Analysts warn of economic slowdown in Mexico

By Stephen Downer
Correspondent

Published: May 31, 2013 1:47 pm ET
Updated: May 31, 2013 1:49 pm ET

Related to this story

Topics Mexico
Companies & Associations

MEXICO CITY — The Mexican plastics industry, which grew 5.3 percent last year, may slow in 2013, analysts believe, after the government acknowledged the national economy, which is largely dependent on exports, is weakening.

In a May 17 news release, the finance ministry admitted it was pessimistic about gross national product growth this year, predicting it will reach only 3.1 percent and not the 3.5 percent the ministry believed was achievable at the beginning of the year.

Commenting on the announcement, Eduardo de la Tijera Coeto, president of Mexico City plastics sector consulting business Grupo Texne, urged the industry to find substitutions for imported resins, which, he said, represent about 40 percent of the national consumption of plastics.

“Imports grew at an average annual rate of 9.7 percent between 2008 and 2012,” he said, “The market captured by imports has reached 2.3 million [metric] tonnes, worth almost $8 billion.”

“The first thing we need to do is to find out who’s importing plastics and what they’re importing,” he wrote in his weekly newsletter Carta al Industrial.

However, De la Tijera sees opportunities for the industry in the government’s national development plan 2013-2018, published in May.

“These proposals open the doors even more for us on several fronts, including one to promote the use of plastics in agriculture and the federal institutionalization of what has helped us to deflect irrational regulations against plastics over the past four years: namely production and sustainable consumption criteria for plastics.”

Mexico’s President Enrique Peña Nieto described the 183-page document as “a plan to move Mexico forward. It’s a guide for making the best ideas and proposals a reality for the benefit of society as a whole.”


Comments

Analysts warn of economic slowdown in Mexico

By Stephen Downer
Correspondent

Published: May 31, 2013 1:47 pm ET
Updated: May 31, 2013 1:49 pm ET

Post Your Comments


Back to story


More stories

Image

Resin prices continue downward slide

March 20, 2015 6:00 am ET

The plastic resin market may not be known for its limbo dancers — but buyers continue to look at prices and sing out: How low will they go?    More

Image

Magna investing $135 million for new exteriors plant in Mexico

March 18, 2015 5:04 pm ET

Magna International Inc has started construction of a $135 million automotive exteriors manufacturing facility in Querétaro, in central Mexico.    More

Image

SPI reports strong machinery sales

March 16, 2015 4:26 pm ET

Shipments of plastics machinery increased for the fifth straight year in 2014 — a strong report issued a week before NPE 2015 kicks off in...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events