APIC '11: Japan’s Taiyo Oil operates SM plant at 80% on poor margins

26 May 2011 15:55  [Source: ICIS news]

FUKUOKA, Japan (ICIS)--Japanese aromatics and styrene monomer (SM) producer, Taiyo Oil, is running its Ube-based SM plant at 80% due to weak margins, a company source said on Thursday.

The company had operated at current levels at the 370,000 tonnes/year SM plant since April 2011, he added.

SM margins have been under pressure due to high ethylene feedstock costs, the source said, adding that there were no immediate plans to raise SM output.

Operating rates were also being kept low at the company’s upstream benzene unit, he said.

Taiyo Oil has been running its 450,000 tonnes/year benzene unit in Shikoku at 50% of capacity since January this year due to weak margins for hydro-dealkylation (HDA) producers.

This year’s APIC runs from 26-27 May.

By: Mahua Chakravarty
+65 6780 4359

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