Plastics, Resins & HDPE: July 2019
- Producer prices for HDPE pipe were up .2% M/M (-1.2% last month), but were down 1.2% Y/Y (up 1.2% Y/Y last month). Plastic pipe fittings and unions were down 0.1% M/M (up 2.1% last month) and up 5.7% Y/Y (up 6.7% last month).
- The HDPE industry is still expected to grow at a 3.8% CAGR from 2019-2024 according to Lucintel.
Key factors that could affect supply or price:
The June $.02/lb increase from PVC resin producers appears to have been implemented, which normally would translate into a 7-8% increase in pipe prices. However, pricing from PVC pipe producers appears to be stagnant.
Demand is weak, which is not what they were expecting, come summer. All are in agreement that weather has been delaying work in many areas. That said, housing starts are also off 6.9% from 2018. Pipe producers projections for the next 30-60 days are a mixed bag, some confident that with better weather demand will pick up, and are announcing price increases. Others are not so confident and think that we may be stuck at the current volume and price levels for a while.