6.

0 ECONOMIC ANALYSIS OF CEMENT

Cement the most consumed substance in the world after water.

6.1 The General State of Sector in the World

World cement production increased in recent years, continued in 2009-2010 as in the
production and the production of cement reached 3 billion tones. The member countries of the
European Cement Association of world's total cement production constitute 8.6 % in the
production of cement. The largest production and consumption in Asia countries. Production
values for soma countries in the world shown in Figure 6.1.1. [11]
Million ton

China India USA Japain Turkey Iran

Figure 6.1.1 Production values of some countries,2009. [12]

China, India, America, Japan, Turkey are the major producers of cement industry in
the world. These world cement production according to region and main countries shown in
figure 6.1.2. [13]

Figure 6.1.2 World cement production, by region and main countries.

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 Thailand, China, Japan and Turkey, the most important countries in world
exports.Some of exporting countries shown in below in Figure 6.1.3 with rates of tones of
exports. Also, importing countries given in Figure 6.1.4.
Million ton

Indonesia
Indonesia
Thailand

Portugal
Portugal

Belgium
Belgium

Greece
Greece
Turkey
Turkey
Japain

Russia
Russia
Korea
Korea
China

Spain
Spain

India
India
Figure 6.1.3 Exporting Countries, 2009 (International Trade Center, Trade Map)
Million tone

Bangladesh

Australia
Vietnam

Ukraine

Ghana
China

Egypt
Spain

India
Italy

Figure 6.1.4 Importing Countries,2009 ( International Trade Center,Trade Map)

6.2 The General State of Sector in Turkey

Turkey began in 1911 and showed a high development especially after the year 1970.
As seen cement production capacity increased in Turkey day to day. But in 1991, Turkish and
World economies were badly effected by the Gulf Crisis. Cement consumption decreased at
that days. After this crisis cement market is opened and exportation of cement started again.
In 1911 only 20 thousand tons of production capacity in cement sector, today it is observed in
over 66 million tonnes. [3]

Table 6.2.1 Turkish production and consumption of cement industry [14]

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 Years Production(million tone) Consumption(million tone)
1960 2.04 1.97
1970 6.37 6.07
1980 12.98 12.08
1990 24.42 22.65
2000 35.95 31.51
2001 29.96 25.08
2002 32.76 26.81
2003 35.10 28.11
2004 38.80 30.67
2005 42.79 35.08
2006 47.40 41.61
2007 49.26 42.46
2008 51.43 40.57
2009 54.20 39.96
2010* 46.40 46.50

Cement sector in Turkey which has an important place in the world, is located within
the top 10 worldwide. In 2009, production reached 54 million tons. That values given above
in Table 6.2.1. Production is 46.4 million tons in the first 9 months of 2010. [11]
Manufacturing sector in accordance with the norms of the european union. The
Turkish cement sector, the most important financial problem is a continuous increase in input
costs, according to the energy sector at a disadvantage in the world.[12]
Since production capacity of Turkey has been increased day by day, in the production
of cement Turkey has been the first country in Europe and fourth country in the world
today.Turkey has become the largest exporter in Europe with an increase in exports. [13]

Turkish cement industry, have 9% growth cement production of the firs ten months in
2010. Approximately 26% of cement produced went to export. During this period, internal
sales growth of 13%, while there has been contraction of export 1%. [14]

Industry's export and import assessment:

Turkey with the help of the benefits of geographical location, cement and clinker
exports holds first place in Europe since 2001. Due to size and then deliver the exchange 's
exports to the Turkish cement industry, where industries are among the most important. Since
1999, total exports of the sector in general has shown an increasing trend.
In recent years, the Middle East countries has become an important market for Turkey
exports. This demand is expected to continue in the coming years. [11]

Amount of cement exports for 2010, first 10 years given in the Figure 6.2.1.

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 Million dolar

September
February

October
January

August
March

April

June
May

July
Figure 6.2.1 Exports of cement in 2010 (TUIK data)
Turkey has been exporting 55 countries in 2008. In 2009, the number of countries
increased to 70. Cement exports the majority of Asian countries. In 2009,cement export rates
were 51.15 % to Asian countries, 27.76 % of African countries, 20.31 %of the European
countries and 0.79 % of the American countries. Amounts of export of cement according to
the countries given in Table 6.2.2. The rate of imports in the sector is almost negligible. [11]
Table 6.2.2 Turkey export of cement

Turkey export of cement (tons) 2009

Iraq 3,415.182 24%
Syria 2,073.096 15%
Italy 1,339.964 10%
Libya 1,030.694 7%
Egypt 901.143 6%
Nigeria 650.845 5%
Russia 615.298 4%
Israel 489.206 3%
Azerbeijan 354.161 3%
Bulgaria 333.355 2%
Spain 302.810 2%
Sudan 254.121 2%
France 251.341 2%
Angola 226.055 2%
Other 1,790.267 13%

TOTAL 14,027.538 100%

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