Idemitsu reduces run rate by 20% at Malaysian HIPS plant on weak demand

14-Jul-14

Japanese Idemitsu Kosan's wholly-owned subsidiary Petrochemicals (Malaysia) has lowered the operating rate at its 110,000 tpa high impact polystyrene (HIPS) plant at Pasir Gudang this month to 80%. Operating rates were at 100% in June, as per a source as reported by Platts. The reason for the lowered run rate is slowing demand due to rising HIPS prices -- caused by increasing styrene monomer prices -- and the Muslim fasting month of Ramadan. Run rates are likely to be gradually lowered to 70% if demand remains low. Idemitsu also has a 240,000 tpa styrene monomer plant at Pasir Gudang, run by its subsidiary Idemitsu SM (Malaysia), which is expected to shut in mid-August for a one-month turnaround. Meanwhile, Petrochemicals (Malaysia) plans to shut its HIPS plant in January next year for a one-month turnaround.