Türkiye İMSAD Publishes "October 2020 Sector Report"

Türkiye İMSAD has released its monthly sector report, closely monitored by construction industry and economic circles. According to the 'Türkiye İMSAD October 2020 Sector Report', the construction materials industry experienced a rapid recovery in the third quarter based on industrial production, export and domestic sales data. Following the contraction that occurred in the second quarter due to the Covid-19 pandemic, the third quarter saw rapid growth of 14.2 percent in construction materials industry production and exports reached USD 5.51 billion. The third quarter experienced a recovery that exceeded expectations, with strong expansion in both domestic and foreign demand. The 'October 2020 Sector Report' prepared by Türkiye İnşaat Malzemesi Sanayicileri Derneği (Türkiye İMSAD), the umbrella organization of the construction materials sector, contained the following findings: The construction materials industry had a difficult year in 2019 due to contraction in the construction sector. Following the contraction in the first half of 2019, construction materials industry production declined 11.5 percent in the third quarter and showed 0.1 percent growth in the final quarter. Construction materials industry production grew 8 percent in the first quarter of 2020. However, due to the Covid-19 pandemic, production contracted 8 percent in the second quarter. In the third quarter, construction materials industry production experienced rapid growth of 14.2 percent. Strong expansion occurred in both domestic and foreign demand.

Significant export growth in the third quarter

Construction materials exports weakened in the first quarter of 2020 due to the adverse effects of the Covid-19 pandemic and declined to USD 5.08 billion. The main impact on exports occurred in the second quarter of the year and exports fell to USD 4.34 billion. In the third quarter, construction materials exports experienced rapid recovery and exports reached USD 5.51 billion. Thus, the third quarter export volume of 2019 was also achieved.

Domestic sales surged in the third quarter

Construction materials domestic sales weakened in 2018 and declined significantly in 2019. Following the financial shock experienced in 2018, the construction sector showed a sharp contraction in 2019. Accordingly, construction materials domestic sales also declined. The decline in sales continued in the first quarter of 2020, and in the second quarter, domestic sales contracted sharply due to Covid-19 impact. In the third quarter, construction materials domestic sales experienced significant growth. The construction sector, making extensive use of credit support provided due to the Covid-19 pandemic, focused on rapidly completing ongoing projects. Consequently, significant demand for construction materials emerged. Domestic sales in the third quarter also surpassed pre-Covid-19 sales levels.