Styron Europe has reduced operating rates at its styrene monomer plant at Terneuzen in the Netherlands this month, according to market sources.

The company declined to comment on operational matters, but industry sources said the run cut at the 500,000 mt/year styrene plant was not dramatic, with current rates estimated to be at around 80-85% capacity.

The run cut was largely on the back of squeezed margins, as the styrene/benzene spread has sunk 40% or $143.5/mt from $363/mt at the beginning of January to $219.50/mt as of Tuesday, according to Platts data.

Typically, non-integrated styrene producers require a minimum breakeven spread of $250/mt between styrene and feedstock benzene to cover costs.

Styron purchased two March-loading styrene barges in the spot market on Tuesday at $1,565/mt FOB ARA, market sources reported.

According to sources close to the company, Styron's downstream polystyrene and acrylonitrile-butadiene-styrene plants are operating normally this month.