Styrolution has trimmed operating rates at all of its polystyrene plants in Europe in September due to reduced demand, a company source said Wednesday.
The source did not give details on the extent of the run cut or current rates, but the reduction was attributed to lower demand downstream given record high PS and styrene monomer prices in September.
“Converters buy the absolute minimum this month thinking next month could be a better buying opportunity,” said the source. “In particular, the distribution sector is pushing back and order entry is really low.”
Record high raw material prices lifted Northwest European polystyrene contract values in the first week of September by Eur80/mt to Eur1,725/mt FD NWE, according to the Platts assessment on September 4.
The Northwest European styrene monomer contract price for September was fully settled at a record high of Eur1,542/mt ($2,032/mt) FOB ARA, an increase of Eur85/mt from August. The CP marks the highest contract price settlement so far this year.
Styrolution owns a 180,000 mt/year PS plant in Wingles, France, an 80,000 mt/year PS plant in Trelleborg, Sweden, and a 475,000 mt/year PS plant at Antwerp, Belgium.
Source: Platts.com
