Taiyo Oil further cuts styrene production

Japan's Taiyo Oil has further reduced operating rates at its 370,000 t/yr styrene monomer (SM) plant located in Ube as a precautionary measure against any worsening fallout of the novel coronavirus.

The producer had reduced SM production to 90pc in October to minimise production losses. Operating rates were lowered to 85pc at the end of January. The company no longer has any spot supply available for sale.

This production cut is a precautionary measure for potential disruptions to China's banking procedures and if letters of credits are not opened on time. Taiyo exports SM to China from its Ube plant.

Styrene derivative producers are also slashing production to ease inventory pressures, as the flow of goods faces multiple restrictions now that the Chinese government has limited ground transportation.

By Kate Lee