The recession hit Argentina's plastics industry in the first place
The recession hit Argentina's plastics industry in the first place
Due to the lack of foreign exchange reserves and the serious domestic inflation, Argentina faces a default crisis on external debt. The transformation of the plastic industry was once again in trouble because of the changing state. The dependence on imports of raw materials for Argentina's plastics industry will lead to the industry's first shock in the crisis.
Per capita consumption has grown steadily, and the number of new production machines has increased substantially. When people took it for granted to 2014 will become Argentina's plastic industry in transition (previously, the plastic industry for many years in a state of stagnation or decline), a plastic industry "Waterloo" is quietly on the plastic market of Argentina.
Argentina is facing its most severe external default crisis since 2001, due to a lack of foreign exchange reserves and a severe domestic inflation (the current Argentine peso is down 30% from January). Given the current economic situation, the country's market participants said it was difficult to predict the future of Argentina's plastic industry.
"In the foreign trade activity, the Argentine economy always can give us some unexpected 'surprises'. We have been buying up to 70 per cent of the raw materials in overseas markets because of signs of recovery in the plastics industry. Now, however, we are in deep trouble with the unexpected devaluation of the peso." "Said gracielac.garcia, President of the country's large chroma seed production company, JulioGarciaeHijosSA.
Local traders said, though the per capita consumption of plastic industry is growing steadily, and the data has been increased to 2013 44 kg/person, but the figure and the European and north American countries, 100 kilograms per person is still a big gap.
Affected by the economic crisis, there are serious challenges facing all industries in Argentina. Market participants pointed out that the country's plastics industry was the first to be seen in the battle of Waterloo because of excessive reliance on imports for raw materials.
Total plastic consumption in Argentina was 1.8 million metric tons in 2013, down 0.4 percentage points from the previous year, the data showed. However, with the gradual recovery of the plastics industry, Argentina's total plastic output rose by a relative 0.5% in 2013.
