In Q3 2025, Dow Inc. reported an 8% decrease in revenue compared to the same period last year, reaching a total of $9.97 billion. Net income amounted to $124 million, and operational EBIT dropped by 71%, totalling $180 million. Despite these challenges, the company saw an improvement in cash flows, which increased by $330 million compared to Q3 2024, reaching $1.1 billion.

The Packaging & Specialty Plastics segment generated net sales of $4.9 billion in Q3 2025, marking an 11% decline compared to the previous year. The primary factor behind this decrease was lower polymer prices in the downstream segment, which fell by 10% year-over-year. The currency impact increased net sales by 1%; however, volume declined by 1% compared to the previous year, mainly due to lower licensing revenues and olefin sales, partially offset by higher PE volumes. On a quarterly basis, net sales also decreased, primarily due to lower polymer and olefin prices.

Capital losses in this segment amounted to $6 million, a decline of $22 million compared to Q3 2024. This drop was attributed to lower integrated margins in joint venture companies in Kuwait and reduced supply availability in Sadara, caused by an unplanned event in July. Assets in Sadara have since been brought back online.

Operational EBIT for this segment totalled $199 million, a decrease of $419 million compared to the same period last year. The most significant impact on the result was lower integrated margins. However, compared to the previous quarter, operational EBIT increased by $128 million, driven by higher integrated margins, higher operating rates, the launch of a new PE plant in Freeport, Texas, and lower fixed costs.

The Packaging & Specialty Plastics segment saw a decline in net sales compared to the same period last year, due to lower polymer prices in the downstream segment and reduced licensing revenues, which were partially offset by higher demand for flexible packaging. On a quarterly basis, net sales remained stable, as higher demand for flexible packaging was balanced by lower prices.

The monthly contract price (MCP) for butadiene has been on a downtrend in Europe since April, and October was no exception. This month, it dropped by €35/t to €800/t FD Northwestern Europe amid challenging market conditions and feeble demand, despite the ongoing maintenance of one of the major producers — INEOS’s steam cracker and integrated 120,000-tpy BD unit in Lavera, France, — which is likely to last until January 2026.

New challenges are looming over the market with local demand expected to shrink further. It has emerged this week that Arlanxeo is going to shut its synthetic rubber facility in Port Jerome, France, due to unprofitability. A final decision will be made after consultation with the local labour council. The plant with the annual capacity of 120,000 t of PBR and 20,000 t of E-SBR was shut in September for a planned turnaround, which was due to last around three weeks. Reminder: the production site previously received BD from ExxonMobil’s unit in Notre-Dame-de-Gravenchon, France, via pipeline, but following the facility’s permanent closure in 2024, Arlanxeo had to switch to purchasing feedstock elsewhere by rail.

Another major SR producer Versalis has been actively buying BD lately after it permanently closed its two crackers in Italy: in Brindisi in March and in Priolo in July this year. Happy Pelican vessel has been fixed to load 3,250 t of BD in Moerdijk, the Netherlands, on 4—7 October for delivery to Italy.

Market and shipping sources confirmed that a trading company has chartered two ships for export from Europe to Asia in October. Navigator Gusto will pick up to 13,000 t of BD in ARA in the middle of this month for delivery to Northeast Asia. Another vessel is Trans Catalonia that will carry a combined cargo of butadiene and benzene to China with an estimated 6,500 t of BD and loading scheduled for 20—25 October. Producers had to slash their offers to allow trade between Europe and Asia amid weak local demand and slowdowns in China and South Korea. This week, a 1,500-tonne batch has changed hands at $700/t CIF ARA. Reminder: there were discussions last week where a price level of $750/t was mentioned, while the average price for September-loaded exports was around $800/t FOB ARA.

Plastics production in Germany fell in Q2 2025. According to Plastics Europe Germany, the German association of plastics producers, production of virgin plastics dropped by 4.3% compared to the previous quarter and was 6.2% lower than in the same period last year. Producer prices declined by 0.6% quarter on quarter, or by 2.4% year on year. Industry sales fell by 2.4% to around €6.3 billion.

Foreign trade in particular came under pressure. Exports of virgin plastics fell by 6.7%, while imports rose to €4.6 billion. The trade surplus decreased but remained positive at €2.1 billion.

The association expects no improvement in the coming months. ’Stagnation has yet to be overcome,’ explained Dr. Christine Bunte, Managing Director of Plastics Europe Germany.

’Germany’s structural deficits as a production location have been growing for years. The federal government has begun to address their causes, such as high energy prices and bureaucratic burdens, but implementation will take some time. However, reforms must be carried out much more consistently. Plastics producers in Germany will have to be patient.’

In view of the weak quarterly results, the industry’s attention will turn to Dusseldorf in October. At K 2025, the world’s leading trade fair for the plastics industry, the focus will be on the circular economy and competitiveness.

’The innovative spirit of companies remains unchanged. Despite all the economic challenges, we are seeing the launch of new initiatives — whether in shifting the material base, reducing the CO₂ footprint of products, or developing AI-supported formulations. K 2025 will show how the industry compares internationally and how it can regain momentum,’ said Bunte.