Wedoany.com Report-Oct. 27, Dow reported an 11% year-on-year decrease in revenue from its packaging and specialty plastics segment for the third quarter, mainly due to lower prices for finished plastic products. The segment’s underperformance contributed to an overall 8.3% decline in group sales. The company projected fourth-quarter net sales of approximately $9.4 billion, below analyst expectations of about $10.2 billion.

Dow Inc. (formerly known as the Dow Chemical Company) is a leading American manufacturer of chemicals and plastics, recognised as one of the world’s foremost suppliers of chemicals, plastics, and sealants.

Despite weaker pricing, Dow noted sequential improvements in volumes across parts of its industrial chain. The ramp-up of new polyethylene and alkoxylation capacity along the US Gulf Coast supported margins in major end markets. The company’s quarterly loss per share narrowed to $0.19 from $0.42 in the previous quarter, surpassing the forecasted $0.30 loss. Shares rose as much as 7.6% in premarket trading in New York.

The packaging and specialty plastics division, which focuses on polyethylene resins used in films, flexible packaging, and consumer goods, reported net sales of about $4.89 billion — an 11% year-on-year drop but slightly higher than the previous quarter. Dow attributed the decrease primarily to weaker downstream polymer prices and lower licensing income, although polyethylene volumes improved from the prior period.

Global polyethylene prices remained mostly stable to lower through late Q3. Prices in North America and Northeast Asia both fell compared to the previous month, while Europe saw little change. September 2025 data indicated polyethylene prices of around $1.23/kg in North America, down 3.1% month on month, and $1.30/kg in Northeast Asia, down 2.3%. The relatively flat global trend restricted revenue growth even where sales volumes increased, tightening profit margins along the plastic packaging supply chain.

Market analysts noted that global oversupply and rising competition from new capacity continue to weigh on polyethylene pricing. Although demand has shown some signs of stability, these structural pressures are expected to persist through the second half of 2025.

Dow’s fourth-quarter guidance indicates ongoing price weakness, though the company expects improved utilisation and product mix supported by its Gulf Coast expansions. Management has combined these capacity additions with strict cost-control measures and a cash-generation programme, signaling a prudent approach toward industry conditions and packaging demand heading into 2026.

For downstream users such as packaging converters and buyers, the current mix of stable-to-soft polyethylene prices and stronger supply offers favorable conditions for price negotiations in both contract and spot markets. Meanwhile, producers remain focused on maintaining operational discipline and optimising portfolios to safeguard profitability.

As the year draws to a close, tracking polymer price movements, export trends, and regional arbitrage opportunities will be critical for market participants seeking to balance procurement costs and inventory planning in an evolving global plastics market.