According to market sources, LyondellBasell and Covestro are set to restart their jointly owned propylene oxide styrene monomer (POSM) plant in Maasvlakte, the Netherlands, in the second half of September. This decision comes in response to an anticipated shortage of PO.
Current PO Market Situation
Currently, two PO plants in Europe are undergoing unplanned maintenance, while two other facilities are scheduled to begin planned turnarounds starting in mid-September. As a result, the supply of PO is expected to be significantly impacted.
Plant Details
The Maasvlakte plant has a production capacity of 680,000 mt/year of styrene and 313,000 mt/year of propylene oxide. These figures are according to Chemical Market Analytics (CMA) by OPIS, a Dow Jones company.
Operational History
The joint venture unit was offline during July and August due to decreased demand resulting from high inflation. Last year, it was also shut down in November and December due to persistent high energy costs and decreased demand. Operations resumed in the first half of this year.
Challenges Faced by the Industry
Styrene production margins in Europe have been under pressure due to high production costs and weak consumer demand. This has led to reduced or minimum production rates among styrene plants in the region.
Impact on Styrene Supply
The restart of the joint venture unit is expected to alleviate the tight supply of styrene in Europe. The region has seen several styrene plants cease operations either due to planned or unplanned outages.
