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Dow expects Q4 earnings decrease

December 02/2021

MOSCOW (MRC) -- Dow expects Q4 earnings before interest, tax, depreciation and amortisation (EBITDA) to be about USD150-200m lower than market consensus, said the company.

The reason: higher raw material costs and lower polyethylene (PE) and co-product pricing. However, the company is seeing continued economic and supply recovery in Q4, it said. It noted robust end-market demand strength across industrial and consumer markets, as well as improving supply positions following weather-related outages, turnarounds and start-up of new PE capacity in the US Gulf Coast region. Nevertheless, logistics challenges continue to constrain demand, it said.

As per MRC, Dow Chemical, one of the largest US petrochemical companies, has begun bringing operations back online "as third-party utility balances and raw materials availability allow. Dow said its Taft operations were "making progress" toward restarting, and the company expected to have a clearer timeline for resumption of production in the coming days based on repairs and as access to power and raw materials allow.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

Dow Chemical is an American diversified chemical company headquartered in Midland, Michigan. It is a major manufacturer of polymer products, including polystyrene, polyurethane, polyethylene, polypropylene and synthetic rubbers. The company produces more than five thousand products at 188 production facilities in 37 countries.
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, Dow, Russia, USA.
Category:General News
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