Episode 1322: Europe PO, SM, look to further shutdowns while closures increase market fragility

European propylene oxide (PO) and styrene monomer (SM) will remain oversupplied following the closure of LyondellBasell and Covestro’s flagship complex in the Netherlands, but the erosion of local capacity is leaving markets increasingly fragile.  In this podcast, ICIS Insight editor Tom Brown speaks to Nicole Simpson, ICIS markets editor for PO, and Fergus Jensen, senior editor for styrene, about the likely fallout from the planned shutdown.Europe PO market chronically oversupplied, operating rates remain lowFurther shutdowns needed for PO market to come back into balanceLyondellBasell may be able to meet demand from Europe, US plantsStyrene market also looks to more shutdowns, but closure further reduces Europe capacityDomestic market increasingly dependent on imports, making the market increasingly fragileShipping delays and plant outages having a more dramatic impactStill over 700,000 tonnes excess capacity in Europe PO marketPO remains difficult to transport, infrastructure limited to allow imports to EuropePlayers starting to invest in import facilities, but remain in early stagesPOSM capacity continues to exceed demand, but PO a more of a driver than styreneThree other POSM units remain in Europe