Dow avoids naphtha cracking in 3Q
Dow cracked no naphtha during the third quarter, relying instead on LPG feedstock in Europe, the company said on today's earnings call.
On the US Gulf coast, Dow used its expanded capacity for butane cracking to add more butane to the feedslate, chief executive Jim Fitterling said.
"We successfully achieved zero naphtha cracking this quarter, expanding our flexibility and avoiding an otherwise costly feedstock penalty," he said.
Propane prices in Northwest Europe average a $167/t discount relative to naphtha during the third quarter. In the US, models showed a more favorable margin on butane cracking relative to ethane during the same period.
Dow noted margin expansions in its packaging division, bolstered by greater demand and capacity expansions on the US Gulf coast that more than offset a $100mn loss because of downtime and repairs at a fire-stricken plant in Argentina. Those crackers are now back up and running, Fitterling said. The segment saw sales fall $1.1bn to $5bn versus year-ago levels amid a 4pc decline in volume, but margins rose to 15.8pc in the third quarter versus 13.9pc last year.
In September an Alberta judge ordered Nova Chemicals to pay Dow C$1.43bn for violations of earlier contractual commitments on ethane and ethylene allocation and production from a jointly-owned asset.
source: Argus Media
Top News
Six last month
MinRes halts Bald Hill mine amid lithium price rout
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Swapping aluminum for copper will maintain China’s resources, group says
Gold loses some luster after Trump’s decisive win
Hedge funds slash bullish wagers on gold over Trump election win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Families gather at South African mine shaft where hundreds are feared stuck underground
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
