Plastics, resins & HDPE report: February 2019
The interruption in global demand from the Chinese New Year was still weighing on HDPE prices in February. There have been no significant supply disruptions but demand uncertainty of late kept prices flat early in February. Spot HDPE saw a high bid price of .59/lb, up from .53/lb. at this time last month. Contract prices are steady at .48/lb. The spot HDPE high in 2018 was .68/lb.
Home construction is expected to accelerate on a regional basis in the front-half of 2019. Forecasts suggest a lukewarm 2% growth rate in new single-family housing starts in 2019 with the primary growth driver being mid-market priced homes (30% of all new starts will be for starter-homes). Reconstruction and remodeling activities in disaster-impacted regions in California and along the East Coast will keep demand very strong in those markets. Some of the fastest demographically-growing markets include Florida, North Carolina, Texas, Georgia, and Washington State.
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