Dow expects demand to exceed TDI production

MIDLAND, Mich. (May 13)—Dow Chemical Co. said its global toluene diisocyanate production will not keep pace with demand in 2002, because of low inventory positions in the industry and a maintenance shutdown at its Freeport, Texas, plant. "Current tight supply conditions are expected to continue through the second half of 2002 on a global basis, particularly with the steady global increase in demand that we are seeing with economic recovery," David Fischer, vice president of Dow Polyurethanes, said in a May 13 statement. Dow will not be able to assess the full scale of the supply shortfall until the plant maintenance work is complete, according to Marco Levi, global business director for Dow's Polyurethanes Flexibles business. "We are closely monitoring this situation, especially in light of the tighter TDI supply that we anticipate in the second half of 2002," Levi said in the Dow statement.