CargoFax Trade Insights
Dominican Republic Exports to the US: Key Products and Trends Q3 2024
October 20, 2024
October 20, 2024
5-7 min read
At CargoFax, we deliver comprehensive insights into United States imports, focusing today on the Dominican Republic's exports to the US.
Over the past decade, the US has accounted for approximately 55-60% of all Dominican exports, showing consistent growth year after year.
Our platform specializes in providing easy access to granular bill of lading data, which offers detailed information on commodities, importers, and exporters. This resource is essential for businesses aiming to navigate the dynamic trade environment, identify new suppliers, monitor competition, and capitalize on emerging opportunities through detailed trade research.
In this publication, we will highlight the most prominent export sectors of the Dominican Republic and those that have demonstrated significant growth in 2024.
To set the stage before exploring specific sectors, total TEU exports year-to-date (January to September) have declined by 25% compared to the previous year, decreasing from 178K TEUs to approximately 133K TEUs. In contrast, the overall weight of exports reflects a modest growth of 0.4%, totaling around 2.25 billion KG shipped so far in 2024.
One of the most significant sectors is Section IV: Prepared Foodstuffs; Beverages, Spirits, and Vinegar; Tobacco and Manufactured Tobacco Substitutes.
Within this section, Cigars and cigarettes of tobacco (HS-2402) and Cocoa beans (HS-1801) stand out.
The Dominican Republic has long been recognized as a premier cigar producer. While TEUs for cigars have decreased by 20%, the weight of these exports has increased by 5.2%, reaching 88.5 million KG compared to the previous year. This trend is supported by reports from cigar analysts, which indicate that the Dominican Republic exported 149.2 million premium cigars in the first half of the year, reflecting a 15.8% increase over the prior year.
CargoFax data highlights cigars as the largest single export from the Dominican Republic to the US, contributing to 4% of their total export volume.
Cocoa bean exports from the Dominican Republic have experienced a 26% decline in TEUs; however, the weight of these exports has increased by 2%, with approximately 30 million KG shipped to the US year-to-date in 2024. Reports from the Export and Investment Center of the Dominican Republic (ProDominicana) indicate that cocoa exports reached a record value of $359.1 million in 2024.
Several market forces have positioned the Dominican Republic as a leader in cocoa bean exports to the US. Key factors include government investments aimed at empowering local farmers through enhanced export infrastructure, a growing consumer demand for organic cocoa, and challenges in larger cocoa-producing regions, particularly in West Africa, which have prompted buyers to seek alternative sources.
Our data reveals that cocoa exports from West Africa to the US have declined by 51% in 2024 and 47% in 2023, dropping from a peak of 21.5 million KG in 2022 to just 5.4 million KG year-to-date.
As demand for organic cocoa continues to rise in the US, the Dominican Republic is well-positioned to become the leading supplier of organic cocoa beans in the near future, currently ranking third. If you’re interested, remember to subscribe to stay updated on the numbers as they come in for this promising market.
In addition to food products, Section XV: Base Metals and Articles of Base Metal plays a crucial role in the Dominican Republic's exports, particularly the codes for Aluminum bars and rods (HS-7604) and Iron and steel scrap (HS-7204), which together account for 2.5% of the country's total exports.
For aluminum, TEUs have increased by an impressive 33%, with the weight of these exports rising by 28.5%, totaling 36.5 million KG shipped in 2024.
One of the key factors driving this growth is the establishment of new partnerships and joint ventures aimed at enhancing production capabilities. For instance, a joint venture between AA Metals, Inc. and International Dominican Aluminum aims to expand aluminum extrusion capabilities within the Dominican Republic. This partnership is designed to meet growing market demands while improving efficiency and reducing delivery times for customers in the Caribbean and North America, as evidenced by data from CargoFax.
Meanwhile, exports of iron and steel scrap (HS-7204) have also shown positive developments. TEUs for iron and steel scrap have increased by 1.8%, while the weight has grown by 6.4%, reaching 17.8 million KG.
According to reports from Dominican Today, iron product exports in the first seven months of 2024 totaled $137.8 million. Since 2011, the Dominican Republic has been expanding its recycling capabilities, which has been crucial for increasing production levels. As the global market emphasizes sustainable practices, the demand for recycled materials has surged, making iron and steel scrap increasingly valuable.
The Dominican Republic has established itself as a key player in the supply of these base metals, with over 40 countries now importing iron and steel from the Dominican Republic. This growth contributes to economic development and the diversification of its export markets.
While this highlights only two HS codes, there are many more relevant to metals that you can explore on our platform. With our bookmarks, be sure to track and save the most relevant metal markets of interest and stay up to date with daily updates.
Furthermore, several areas within the export market have demonstrated exceptional growth.
Exports of Plastic articles (HS-3923) from the Dominican Republic have surged by 109% year-over-year, growing from 23.6 million KG to 49.5 million KG while Plastic Waste (HS-3915) has increased 217%, growing to 8.5 million KG.
Some of this growth can be attributed to the government partnering with the World Economic Forum to tackle plastic pollution and promote a circular economy, which is expected to further drive demand for Dominican plastic products. This initiative aims to reduce plastic waste while enhancing production efficiency.
Portland cement (HS-2523) and Marble and other types of limestone (HS-2515) have exploded in growth, increasing 14x year over year to around 61.9 million KG year to date. This surge is fueled by a rising number of construction and renovation projects, both domestically and internationally, and driven by substantial investments in infrastructure projects and increased export activity.
Lastly, Gold (HS-7108), traditionally a significant export to Switzerland, has seen exports to the US rise significantly to over 15.6 million KG year-to-date. The increase in gold exports can be attributed to various factors, including rising global gold prices, which have seen an uptick, benefiting Dominican exporters significantly. From January to August 2024, gold and silver exports reached approximately $899.5 million, marking a notable increase of 20.08% compared to the same period in 2023.
In addition, the country's main gold deposit, the Pueblo Viejo mine, continues to play a critical role in the industry. The mine has been operational since 2012 and has undergone significant improvements. Furthermore, in June of this year, Canadian mining company Precipitate Gold announced new discoveries near existing deposits, indicating ongoing investment and expansion in the sector.
This overview only scratches the surface of the Dominican Republic's export landscape. With over 1,100 HS codes to explore, numerous sectors have experienced both growth and decline.
To gain deeper insights into these trends and access detailed, real-time data on producers and buyers of these goods, we invite you to sign up for CargoFax. Our platform offers historical data dating back to 2022, which is crucial for analyzing trade markets and conducting thorough market assessments.
The Dominican Republic export market is brimming with opportunities. Stay informed with CargoFax for the latest daily updates on Dominican exports to the US and Haiti!
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