Indonesia’s SMR melamine unit restart uncertain

09 July 2008 09:44  [Source: ICIS news]

SINGAPORE (ICIS news)--Indonesia’s Sri Melamine Rezeki (SMR) has said that it will not be able to set a date for the restart of its 20,000 tonne/year melamine unit in Palembang, Sumatra which went down three days ago, a company source said on Wednesday.

"The sudden breakdown of the processing unit, one of the main equipments, caused the shutdown of our [plant]," said the source. "We have to stop production for an indefinite period of time."

Consequently, the company had raised its melamine offers to $1,800/tonne FOB (free on board) Palembang for August material. But the volumes sold for the month would be few, said the source.

Melamine prices had been increasing in the past month on rising feedstock urea costs and reduced spot availability.

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By: Salmon Aidan Lee
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