Plastics, resins & HDPE report: March 2019
- Spot HDPE saw a high spot price of .50/lb, up from .53/lb. at this time last month. Contract prices remain steady at .48/lb. The spot HDPE high in 2018 was .68/lb.
- Producer prices for HDPE pipe were down 1.1% M/M, but were up 1.3% Y/Y. Plastic pipe fittings and unions were down .9% M/M and up more sharply by 9.2% Y/Y.
Key factors that could affect supply or price:
- New housing starts hit an annualized rate of 1.230 million in January (latest data available), which is an increase of 18.6% M/M from December, but down -7.8% Y/Y.
- 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 through mid-year.
Some of the fastest demographically-growing markets include Florida, North Carolina, Texas, Georgia, and Washington State.
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