TURKISH ALUMINIUM INDUSTRYA Brief Overview

Dr. Erol Metin

Secretary General

TALSAD, Turkish Aluminium Industrialists Association

October 10-11, 2019 ISTANBUL

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POPULATION : 82 Million (2018)GDP : USD 10.537 (2017)Exports : USD 168 billionImports : USD 223 billionF.D.I : USD 10,9 billion# of Foreign Capital Companies: 58.418

Major Exports: Germany (9.6%), UK(6.1%), Iraq (5.8%) USA (5.5%), Italy (5.4%)

Major Imports: China (10%), Germany (9.1%), Russia (8.3%) USA (5.1%), Italy (4.8%), France (3.5%)

TALSAD Members

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• Established in 1971, one of the oldest industry organizations in Turkey. • 76 Members / leading companies of the Turkish aluminium industry

Aluminium consumption in Turkey has grown by around 8% in the last decade

Source: MBR The Global Aluminium Industry Outlook to 2025Source: TALSAD, Turkey

-

200.000

400.000

600.000

800.000

1.000.000

1.200.000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Aluminium Consumption of Turkey (ton)

CAGR + % 7,8 CAGR + %4,4

Aluminium per capita consumption is around 12,5 kg, slightly above the world average

2,3

8,4

10

12,6

23,2

28,2

30,8

34,8

44,9

INDIA

BRASIL

WORLD AVG

TURKEY

CHINA

ABD

JAPAN

S.KOREA

GERMANY

Aluminium Consumption per capita kg/year

Source: MBR The Global Aluminium Industry Outlook to 2025Source: TALSAD, Turkey

6,16,5

7,57,8

7,0

9,0

10,711,3

12,5

13,2

11,912,3

13,212,6

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Aluminum Consumptionkg/capita kg/year

Turkish aluminium industry is widespread in the whole value chain.

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1 smelter 19 wrought aluminium producers 21 rollers, plate manufacturers

74 extruders 18 wire and cable manufacturers 10 packaging manufacturers

Turkey Imports By Category-Aluminium Imports represents 1.5% of total imports by category, USD 3.9 Billion (2018)

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Machinery and Engineering products

12%

Turkey Exports By Category-Aluminium Exports represents 1.6% of total exports by category, USD 3.0 Billion (2018)

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Aluminium industry of Turkey is based on value adding manufacturing processes

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-

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

1.800.000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Aluminium imports of Turkey (ton)

Unwrought Extrusion Rolling Products Wire Powder Scrap

Extrusion

Rolled Products

Wire and Cable

Unwrought Al

• Turkey imports 1.6 million tons of aluminium products, 1.1 million tons of which is unwrought aluminium.

Turkey ranks 7th among unwrought Al importing countries

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10,4

6,3 6,2

3,3 3,1 2,8 2,6 2,3 1,7 1,7

-

2,0

4,0

6,0

8,0

10,0

12,0

Unwrought Al imports (USD billion)

Turkey’s aluminium imports reached to USD 3.9 billion

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3.499.929 3.333.532 2.865.840

3.469.055 3.872.389

2014 2015 2016 2017 2018

Aluminium Imports of Turkey ($)

-

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

4.000.000

4.500.000

2014 2015 2016 2017 2018

Supply Sources, (USD)

EU AMERİCA Asia Eurasia Africa Free Russian fed ME

Russian Fed

Turkey ranks 7th in primary (16th in total) aluminium importing countries

EU

Asia

ME

16%

13%

8%

7%7%5%5%

4%4%

31%

Supply source of Aluminium for Turkey

Russian Federation

India

Malaysia

Germany

China

United Arab Emirates

Qatar

Tajikistan

Iran

ROW

ROW

Turkey is a net importer of Aluminium and products

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-

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8

IMPORT & EXPORT TRENDS

Total of exports Total of Imports

Avg Net Imports Last 5 Years: 700.000 Tons

TOTAL IMPORTS OF ALUMINIUM AND AL PRODUCTS

TOTAL EXPORTS of ALUMINIUM PRODUCTS

Tons

Turkey’s export of aluminium products doubled in last 10 years. (2018 total exports 805.000 tons)

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-

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

900.000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Aluminium exports (ton)

Extrusion Rolled Products Raw Scrap Wire cable

Rolled products

Al products

Extrusion products 50000

550000

1050000

1550000

2050000

2550000

3050000

3550000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Alüminyum exports USD

Aluminium industry of Turkey is based on value adding manufacturing processes

Share of Semi Products Consumption in Turkey

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Extrusion Products

39%

Rolled Products35%

Wires17%

Folio8%

Others1%

CONSUMPTION OF SEMIS IN TURKEY

Aluminium product exports continue to increase in 2019

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0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

January February March April May June July

Aluminium exports (tons/month)

January 2018 2019

0,7720,967 0,974

0,618

0,7630,876

2017 2018 2019

ALUM,INIUM PRODUCTS EXPORTS(JANUARY - JULY BILLION $)

AB ROW

1,39

1,731,85

.

EU ve USA constitute 2/3 of Turkey’s aluminiumexports

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15,4%

7,1%5,9% 5,7%

4,5% 4,4% 4,1%3,2% 2,8% 2,8% 2,6%

21,30%

GERMANY USA ENGLAND ITALY FRANCE POLOND IRAQ FREE ZONE

SPAIN EGYPT HOLLAND ROW

Aluminium trade

60%

7%

33%

Share of regions by export (2018, %)

EU USA ROW

Turkey is a worldwide supplier of aluminium products

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• Part of Turkey’s primaryAluminium imports are used for manufacturing of parts and goods supplied to global markets.

• Quality and wide manufacturingcapability of Turkish Aluminium Industry has yielded a wellbalanced world wide network of product based customers and services

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TALSAD DIGITAL PLATFORM

• ONLINE ALUMINIUM INDUSTRY DATA. MOBILE AND WEB BASED APPLICATIONS • LME PRICE UPDATES• TURKISH ALUMINIUM INDUSTRY TRADE DATA, TRADE MAP AND TRENDS – MONTHLY UPDATES• TALSAD INDUSTRY DATA- YEARLY UPDATES

CONCLUSIONS

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• Turkish Aluminium market is characterized by high import dependency, mainly on primary aluminium, and widespread manufacturing base to serve whole world• Turkish aluminium industry is the “manufacturing base” of the region.

• Local aluminium consumption has shown significant and stable growth since 2005. Automotive and construction industries are the main drivers of the aluminium growth in the Turkish market.

• The effect of economic slow down in 2018 yield a decreas in local construction and automotive industries.

• The growth, both in local and export markets has picked up and likely to continue in 2019.

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www.talsad.org.tr

Thank you.