US Americas Styrenics declares force majeure on PS

23 July 2014 19:28 Source:ICIS News

HOUSTON (ICIS)--US polystyrene (PS) producer Americas Styrenics declared force majeure on PS effective on 1 August this week, based on concerns about monomer availability, according to a copy of a customer letter obtained on Wednesday.

In a 22 July customer letter obtained by ICIS, the company said it had to declare force majeure on styrene, “as a result of operability issues at a key supplier’s ethylene plant,” adding that it also would be declaring force majeure on PS “as polymer production may be constrained by monomer availability”.

In a letter regarding the styrene force majeure, the company said its supplier’s ethylene force majeure was declared on 11 July, and its own current ethylene supply was limited because of this.

For now, the PS market is fairly balanced, with buyers saying there has been no real trouble obtaining the resin they need. However, if the force majeure lasts for an extended period of time, it could tighten the market.

Americas Styrenics has approximately 758,000 tonnes/year of PS capacity in the US at five different plants, representing more than one third of PS production in the US.

Location

Capacity in tonnes/year

Gales Ferry, Connecticut

73,000

Ironton, Ohio

85,000

Joliet, Illinois

125,000

Marietta, Ohio

360,000

Torrance, California

115,000

Source: ICIS plants and projects

 

By Michelle Klump