Chemicals Became the Industry with the Highest Growing Exports

Chemicals Sector Recorded Highest Export Growth in February

According to data from Istanbul Chemicals and Chemical Products Exporters Association (İKMİB), chemical sector exports reached USD 2.4 billion in February. Industry exports increased 43.97% compared to February of the previous year. Two-month exports for the sector grew 37.26% and surpassed USD 4.5 billion. Chairman of the Board of Directors of Istanbul Chemicals and Chemical Products Exporters Association (İKMİB) Adil Pelister commented on February's export figures: "Our country achieved 11% growth in 2021. In exports, which contributed 4.9 points to this growth, our chemical industry set a record as the second-largest exporting sector with USD 25.4 billion in exports. Following January of this year, our industry's exports rose 43.97% in February year-on-year and reached USD 2.4 billion. Industry exports grew 37.26% in the two-month period this year, totalling USD 4.543 billion. Our chemicals industry maintained its position as the second-largest exporter in February. Additionally, it ranked first among sectors with the highest export increases. The top three product categories exported in February were plastics and products, mineral fuels and mineral oils and products, and inorganic chemicals. The leading three export destinations were Germany, Italy and the Netherlands. For sustainable growth of our industry and country, focus must be placed on high value-added domestic production that embraces green transformation. Recently, rising energy costs and commodity prices worldwide persist due to the Russia-Ukraine crisis. As a chemicals industry 70% dependent on foreign raw materials, we closely monitor these developments. To mitigate these challenges, state support for our sector—including VAT reductions, SCT reductions, and energy cost cuts—is essential. Recently, a CGF package worth 60 billion was announced. Additionally, Export Promotion Inc, established by TIM and Eximbank to provide special support and guarantees to exporters, commenced operations this month. We trust these supports, which are vital for our exporters, will expand and benefit more of our companies."

Germany Led Export Destinations in February

Germany topped export destinations in February. Countries following Germany in the top ten were Italy, the Netherlands, Lebanon, France, the USA, Morocco, Iraq, Spain, and the UK. Among the top ten countries, exports to Morocco showed the highest increase at 277.64%. Chemical exports to Germany reached USD 131.690 million in February, a 53.89% increase year-on-year. The five leading product groups exported to Germany in February were plastics and products, rubber and rubber products, pharmaceuticals, various chemical agents, and essential oils, cosmetics and soap.

Plastics and Products Ranked as Top Export Sub-Sector in February

In February, plastics and products within the chemical substances and products category led chemical exports at USD 846.948 million. Mineral fuels, mineral oils and products placed second with USD 526.823 million in exports, while inorganic chemicals ranked third with USD 237.776 million in exports. Following inorganic chemicals, the remaining top ten sectors were rubber and rubber products, essential oils cosmetics and soap, pharmaceuticals, paint varnish ink and their products, various chemicals, organic chemicals and fertilizers. In February, the fertilizers segment recorded the highest export growth among sub-industries at 134.72%.