01 December 2010 14:15 [Source: ICIS news]
LONDON (ICIS)--Major European melamine sellers will target increases of €200-225/tonne ($260-292/tonne) on first quarter prices because of reduced stock levels following months of restricted availability, producers said on Wednesday.
“What we’ve seen in the last two weeks is people asking about the next quarter and usually we only discuss these things in January. People want to know not only about prices but availability,” one producer said.
“There has been no change to the recent market dynamics nor in the outlook. It is still tight and we’re still getting more requests than we can honour,” it added.
Another major seller was expected to announce its first quarter price intentions next week.
“November was a strong month and our order levels are stronger now than last year. Demand will be healthy in the first quarter and with supply so short, we will be aiming for significant increases,” the seller said.
Fourth quarter contracts settled at €1,410-1,530/tonne, up €200-230/tonne from the previous quarter, following months of tight supply, owing largely to unplanned and prolonged shutdowns and strong demand.
($1 = €0.77)
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