ARMATÜR Association/Turhan: Unit Prices in the Fixture Sector Rise, Exports Increase

The valves and plumbing equipment sector completed November with an increase in exports. Exports rose by 5% in November, reaching $347.4 billion. The increase in exports was affected by the rise in the unit price per kilogram, which increased from $6.16 to $6.62. Looking at the first 11 months, however, the sector's exports decreased by 0.55% compared to the previous year, falling to $3.68 billion. Gökhan Turhan, Chairman of the ARMATÜR Association Board, stated that in order for the export increase to continue in December, the situation of the global economic slowdown and the course of regional trade relations are very important. He also noted that high domestic interest rates and low foreign exchange rates make it very difficult for exporters.

Turhan said the following: "The valves and plumbing equipment sector, which closed the previous year with $4 billion in exports, announced the November and January-November export figures for 2024. The sector exported 2.28% less in quantity in November compared to the same month of the previous year; however, due to the increase in the unit price per kilogram from $6.16 to $6.62, it raised its total exports in value terms to $347.4 billion with a 5% increase. Looking at the January-November period, the sector's exports fell by 0.55% to $3.68 billion compared to the same period last year.

Germany was the top export destination in November, with $38.4 million, followed by Iraq with $17.2 million and Russia with $14.6 million. The highest percentage increase in exports in November was recorded at 89% to Uzbekistan. Exports to this country, which also saw a 21.2% increase in the previous month, reached $10 million. Exports to France increased by 24.6% to $13 million, and to Poland by 24.15% to $11 million. In November, exports to Poland rose by 27.59% to $11 million, while exports to Uzbekistan increased by 21.17% to $9.7 million.

In the January-November period, the largest market was Germany with $431.1 million, followed by Russia with $209.3 million and Iraq with $167.7 million in exports.

'WE COULD NOT REACH THE YEARLY EXPORT TARGET' Evaluating the announced figures, Gökhan Turhan highlighted that due to the inflationary environment and currency policies experienced in Turkey in 2024, the cost differences with the countries we compete with have widened. He noted that the exchange rate's parallel movement with inflation is very important for the competitiveness of Turkish industry and the valve sector. Turhan stated, "Furthermore, high inflation increases our companies' need for working capital, but access to finance remains challenging. It is impossible for the industrialist to bear the high interest rates on the financing obtained."

Turhan pointed out that an economic policy capable of meeting industrialists' costs is critical for production and exports and added: "The economic contraction occurring worldwide is certainly an important factor; however, a predictable economic environment is necessary for our industrialists to continue investing, producing, and exporting in our country.

In November, our sector exports showed a 5% increase compared to the same month last year; however, for the increase in exports to continue, especially the situation of the global economic slowdown and the course of regional trade relations play a significant role. Unfortunately, looking at the year, we could not achieve the targeted export increase."