Turkey construction materials industry sees mixed production and rising energy costs

The Turkish construction materials industry is experiencing mixed production trends and rising operational costs. According to the July 2026 Monthly Sector Report by Türkiye İMSAD and KPMG, production in 11 out of 20 sub-sectors increased in June 2026, led by construction paints and varnishes at 7.1%. However, significant declines were noted in ceramic sanitary ware (-33.3%) and faucet/valve production (-17%).

The construction sector saw its first negative growth since the third quarter of 2022, contracting by 1.9% in the second quarter of 2026. Despite this, construction expenditures rose by 28.2% year-on-year to 2.96 trillion TL.

In the cement sector, Ender Şahin, President of the ÇCSİB, reported that energy input costs, particularly coal, have reached 40%. Despite inflationary pressures and geopolitical instability affecting supply chains, particularly near the Strait of Hormuz, the sector aims for a 3% export growth target in 2026. Industry leaders emphasized maintaining long-term contracts and reliability over short-term price opportunism.