Virgin HDPE Granules can be used for most anything. What is HDPE you ask? Well HDPE (short for High Density Polyethylene) is a commonly used plastic which can be recycled. "HDPE Scrap" is the collected material which is then sold to be recycled.
Here is some formal information about it as mentioned on hdpescrap.com.
High Density Poly Ethylene is a form of recyclable plastic commonly used in consumer product manufacturing. The definition of High Density is anything between 0.941 - 0.965 gram/cc Polyethylene. LDPE has higher temperature resistance, higher stiffness. HDPE provides a good water barrier but it does not hold oxygen or CO2 well.
In HDPE Film form it is used for snack food packaging and cereal box liners. In blow molded HDPE form it is used for non carbonated drink bottles. In injection molded form, it is mostly used for margarine tubs, deli food and whipped toppings. High Density Polyethylene is also used as detergent bottles, milk jugs, garbage containers, water pipes (plumbing) as well as packaging for industrial chemicals such as detergents, bleach and acids.
General uses of HDPE include bread trays, films for grocery sacks, bottles for beverages and household chemicals and injection-molded beverage cases.
In essence Scrap HDPE is recyclable waste consisting of only High Density Polyethylene. It comes all sorts of shapes, forms and colors. The better it is sorted and cleaned, the more it is worth on the recycle market.
So there you have it. Just about everything you would want to know about HDPE.