Turkey has the Cheapest Cement in the World

Expressing that significant increases have been experienced in the main cost inputs of the cement sector, particularly in the last year, Yücelik said, “As cement producers, we have been unable to meet our production costs as a result of the increases in foreign currency rates. For example, the prices in petrocoke that is the most important cost item for the sector increased from the level of US$50-60 to US$140-150 in the last one-year period.”

Reminding that cement is a strategic product for the economy of the country, Fatih Yücelik continued as follows:

“Cement is a strategic product for the economy of the country. Turkey is the country having the cheapest cement price in the world. On the other hand, the argument that the cement prices pose a high rise in housing prices is not true. According to a report drawn up by METU, the share of cement in the cost of material of a first class building, excluding the land plot, varies between 1,7% and 3,2%. In spite of its very low share in housing costs, we consider it a substantially unfair approach that the cement sector is reflected as the cause of the increases in housing price.

Turkey's cement consumption declined by 11% in 2018 and by 29% in 2019, contracting for two consecutive years for the first time in its history. At the end of 2020, almost 40 million tons of excess capacity emerged. The contraction in domestic consumption during that period steered our companies toward exports.”

Necessary Contacts Have Been Made

Expressing that the Turkish cement sector will continue to carry out its activities in parallel with the free market conditions and provide support to the country's economy as always, President Yücelik said, “The increase experienced in imported inputs affected the costs of the cement sector as in all industrial sectors. As the sector, we have made the necessary contacts with the public for the solution of this issue. With all our stakeholders, we evaluated the ability to provide maximum benefit to our country in regards to both domestic market dynamics and to increasing export opportunities in the currently expected global recovery period after the pandemic. For this reason, our opinion is that it is not suitable to make statements any further.”