Dow Chemical cuts polyethylene production

Recently, Dow announced that it will cut its global polyethylene production by 15% due to logistical blockages in the U.S. and Europe that have hampered exports since the end of 2021.

Dow Chemical said: "Given ongoing global logistics constraints, including port and rail congestion on the U.S. Gulf Coast, and dynamic conditions in Europe, we are reducing polyethylene operating rates, resulting in a temporary 15% drop in production. This production reduction will Helps to balance high inventories at key ports and packaging warehouses around the world, especially in August and September on the U.S. Gulf Coast, two months that are typically strong hurricane season."

Exports and prices of polyethylene have fallen sharply in the U.S. and globally in recent months, as have prices for the resin used in more durable plastics in the construction and automotive industries, according to S&P Global. Since the end of May, U.S. high-density polyethylene (HDPE) export prices have fallen 33.3% to $1,036/ton; European HDPE export prices have fallen 23.4% to $1,373/ton; Asian HDPE export prices have fallen 10% ~16%, of which $950/t in the Far East and $1,000/t in Southeast Asia.