Plastics - Commodity Report

At the end of 2007, HMW-HDPE (high molecular weight high density polyethylene) was in high demand, and that momentum has continued into 2008. The same can be said for many grades of plastics, as consumers ran down inventories in anticipation of the New Year.

"It’s been a real good grade," a reprocessor based in the Southeast says of HMW-HDPE. She says some consumers are trying to drive down the price for the material, but she’s not sure how successful they are going to be.

HDPE fractional melt has held steady, she says, despite problems in the domestic housing sector.

The health of the domestic auto industry is cause for concern among some reprocessors. Detroit-based Plastech Engineered Products Inc., a supplier of plastic trim to General Motors, Ford and Chrysler, has announced the closure of its Winnsboro, S.C., plant. Moody’s Investors Service downgraded Plastech in light of its diminishing customer demand, raw material cost pressures and the need for operational efficiencies, according to Forbes.