recorded in 2018 an increase of 50% y/y. In that year, the average import prices for prepared additives for cements, mortars or concretes reached their peak level and is likely to continue its growth in the immediate term.

There were significant differences in the average prices amongst the major supplying countries. In 2018, the country with the highest price was Italy (US$2203 per t), while the price for the Netherlands (US$477 per t) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Germany, while the prices for the other major suppliers experienced more modest paces of growth.

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