Dow slashes global polyethylene operating rates by 15% on logistics snags

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Dow Inc. (NYSE:DOW) -2.5% in Wednesday’s trading after saying it temporarily reduced polyethylene operating rates by 15% of global nameplate capacity, Dow Jones reports.

The company cited global logistics constraints, including port and rail congestion in the U.S. Gulf Coast and dynamic conditions in Europe.

Dow (DOW) expects the move will “help balance elevated inventories in warehouses and at key ports around the world and its logistics resiliency, particularly in the [U.S. Gulf Coast] ahead of the most active part of the annual hurricane season in the U.S.”

Aggregate polyethylene operating rates in the U.S. and Canada were in the mid-80s in July, according to preliminary data from the American Chemistry Council.

Dow’s (DOW) underlying cash flow performance increased more than 50% Y/Y during H1 2022, Daniel Thurecht writes in a bullish analysis published on Seeking Alpha.

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