Concrete Sector's 2026 Spring: Financing Constraints and Rate Expectations

Positioned as the reinforcing bar of Turkey's construction industry, the ready-mix concrete sector is making a strategic pivot towards the anticipated interest rate reduction scenario by central banks for 2026, following a year of deepening demand contraction and uncertainty in 2025. Industry representatives suggest that the easing of cash flows with the launch of stalled projects will only be sustainable if the decline in financing costs becomes permanent.

Investment Freeze and the 2026 Vision

Throughout 2025, housing projects were postponed due to lack of demand and high costs, while industry representatives are mapping out a revised roadmap for the coming year. This waiting period continues to exert pressure on inventory management and operational efficiency.

■Projects postponed in 2025 are scheduled to be implemented starting in 2026.

■Demand contraction and the atmosphere of uncertainty forced investors to act cautiously.

■The sector ties signals of revival primarily to macroeconomic stability.

Liquidity Pressure in Capital Markets

The most critical issue on the production side is the deepening difficulty in accessing financing. The credit tightening in the banking system and the high-interest environment continue to negatively impact the capital adequacy and investment budgets of ready-mix concrete producers.

■Producers are experiencing serious structural difficulties in accessing finance.

■High financing costs threaten project profitability and company balance sheets.

■The sector views the easing in monetary policy as critical to overcoming the liquidity crisis.

Construction and real estate loans constitute a significant portion of the banking sector's portfolio. The financing access issue in the ready-mix concrete sector actually signals the contraction in commercial credit volume and risks in asset quality for banks. The expected interest rate cut in 2026 may compress Net Interest Margins (NIM) in the short term, but this loss could be offset by volume growth through the revival in credit demand. The sector's recovery will also positively impact banks' commercial credit risk premiums and non-performing loan ratios.