Corrected: Europe Q3 melamine contract prices set for rise

21 May 2008 17:53  [Source: ICIS news]

Correction: In the ICIS news story headlined “Europe Q3 melamine prices set for rise” dated 22 May 2008, please read in the final paragraph … settled at €1,360-1,440/tonne ($2,125-2,250/tonne) … instead of … $1,360-1,440/tonne (€870-€922/tonne)  …. A corrected story follows.

 

LONDON (ICIS news)--Prices looked set to rise once again in the European melamine market for third-quarter business, buyers and sellers said on Wednesday.

 

Following the recent settlement of second-quarter contracts, buyers expressed concern that sellers’ relative success would lead them to ramp up prices in the next quarter.

 

One buyer said the upward trend seen on melamine prices of late was a worrying sign that producers might be able to achieve a further hike.

 

Their worst fears were realised when two sellers said they would both seek to incur substantial increases for the third quarter.

 

Although it was too early to ascertain exact figures, one said it would be pushing through a "steep increase", due to the spiralling costs of raw materials. Furthermore, the failure to achieve its desired target in the last round of negotiations had left it no choice but to battle once again, it said.

 

In addition, the recent earthquake in China had cause buyers’ to be concerned that imports will reduce hugely, thereby making it a sellers’ market in Europe.

 

Nevertheless, they would be putting up fierce resistance, buyers said.

 

One consumer said demand had failed to match the steady rise in contract prices and was therefore unwilling to accept further hikes.

 

Second-quarter business was settled at €1,360-1,440/tonne ($2,125-2,250/tonne) FD (free delivered) NWE (northwest Europe) by chemical market intelligence service ICIS pricing.

 

($1 = €0.64)

 

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By: Fiona Bond
+44 20 8652 3214

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