Westlake takes down US styrene plant as ethylene costs rise

(recast paragraph 6 as 259,000 tonnes/year instead of  259,000 tonnes/day.)

HOUSTON (ICIS)–US styrene producer Westlake Chemical confirmed on Wednesday that it has taken its Lake Charles, Louisiana, facility down due to economic conditions within the styrene and ethylene markets.

The company said with ethylene prices strong it has stopped producing styrene and will instead look to bring ethylene back into the market.

US spot ethylene prices have gradually increased since early July, establishing record highs on the back of tight supply availability. Current ethylene spot prices are at 65-69 cents/lb DEL (delivered), up from about 55 cents/lb in early July.

Styrene demand, however, has been poor and prices have come down alongside a recent decline in feedstock benzene prices. Current styrene spot prices are at 71.75-72.00 cents/lb, and were down from prices at about 76 cents/lb in mid-July.

Westlake said that it is fulfilling customer obligations for styrene and it expects the Lake Charles plant to be back online within 30 days, or when ethylene prices come back down.

The Lake Charles plant has a styrene capacity of 259,000 tonnes/year.