By September 2021, the plastics sector recovered to reach a value of $343 million, equivalent to 104%, where the main supplier is the United States with 41% of the regional market.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graphic"]
Costa Rica is positioned in the regional market as the largest buyer with $171.6 million, also, the United States remains the main supplier of plastic pipe with $109.2 million.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graphic"]
Due to the closure of a company engaged in the manufacture of packaging and the shortage of raw materials, it is expected that in May and June companies in Nicaragua will face a scenario in which shortages and high prices will predominate.
After the Nicaraguan company Astro Packing Solution announced an indefinite closure of its operations, local companies predict that packaging will become more expensive in the coming weeks and will be forced to look for new suppliers in neighboring countries.
From January to September 2020, imports for plastic and its manufactures totaled $2,681 million, 13% less than what was reported in the same period of 2019, a drop that was reported in the context of the economic and sanitary crisis caused by the Covid-19 outbreak.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graph"]
In Nicaragua, Astro Packing Solution, a company involved in the manufacture of packaging and plastic products, notified its clients that it will close indefinitely due to a shortage of raw materials.
CentralAmericaData anticipated this scenario in mid-February. According to a publication dated February 15, due to the shortage of raw materials and the bottlenecks in the production of the inputs demanded by the plastics industry, businessmen in the region predicted that in the coming months the prices of the products manufactured by the sector would increase.
Due to shortages in raw materials and bottlenecks in the production of inputs demanded by the sector, businessmen in El Salvador expect that in the coming weeks the prices of plastic products will reflect increases.
Following the reactivation of China's economy in mid-2020, the Asian giant has monopolized a good part of the raw materials demanded by industry, a situation that is pushing up costs and generating uncertainty among Central American businessmen.
Due to the pandemic generated by the covid-19 outbreak, production in China was considerably interrupted during the first semester of 2020.
From January to June 2020, Central American countries imported $169 million in plastic pipe and accessories, and purchases from German companies increased by 64%, when compared to the same period in 2019.
Figures from the Trade Intelligence Area of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Vacuum packaging, films for use in agricultural production and resin for mass consumption were some of the products that increased their sales in the Guatemalan market during the pandemic.
As a result of the pandemic that generated the spread of covid-19, during 2020 there were changes in consumption patterns, a phenomenon that forced the plastics industry to adapt to the new reality.
From January to March of this year, Central American countries imported $96 million in plastic pipe and accessories, and purchases from U.S. companies increased by 3%, when compared to the same period in 2019.
Figures from the Trade Intelligence Area of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Although the sector keeps its operations alive thanks to the packaging they produce for the food and cleaning industry, there is uncertainty among entrepreneurs as the demand for bags, brushes, tableware, furniture and other products has contracted.
As a result of the home quarantines that were decreed in the countries of the region in March 2020 due to covid-19, the outlook for the plastics industry fluctuates between optimism and uncertainty in market behavior.
From January to April 2020, Central American companies imported $151 million in plastic and its manufactures from Mexico, and 60% of the total was purchased by companies in Guatemala and El Salvador.
Figures from Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
From January to April 2020, Central American companies imported $11 million in plastic pipe and fittings from Mexico, and 69% of the total was purchased by companies in Guatemala and Costa Rica.
Figures from Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]