Dow notes pick-up in downstream silicone volumes

Midland, Michigan – Dow Inc. saw an improvement in demand for ‘downstream silicones’ in the final quarter of 2024, according to the company’s newly appointed chief operating officer Karen Carter.

“Volume was up 5%, with strong gains across both architectural coatings and downstream silicones,” said Carter in a 30 Jan earnings call.

Overall, Dow's 'performance materials & coatings' segment, which includes silicones and siloxanes, reported a 4% year-on-year increase in sales to $1.9 billion (€1.8 billion).

Operational earnings (EBIT) increased $52 million versus the prior-year period, driven by volume gains as well as lower fixed costs, the US group noted.

The 'consumer solutions' business increased net sales versus the year-ago period, with volume gains across all downstream end markets, led by infrastructure, home care, and electronics, as well as in upstream siloxanes.

Dow's 'coatings & performance monomers' business reported an increase in net sales, driven by “higher merchant monomers volumes” in the US & Canada, partly offset by lower volumes in EMEAI.

Commenting on the operating rates within the segment, chair and CEO James Fitterling said utilisation in the Americas “continue to be relatively strong,” at around “high 80s, low 90s percent.”

The ethylene chain, he added, is stronger than the propylene chain, with housing and automotive industries driving “a lot in the propylene chain.”

“And downstream silicones obviously [are] doing better than siloxane,” he added noting that utilisation rates for siloxane production were “a drag”, mainly due to “capacity adds in China.”

Further elaborating on the subject, Carter said downstream demand “continues to grow for us quite significantly.”

“We are seeing really good downstream growth in markets like electronics, but also in home and personal care,” she said.

On the upstream side, however, Carter said the industry saw “pretty significant capacity additions,” primarily in China in the 2022-2023 timeframe.

“That has slowed significantly, but we're continuing to see an overcapacity situation there,” she explained.

“Over time, though, with the higher than GDP growth in those end-market segments, we do expect it to come into balance,” said Carter, adding that Dow was “staying squarely focused” on growing downstream applications in silicones.