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Logistics Constraints Lead Dow to Lower Global Polyethylene Operating Rates
08/24/2022
With ample supply, weak demand, lower prices, and logistics issues weighing on the resin market, one major producer has given notice that it will lower operating rates on its Polyethylene assets.
In a letter to customers, Dow said it will be temporarily lower 15% of its global Polyethylene nameplate capacity, given the continued global logistics constraints, including port and rail congestions in the U.S. Gulf Coast (USGC) and dynamic conditions in Europe.
The company will continue to fulfill orders, while managing production in line with supply chain and logistics constraints, and noted that the duration of these measures will be determined as market dynamics in Europe and pressure on constrained logistics normalize.
Dow added that it expects these actions to help balance elevated inventories in warehouses and at key ports around the world and its logistics resiliency, particularly in the USGC ahead of the most active part of the annual hurricane season.
By The Plastics Exchange.
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