Dow Argentina transferring excess ethylene to European arm.

31-Aug-16

Dow Argentina is moving an ethylene cargo to its European arm and not offering it on a tender as previously expected, as per sources in Platts. "We will be moving it internally to our operations in Europe," the source said. The cargo was previously thought by olefin trader sources to be up for sale.

Dow typically follows restrictions imposed by the authorities that manage the country's energy during the colder months. Petrochemical producers in Argentina typically see feedstock supply curtailments during the winter months, when heating and other residential use tends to be at its highest. Argentina is coming out of its winter season.
"We've had good availability of feedstock and our crackers are running at capacity with no limitations," the source said.

Dow Argentina operates two ethane-fed steam crackers at its Bahia Blanca petrochemical complex, which has an ethylene production capacity estimated at 765,000 mt/year, according to S&P Global Platts data. Dow uses the bulk of its ethylene for the production of downstream derivatives, including polyethylene, but does enter the spot export market when it has a surplus, per market feedback. "Winter is over, and we hope to have more material but not a surplus," the source said, adding that they want to utilize the feedstock for internal downstream consumption in Argentina.