Evaluating the export figures of the chemical industry in July, Adil Pelister, Chairman, Istanbul Chemicals and Products Exporters’ Association (IKMIB) said, “The increase in demand after the pandemic, especially the increase in commodity prices, and the change in the supply chain, as well as the demand shifting to our country, as well as the production performance of our companies in the chemical industry, will increase our exports. We can say that it has a positive impact. On the one hand, we try to move forward without reducing our export performance, on the other hand, we try to resist inflationary pressures. Global economic developments, war-induced tensions and crises continue to affect the whole world and sectors directly and indirectly. In the second half of the year, recession is expected all over the world. In fact, stagflation expectations arise as both recession and inflation will take place together. Especially in the European Union region, where we make about half of our exports, if there is a real stagflation or recession, this may have a negative impact on our exports.
According to the data of Istanbul Chemicals and Products Exporters’ Association (IKMIB), the chemical industry realized exports worth $2.95 billion in July. The chemical industry, which became the export leader for the fifth time in a row in July, grew by 41.8 percent with an export of 19.7 billion dollars in the first seven months.
There is such a risk in the last quarter of the year. However, we hope that our country will be less affected by the possible recession due to the logistics advantage of our country and the fact that it is more preferable in terms of product quality. It is of great importance to increase export market diversity, to manage capital and finance correctly, to increase the export kilogram unit value with easy access to finance, high value-added production. Due to the absence of inflation accounting, companies continue to pay taxes on their foreign exchange earnings. This accountingrelated situation needs to be resolved as soon as possible.”
Most exported country: Netherlands The Netherlands was the country to which the most exports were made in July. Other countries in the top ten following the Netherlands in July were Bulgaria, South Africa, USA, Russia, Italy, Germany, Iraq, France and Romania. Among the top 10 countries in July, the highest increase was in Bulgaria with 483.47 percent.
Chemical exports to the Netherlands in July amounted to 318 million 365 thousand dollars. Compared to the same period last year, it increased by 227.94 percent. The top five product groups exported to the Netherlands in July were “mineral fuels, mineral oils and products”, “plastics and their products”, “inorganic chemicals”, “organic chemicals” and “miscellaneous chemicals”, respectively.
In the January-July period of 2022, the countries to which the most chemicals were exported were the Netherlands, USA, Italy, Romania, South Africa, Germany, Lebanon, Spain, Iraq and Belgium, respectively.
“Mineral fuels and products” exported the most
In July, exports of mineral fuels and products in chemical substances and products product groups ranked first in chemical exports with 1 billion 137 million 681 thousand dollars. While plastics and its products took the second place with an export of 767 million 392 thousand dollars, the export of inorganic chemicals took the third place with 265 million 352 thousand dollars. Following ‘inorganic chemicals’, other sectors in the top ten are; ‘essential oils, cosmetics and soap’, ‘paint, varnish, ink and preparations’, ‘organic chemicals’, ‘rubber, rubber goods’, ‘pharmaceutical products’, ‘fertilizers’ and ‘various chemicals’.