In the last year in El Salvador, sales of hardware stores have remained dynamic, a situation that is explained by changes in living habits resulting from the pandemic, as in recent months’ consumers have decided to invest in remodeling their homes.
The increase in family remittances is another factor that has influenced the increase in hardware store sales.
During 2020, it is estimated that the average price of a ton of steel increased 19%, a rise that impacts the construction industry and is explained by the increase in logistics costs and the suspension of the extraction of the material due to the outbreak of covid-19.
Central American businessmen report that during last year, which was marked by the sanitary and economic crisis, the average price per ton of steel increased by $130, going from $670 to $800.
El Salvador, Guatemala and Nicaragua were the Central American markets that increased their hydraulic cement imports in the first half of 2020 in year-on-year terms.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graphic"]
Hardware store sales in Central America are projected to register a considerable drop, which would be mainly due to the expected decline in retail sales of paints.
The "Information System for the Impact Analysis of covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the impact that the crisis will have on companies according to their sector or economic activity, considering different scenarios for the coming months.
The impact of the covid19 crisis on the construction sector in Central America is expected to be explained, to a greater extent, by the expected fall in the business of prefabricated steel structures.
The Legislative Assembly approved in second debate a bill that aims to tax in the country the sale and self-consumption of imported or locally produced cement.
The initiative, which was approved in the first debate in the Assembly in mid-February and is still pending approval by the Executive Branch, establishes that the tax will be on imported cement produced nationally, in bags or in bulk, for sale or self-consumption, of any kind, whose destination is the consumption and marketing of the product nationally.
During 2020, Holcim announced that it will invest $7.5 million in the construction of six concrete production plants and the purchase of machinery.
The new concrete plants that the company is already building will be in Santa Ana, Acajutla, Apopa, Ilopango, La Paz and La Unión. These will be in addition to the 12 that Holcim already operates in the country.
After Monterrey business group completed the construction of its new industrial plant with capacity to produce 120 thousand tons of cement per year, the company is preparing to start selling in the local market.
In the municipality of Acajutla, the Monterrey business group began construction of an industrial plant with the capacity to produce 120 thousand tons of cement per year.
Executives of the company of Guatemalan origin, reported that the construction of the industrial plant will be done on a 10-block lot that is on the road connecting Acajutla and Sonsonate.
During the first nine months of 2018, Central American companies imported hydraulic cement for $110 million, and purchases from Mexico doubled compared to the same period in 2017.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
During the first six months of 2018, Central American companies imported hydraulic cement for $77 million, and purchases from China increased 42% over the same period in 2017.
Figures from the information system on the the Hydraulic Cement Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Drywall imports in the countries of the region in 2017 exceeded $65 million, and more than 65% of purchases were made by companies in Costa Rica, Panama and Guatemala.
From the report “Drywall Market in Central America” compiled by the Business Intelligence Unit at CentralAmericaData:
During the first half of the year, Central America totaled $177 million in imports of ceramic products, and purchases from Spain rose 11% over the same period in 2017.
Figures from the information system on the Ceramics Market in Central America, compiled by the Trade Intelligence Unit at CentralAmericaData:[GRAFICA caption="Click to interact with graphic"]