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Dow expects PE demand to remain resilient in 2022

March 25, 2022

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Dow expects PE demand to remain resilient in 2022

DOW CEO Jim Fitterling said recently that global polyethylene (PE) demand will remain resilient in 2022, while Dow will increase production capacity and exports.

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“Every 1% GDP growth in the market requires 2-3 world-class PE plants to come online, and our expectation is that this won’t change,” Dow CEO Jim Fitterling said on the company’s fourth-quarter earnings call. We’re seeing strong demand for plastic products across all industries. Most new projects will start in the second quarter to mid-year, so I think the market growth will help mitigate some of the impact. Our expectations for operating rates are higher than the industry’s Expectations for PE are 2-3 percentage points higher.”

The Dow CEO expects North America’s annual PE production capacity to reach 4 million tons, half of which will be used for export markets and half will be use for local markets.

He also pointed out that by 2025, 50% of the global PE capacity increase will be in high-cost regions, 60% of which will be in Northeast Asia.

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