Plastics

Plastics are moldable, chemically fabricated materials produced mostly from fossil fuels, such as oil, coal, or natural gas. The word plastic is derived from the Greek plastikos, meaning to mold, and the Latin plasticus, meaning capable of molding. The first commercially successful thermosetting synthetic resin was created by Leo Baekeland in 1909, and over 50 families of plastics have been produced since then.

All plastics can be divided into either thermoplastics or thermosetting plastics. The difference between the two is the way in which they respond to heat. Thermoplastics can be repeatedly softened by heat and hardened by cooling. Thermosetting plastics harden permanently after being heated once.

Prices – Plastics prices in 2003 rebounded sharply higher along with the US economy after the weak prices seen in 2001 and 2002 during the US economic slump. Specifically, the average producer price index of plastic resins and materials in the US in 2003 (through Oct) rose +12.2% to 146.7 from the 4-year low of 130.7 posted in 2002. The average producer price index of thermoplastic resins in the US in 2003 (through October) rose +14.0% to 147.2 from the 4-year low of 129.1 posted in 2002. The average producer price index of styrene plastic materials (also a thermoplastic) in the US in 2003 (through October) rose +23.9% to 118.3 from the 23-year low of 95.5 posted in 2002. The average producer price index of thermosetting resins in the US in 2003 (through October) rose +5.3% to 154.3 from the 3-year low of 146.5 posted in 2002.

Supply – Total US plastics production in 2002 rose +6.2% to a record high of 108.262 billion pounds, despite weak US economic demand during 2001-2002. The 2002 production level was more than twice that seen as recently as 1986, which shows that plastics continue to represent a growth industry.

By sector, the thermoplastics sector is by far the largest, with 2002 production of 86.762 billion pounds up +6.2% from 2001 and accounting for 80% of total US plastic production. The thermosetting plastic sector (polyester unsaturated, phenolic, and epoxy) production in 2002 rose +5.1% to 7.893 billion pounds and accounted for 7% of total US plastics production. The category of “other plastics” rose +12.6% to 13.607 billion pounds and accounted for 13% of total US plastics production.

Demand – The breakdown by market for the usage of plastic resins shows that the largest single consumption category is packaging with 23.616 billion pounds of usage in 2002, accounting for 28.7% of total US consumption. After packaging, the largest categories are building and construction (16.8% of US consumption), and commercial and industrial (14.4%).

Trade – US exports of plastics in 2002 totaled 9.820 billion pounds, up 8.1% from 9.084 billion pounds in 2001. US exports accounted for 11.9% of US supply disappearance in 2002.