US Cornerstone proposes 5 cent/lb increase for melamine

11 March 2011 17:39  [Source: ICIS news]

HOUSTON (ICIS)--US melamine producer Cornerstone Chemicals proposed on Friday a 5 cent/lb ($110/tonne, €80/tonne) increase, effective on 1 April.

Cornerstone, formerly part of Cytec Industries, attributed the increase to strong melamine demand and higher costs for upstream feedstock ammonia.

The price of benchmark Tampa (US Gulf) ammonia for March is $545/tonne CFR (cost and freight), up $30/tonne from February.

After a year of quarter-after-quarter increases, Cornerstone will have difficulty getting this increase accepted, a buyer said.

Cornerstone operates an 80,000 tonnes/year melamine plant near Fortier, Louisiana.

Cornerstone is a unit of Florida-based HIG Capital.

($1 = €0.73)

By: Frank Zaworski
+1 713 525 2653

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