Dow Seeks $265/ton PE Price Increase Across October and November

Dow is pursuing a combined polyethylene (PE) price increase of 12 cents/lb, equivalent to approximately $265/ton, over October and November, citing higher feedstock costs and strengthening global spot markets.

Speaking during the company’s third-quarter earnings call on October 22, CEO Karen Carter outlined a proposed increase of 7 cents/lb for October, followed by an additional 5 cents/lb in November.

Carter highlighted rising costs for crude oil, naphtha and ethane, along with improving market conditions, as key factors behind the planned adjustments. She also reported that US polyethylene inventories fell by more than 400 million pounds in September, while spot prices continued to move higher across global markets.

If the full increases are realised, they could generate approximately $200 million in additional fourth-quarter earnings upside, depending on how feedstock costs evolve. Separately, Dow expects global integrated PE margins to improve by around 2 cents/lb quarter over quarter, excluding the potential full impact of the October and November pricing initiatives.

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