BASF cuts European PS production to 25% of capacity

LONDON (CNI)--German chemicals group BASF is to reduce its European polystyrene (PS) production to as much as 25% of capacity in the fourth quarter in the face of anticipated weak demand.

BASF said in a statement: "One plant for general purpose polystyrene and one plant for the production of high impact modified polystyrene are planned to be taken out of operation in the coming weeks in Ludwigshafen and Antwerp."

The Ludwigshafen site has a capacity of 320 000 tonne/year and Antwerp has a 220 000 tonne/year capacity.

Other European PS producers are cutting production as a result of weak market conditions. One producer reported that it has reduced capacity by 30-40% and that further plant shutdowns were expected.

An industry source told CNI that although demand is still there the events of 11 September and a certain degree of price erosion had affected the market. He said that PS buyers had been buying "hand to mouth" since a significant amount of de-stocking occurred last year.