PAGDER’S 2019 PLASTIC SECTOR EXPECTATIONS
Plastics sector production was 9.5 million tons in 2018 and a turnover of 36.5 billion dollars was achieved. Plastic Manufacturers Association (PAGDER),by evaluating 2018, announced the expectations from 2019. According to the statement, a narrowing of around 6 percent was recorded in the remaining year, while it was stated in 2019 that approximately 7 billion dollars of exports were targeted.
Plastic exports in 2018, the most important consolation and exports in 2019, double-digit increases in exports will continue in the Plastic Industrialists’ Association (PAGDER) President Selçuk Gülsün said, raw materials, finished goods and machinery on the side of the high export increases.
Selçuk Gülsün said; “Overseas market continues to contribute positively to sector sales. In the end of 2018, we expect a 25 percent increase in plastic raw materials, about 10 percent in plastic raw materials and 30 percent in plastic processing machines. When we consider the export of plastic raw materials, products and machinery, we see that the total sector exports have increased by 13.5 percent to 6.2 billion dollars. When we include plastic processing machinery in raw material and finish goods exports in 2019, we think that the sector will catch close to $7 billion.”
Exports of the Sector in 2019 Will Continue to Double Digit Growth
Selcuk Gülsün stated that they expect a year to export in 2019;
“The most important strength of the plastics industry in 2019 will be the increase in export revenues. We expect that the high acceleration in sector exports will continue in 2019 and the increase in our market share will continue.”
Contraction in Production in 2018
It is estimated that the plastic products will reach a turnover of 36.5 billion dollars in 2018 with a contraction of 6% on quantity basis and approximately 9.5 million production and a 5% decrease in value. PAGDER President Selçuk Gülsün stated that the slowdown in economic activity in many sectors, where the plastics industry such as automotive, white goods, construction, electrical-electronics and furniture was effective,
“In addition to the rising oil prices, the erosion caused by the exchange rate in 2018, the rise in raw material costs, the rise in interest rates, the decline in sales and investments constituted the background of the contraction in the plastic sector.”
Selçuk Gülsün: Access to finance was restricted.
Selçuk Gülsün stated that the enterprises that have a foreign currency debt started to fall in default after the exchange rate shocks, and that the companies which are healthy due to the widening of the sunken loans did not have access to the financing sources; together with the credit channels in the contraction, he said.
Domestic Market Contraction Will Continue in 2019
Number indicating the domestic market of Turkey’s plastics industry in terms of growth in 2019 could be the scene of a similar performance to 2018, which is predicted, Gülsün said:
“It is expected that the contraction in the domestic market will continue in 2019 as well. Uncertainty and high financing costs may cause a slowdown in new investments; In 2019, the demand for domestic investment goods may be slightly higher. The growth in the global economy will be limited due to the protectionist trade policies. expected to remain at 1.8 percent of 2019 growth expectations for the euro area, expectations of US interest rates will continue to rise, will continue to generate negative externalities for the developing countries, such as Turkey capital outflows. The tensions in the near geography show that our steps towards diversification in our export markets will continue. Turkey’s traditional allies to live with for a while may cause disputes also affected the economic cooperation. In 2019, we foresee that the validity of Turkey’s non easy access to financing conditions in international relations, issues such as fluctuations in the exchange rate may continue to remain on our agenda. “