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"]
In Costa Rica, of the total number of exporters whose majority of shipments are in the metal-mechanics, electrical and electronics or plastics sectors, 25% meet a profile of potential participation in global value chains.
An analysis prepared by the Foreign Trade Promotion Agency of Costa Rica (Procomer) explains that "... the 3 sectors agree in selling their products to at least 6 main GVCs: construction (25% of companies), agriculture (23%) trade (20%), food (11%), electronic components and telecommunications (10%) and medical industry (9%)."
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"]
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"]
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"]
Basf de Costa Rica S.A., Sun Chemical S.A. and Ultra-Chem de Centroamérica S.A., are part of the companies participating in the nylon import business in Central America.
The market study "Nylon market study in Central America", prepared by the Trade Intelligence Unit of CentralAmericaData, details the main figures of the nylon import business.
In order to address the emergency declared by Tropical Storm Amanda, Salvadoran authorities authorized the reactivation of the operations of companies dedicated to the manufacture and distribution of plastic products.
The plastics industry was prohibited from operating, because with the outbreak of covid-19 the government of El Salvador decreed a strict home quarantine and decided to suspend the activities of these companies.
In Central America, it is expected that the impact of the covid-19 crisis on the plastic product manufacturing business will be partly explained by the expected drop in sales of bottles and household products.
The "Information System for the Impact Analysis of covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the degree of impact that the crisis will have on companies according to their sector or economic activity, during the coming months.
From January to September 2019, Central American countries imported $290 million in plastic pipe and fittings, with Costa Rica and El Salvador being the markets where purchases increased.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]