Sept 11 (Reuters) -

Dow CEO Jim Fitterling said on Thursday the

polyethylene market is setting up for positive price action in

September following a dip in the second quarter due to tariff

uncertainties.

"There's no sign that there's a massive inventory build.

There's no sign of anything getting locked up or China falling

out of the market to the point where it backed up exports,"

Fitterling said at the Morgan Stanley Laguna Conference.

In the third quarter, the chemicals maker said it has

observed stable volumes, strong export capabilities and low-cost

positions in the United States.

In July, Dow executives had flagged that the ongoing

tariff and geopolitical uncertainty impacted demand patterns,

particularly in the industrial infrastructure and durable goods

sectors.

The company expects a reduction in interest rates to promote

a recovery in depressed end markets, such as housing and durable

goods, which are highly rate-sensitive and tied to

affordability, Fitterling mentioned.

Regarding its net-zero petrochemical project, Path2Zero

production complex, in Alberta, Canada, Fitterling said an

update will be provided by year-end as the company is adding

additional capacity there.

"That increment of capacity leverages a lot of existing

infrastructure that's at that site. So it is going to compete

with our Texas investment down in the Gulf Coast."

In April, the company said it would delay the planned

construction of the project to conserve cash amid unfavorable

market conditions.

Dow sees a one-to-two year delay in the project's timeline,

which was first announced in 2021, fully financed in 2023, and

scheduled for construction to begin in 2024.