Dow Cuts Production by 15%! Global Polyethylene Production Capacity Declines!

Under the continuous fermentation of the energy crisis, many companies have to start "preparing for a rainy day", and the pace of price adjustment and production reduction is accelerating.

Recently, it has been reported that Dow is reducing the operating rate of polyethylene assets due to factors such as global logistics constraints, port and subway congestion, and Dow is cutting global polyethylene (PE) production by 15%. The duration is to be determined. . Dow is the world's second largest polyethylene producer with a total production capacity of 9.8 million metric tons per year, and raw materials in the polyethylene industry chain will also be affected.

In recent months, the price of polyethylene in the United States and the world has plummeted, and the prices of domestic LDPE, HDPE and LLDPE have also declined. It can be seen that the prices of LDPE, HDPE and LLDPE have shown a significant downward trend since the beginning of August. Now Dow's production reduction may bring a ray of life to the polyethylene industry chain. In addition, the US Gulf coast may be hit by hurricanes from August to September. , the risk of production shutdown increases, and polyethylene prices are expected to recover in the future.