The turnaround is expected to last 30 days, the source added.
The company typically shuts its PS plants for maintenance once every three years, The Singapore plant was last shut on March 6 for a 23 day turnaround, Platts records show.
Meanwhile, Denka is maintaining a run rate of 80% at the Singapore plant, despite falling production margins, in order to fulfill contractual obligations.
PS producers typically need a spread of $100/mt with main feedstock styrene monomer to break even. On September 22, GPPS and SM were assessed at $1,242.50/mt and $1,183/mt CFR China respectively -- resulting in a spread of only $59.50/mt -- as restocking of GPPS shifted into lower gear ahead of the Mid-Autumn Festival holiday in China over September 22-24.
Just over a month ago, on August 18, the GPPS-SM spread stood at $144/mt.
As a result of current weak margins, Denka is deferring its spot offers for H1 October-delivery GPPS cargoes to October 4.
China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html
