Dow Introduces $400/ton Surcharge on PE Shipments to Asia-Pacific Amid Supply Disruptions

Dow has announced a significant surcharge on polyethylene (PE) shipments to Asia-Pacific, as ongoing geopolitical tensions and supply chain disruptions continue to strain global markets.

In a communication to customers dated April 2, the company confirmed that an additional charge of $400 per ton or higher will be applied to all pending PE orders destined for Asia-Pacific ports. The surcharge takes immediate effect and applies across all polyethylene grades, regardless of their production origin.

The move comes in response to escalating challenges in the region, including manufacturing disruptions, logistical bottlenecks, and rising geopolitical risks linked to the Middle East conflict. These factors have sharply increased the cost of ensuring consistent supply while also tightening the overall supply-demand balance in the global polyethylene market.

Dow indicated that the surcharge is aimed at sustaining reliable deliveries, maintaining product availability, and ensuring greater predictability in supply, especially as demand trends across regions remain uneven.

Customers who do not agree to the revised pricing structure have been asked to cancel their affected orders by April 3. The company also noted that its account teams will engage directly with buyers to manage the implementation and address any concerns related to the surcharge.

The development highlights the growing cost pressures facing polymer markets globally, as supply chain disruptions continue to ripple across production and distribution networks.

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