SK Global runs 350000 tpa Styrene Monomer Plant at Ulsan at full throttle

17-Jul-14

South Korea's SK Global Chemical is running its 350,000 mt/year styrene monomer plant at Ulsan at full capacity in July, similar to June and May, but is considering run cuts as margins are being squeezed, as per a company source in Platts. The plant, originally owned by German chemical major BASF, was idled in late 2008. It was bought by SK Global in 2009 and restarted late this April. Due to the plant being relatively old and idle for several years, it was less cost-efficient than newer plants, the source said. The source said margins were not good at the moment, although SKGC is completely self-sufficient in terms of feedstocks benzene and ethylene. Several other SM producers in Japan and Southeast Asia have recently cut or considered cutting operating rates due to negative margins caused by relatively high benzene and ethylene prices while SM prices have been relatively stagnant due to a high inventory level in key market China.