15 December 2010 17:14 [Source: ICIS news]
(Recasts, clarifying headline and first two paragraphs)
LONDON (ICIS)--The cost of importing melamine into Europe has soared to $1,600-2,000/tonne (€1,200-1,500/tonne) because of continued tightness following months of production problems and the implementation of Chinese anti-dumping measures, a trader said on Wednesday.
The cost of spot material manufactured outside of the EU - and possibly subject to duty - increased by $100-480/tonne, or 31.6%, from $1,500-1,520/tonne around five months ago. This value is on a T1 CIF (cost, insurance and freight) basis.
“[European] producers are not selling spot. People are no longer buying Chinese material because of the anti-dumping, and Iranian imports are not making any big impact on the market,” a trader said.
However, one buyer said that $2,000/tonne was a more realistic minimum price for imported spot volumes, particularly for the next few weeks, adding that European producers would demand bigger hikes in the first quarter of 2011.
The European melamine market has been tight for six months because of unexpected and prolonged outages.
In November, the European Commission (EC) imposed provisional antidumping duties of between 44.9% and 65.2% on melamine imports from China for six months.
“This is confirmation of how problematic sourcing material is,” a producer said.
Fourth quarter contracts settled at €1,410-1,530/tonne FD (free delivered) northwest Europe (NWE), up €200-230/tonne from the previous quarter.
First quarter contracts were expected to increase by between €200-250/tonne FD NWE.
($1 = €0.75)
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