Turkish Cement Industry Aims for Growth Strategy in the Syrian Market

Abdulhamit Akçay, Vice Chairman of the Turkish Cement Producers Association, stated in an interview with S&P Global Commodity Insights that Turkish cement producers aim to grow in the Syrian market. He noted that despite the war conditions, Syria has become a significant market for Turkish cement manufacturers over the past decade. Akçay emphasized that opportunities exist, but it will take time for the country to stabilize, and there is substantial potential following the current political developments.

It is estimated that Syria will need approximately 60 million tons of cement over the next decade, translating to an annual supply and demand of about 6 million tons. Akçay highlighted that Turkey will play a key role in transporting this consumption. However, he pointed out that moving this volume overland is challenging and underscored the necessity of maritime transportation. He also mentioned the uncertain and contentious state of ports in Syria and stressed the importance of having operational ports during the reconstruction process.

Recent developments in Syria have stimulated the cement sector on Borsa Istanbul. The stone and soil index, which consists of cement company shares, saw a significant jump this month following the change in administration in Syria. The index reached a record high of 14,861 points this month amid expectations of significant cement demand in Syria in the coming years. After the record level, cement stocks faced profit-taking but rebounded this week after a negative closing last week.

The index found support at the 13,500 level and has currently recovered its losses from last week with an almost 4% rise. The stone and soil index has continued its upward movement since October, with a value increase of around 7% this month. Additionally, the index has risen by 27% since the beginning of the year.