Dow Chemical's Stock Plummets 1.36% on Sharply Reduced Volume Slides to 424th in Market Liquidity Ranking

On September 22, 2025, The Dow Chemical Company (DOW) closed with a 1.36% decline, trading on a volume of $260 million, which marked a 42.8% drop compared to the previous day's activity. This level of volume ranked DOW 424th in overall market liquidity, signaling reduced investor engagement ahead of key earnings announcements in October.

Recent developments highlight potential supply chain adjustments within the industrial chemicals sector. Reports indicate that DOW is accelerating its shift to renewable feedstock sources, with a $1.2 billion investment in bio-based polyethylene production expected to impact 2026 EBITDA margins. Analysts note this strategic pivot aligns with regulatory pressures in the EU and U.S., though short-term costs could weigh on near-term profitability.

Market participants are closely monitoring DOW's response to fluctuating ethylene prices, which have declined 8% quarter-to-date amid softer Asian demand. While the company has secured long-term supply contracts with two major U.S. refineries, these agreements lock in fixed pricing that may limit upside potential if feedstock costs rebound sharply in Q4. The mixed signals have led to a 12% widening of credit default swap spreads for DOW since mid-September.

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