The Dow logo is seen on a building in downtown Midland, Michigan, in this May 14, 2015 file photograph.
Fitterling stated: "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." He emphasized that the market remains supported by balanced supply conditions.
In the third quarter, Dow reported stable volumes, strong export capabilities, and low-cost advantages in the United States. The company noted that these factors are reinforcing competitiveness in global markets. However, Dow executives had previously highlighted in July that tariff and geopolitical uncertainties affected demand, especially in industrial infrastructure and durable goods sectors.
Fitterling added that an expected reduction in interest rates could stimulate recovery in weaker end markets such as housing and durable goods. These sectors are highly sensitive to interest rates and affordability, making them critical to overall demand. The company sees monetary policy adjustments as a potential catalyst for growth in the near term.
On the topic of Dow’s Path2Zero project in Alberta, Canada, Fitterling confirmed that an update will be shared by the end of the year. The project involves a net-zero petrochemical production complex where the company is adding capacity. He noted: "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."
The Path2Zero project was first announced in 2021, fully financed in 2023, and initially scheduled for construction to begin in 2024. However, in April the company announced a delay in construction as part of its cash conservation strategy, citing challenging market conditions. Dow currently expects a one-to-two year delay in the project timeline.
Overall, the company remains focused on strengthening export competitiveness, leveraging low-cost positions, and maintaining flexibility in its investment strategy. Market participants will be watching closely for Dow’s year-end update on its Alberta expansion plans and the impact of possible interest rate cuts on demand recovery in rate-sensitive sectors.
