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.
In Guatemala, the government announced that in the next two years it plans to build a plastic waste recycling plant that would produce electricity, and the investment would be financed by donations.
The Ministry of Economy (Mineco) is focused on identifying within the metropolitan area which is the most suitable area for the installation of the plant and the plan is that it will start operating within two years.
Companies in the disposable plastic manufacturing sector have the capacity to replace all their production with environmentally friendly options, but the main obstacle is the limited capacity that customers must pay the surcharge for bioplastics.
In Costa Rica, some 31 companies indicated that they have the capacity to replace all their production with user-friendly options, the main limitations being the low capacity of customers to pay the surcharge for bioplastics and the restrictions on the functionality of the alternatives.
The Legislative Assembly approved in the first debate the bill prohibiting the commercialization of plastic straws throughout the national territory, as well as the purchase of single-use plastic in all state institutions.
In addition, the marketing and free delivery of plastic bags to the final consumer in supermarkets and commercial establishments whose purpose is to carry the goods to their destination is prohibited, explains an official statement.
The Guatemalan union of recycling companies estimates that the recycling industry could stop generating about $240 million per year if the agreement prohibiting the use and distribution of single-use plastic goods enters into force.
Changes in legislation restricting the use of disposable plastic containers and packaging force companies to look for other options, some of which could be up to five times more expensive.
In El Salvador, the industrialists' guild asked the Legislative Assembly to be taken into account in the discussion on the prohibition of plastic in the country, since they believe it is convenient to regulate its use, but not to restrict it.
After in October 2018, a bill was presented to the Legislative Assembly (still under discussion) that establishes a one-year deadline for companies to replace the use of plastic bags by articles of other materials, directors of the Salvadoran Association of Industrialists (ASI), ask to be taken into account in the process.
Last year, the region bought $3.874 million worth of plastic and manufactured goods from abroad, 6% more than in 2016, and 35% of imports came from the United States.
Figures from the information system on theMarket for Plastic and its Manufactures in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
In the first nine months of 2017, countries in the region imported $2.861 billion worth of plastics and its manufactures, 4% more than what was purchased in the same period in 2016.
Figures from the information system on the Central American Market for Plastics and its Manufactures, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
The plastic industry in the new geopolitical and economic environment is the theme of the free conference to be held on September 29th for Costa Rican entrepreneurs.
The organizers of the international exhibition PlastImagen, which will be held from November 7 to 10 in Mexico City, are inviting businesspeople from Costa Rica to attend the conference entiled "The plastic industry in a new geopolitical and geo-economic environment."
Resin-producing plants in Houston have declared themselves in a state of emergency due to the impact of Hurricane Harvey and have suspended several orders from Central American plastic manufacturers.
The Central American plastic industry predicts that this temporary situation will generate losses in production this year, affecting exports. Business leaders stated that the increase in the international price of the resin is another element that will affect the sector's overall performance.
While businesses and organizations try to reduce consumption of products such as plastic straws, bags or food packaging, the plastic industry is warning about the economic, health and environmental risks of these measures.
Measures to discourage the consumption of plastic products such as straws and bags pose significant challenges to companies that implement them, such as increasing costs when replacing plastic products with other reusable or recyclable products.
In 2016 the value of imported plastic and its manufactures in the region amounted to $3.668 million, equivalent to 1.7 million tons, 9% more than the volume purchased in 2015.
Figures from the information system on the Central American Market for Plastics and its Manufactures, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]
Industry estimates suggest that 50% of local demand for flexible plastic products is supplied by domestic companies.
The same companies that make up the plastics industry locally characterize it as an "emerging" industry, with growth potential in a context of increasing competition, both locally and with imported products.