I. Overview
of Turkey's Cement Industry in 2017 In 2017, Turkey's overall economic growth reached 7.4%, while investment in Turkey's construction industry also increased by 10.2%. The cement industry plays a vital role in Turkey's economy-in 2017, Turkey's cement industry had a total revenue of nearly $3 billion (2.44 billion euros) and export revenue of nearly $530 million (430 million euros), while Turkey's cement industry provided jobs for 18,300 people. In 2017, the total output of Turkish cement was about 8,200 tons, compared with 7,690 tons in 2016, with an increase of about 7.7% in 2017. In the past year, 74.9 million tons of cement were sold domestically, of which 72.2 million tons were produced by members of the Turkish Cement Manufacturers Association (TCMA). In 2016, the domestic self-sold cement was 68.2 million tons, of which the members of the association undertook 66.8 million tons of cement, which increased by 9.8% and 8.1% respectively in 2017.
The development process of cement industry is closely related to the development process of construction industry. By the end of 2017, Turkey exported 7.9 million tons of cement and 4.9 million tons of clinker , with a year-on-year increase of 3.9% in cement exports and 30% in clinker exports, which is another blowout growth after 2016. The intervention of Syrian and American cement markets is the main reason for the slow growth of Turkish cement exports. Middle Eastern & Northern Africa (MENA), Turkey's largest cement export region, is gradually being occupied by American cement. In 2017, 44% of Turkey's cement exports were shipped to the Middle East and North Africa, while in 2016 and 2015, 52% and 64% of Turkey's total cement exports were shipped to these regions, respectively. Meanwhile, cement exports from the United States to the Middle East and North Africa accounted for 24%, 20% and 10% of the country's cement exports in 2017, 2016 and 2015, respectively.
Turkey's total annual cement exports in the future are expected to be 7.5 million tons to 8 million tons. Through the construction of new grinding stations, Turkey's total grinding capacity reached 8.3 million tons per year in 2017. At the same time, there are some ongoing construction projects, so the production capacity of cement and clinker will be further increased in the next few years. The cement industry has a higher demand for new production technologies due to the constant need to open up markets, such as cement roads and roadblocks in infrastructure. With the use of new technologies and roller compacted concrete road technology, concrete roads and barriers should play a more important role in Turkey's infrastructure construction, because their construction costs are almost the same as existing materials, but their maintenance costs are lower, and they are more adaptable to the challenges posed by climate and environmental changes. Cement production in Turkey is expected to grow by around 5% in 2018 due to the impact of real estate investment, infrastructure projects (such as high-speed rail, subway, highway) investment, and energy consumption investment aimed at reducing Turkey's dependence on foreign energy.
II. Production
of Turkey Cement Industry in 2017 In 2017, the total annual cement output of Marmara region was 20.5662 million tons, which was the largest cement production region in Turkey, but it increased by 7.24% year-on-year, ranking only fourth in the region. Because of the small base, the cement output of East Anatolia region increased by 16.65% year-on-year in 2017, leading the whole Turkey; Production in the Aegean and Mediterranean regions declined year-on-year in 2017. Cement produced in the Marmara region is mostly used for domestic sales, while cement produced in the Mediterranean region accounts for more than 60% of the country's exports.
Table 1 and 2: Cement data
of Turkey in 2017 Source: Turkish Cement Association
The Marmara region also ranked first in terms of total clinker production, and the region imported 53,200 tons of clinker in the whole year, while no clinker was imported from other regions. Five regions have also exported clinker, of which the Mediterranean region exported 3.1397 million tons in the whole year, which is also far more than other regions in the proportion of clinker exports.
Table 3 and 4: Clinker Data
of Turkey by Region in 2017 Source: Turkish Cement Association
In terms of production capacity, the clinker production capacity in the Mediterranean region reached 22.1699 million tons per year, and the cement output was 35.248 million tons per year, both of which ranked first in Turkey. However, the capacity utilization rate in the Mediterranean region is poor, and the cement capacity utilization rate is only 54.34%. On the contrary, although the production capacity of clinker and cement is less than that of the Mediterranean region, the utilization rate of both production capacity in Marmara region ranks first in the country, and the utilization rate of clinker production capacity reaches more than 100%.
Table 5 : Clinker and cement production capacity data
of Turkey in 2017 Source: Turkish Cement Association
III. Sales
of Turkey Cement Industry in 2017 As the largest exporter of cement in Europe, Turkey exported 7.9804 million tons of cement and 4.9322 million tons of clinker in 2017. Turkey exports 1.4067 million tons and 1.2732 million tons of cement to Syria and the United States respectively, which are also the main export destinations of Turkey's cement; Ghana, Colombia and Ivory Coast are the main export destinations of Turkey's clinker.
Table 6 : Top 10 cement exporting countries
of Turkey in 2017 Source: Turkish Cement Association
Table 7 : Top 10 Clinker Export Countries
of Turkey in 2017 Source: Turkish Cement Association
For domestic cement sales in Turkey, the cement produced in various regions is mostly used for the production of ready-mixed concrete, while the proportion of cement produced in the Mediterranean region sold directly to distributors is relatively high. In addition, a small amount of cement will be sold directly to the public or used for other purposes.
Figure: Cement sales and usage
in Turkey in 2017 Source: Turkish Cement Association