China’s Sichuan Chemical runs melamine plant at 90% after restart

06 February 2012 09:32  [Source: ICIS news]

SINGAPORE (ICIS)--China's Sichuan Chemical has achieved “normal” operating rates at its 30,000 tonne/year melamine plant at Hejiang in Sichuan province after restarting it on 1 February, a company source said on Monday.

The plant was shut in early November last year because of a shortage of feedstock natural gas, according to the source.

“The plant is running normally now, at about 90%,” the source said.

The producer’s 12,000 tonne/year and 13,800 tonne/year melamine plants at Qingbaijiang in Sichuan province remain shut because of the tight supply of natural gas feedstock, the source said.

Sichuan Chemical’s two 12,000 tonne/year melamine units at the same site in Qingbaijiang are “running well”, the source added.

Domestic premium melamine prices are likely to fall amid sufficient supply, as a result of Sichuan Chemical’s plant restart, a market player said.

The domestic prices of regular melamine in China are at yuan (CNY) 7,700-7,900/tonne ($1,220-1,252/tonne) EXW (ex-works) and premium melamine prices are at CNY8,400-8,500/tonne EXW, according to data from Chemease, an ICIS service in China.

Sichuan Chemical is a major fertilizer and chemical producer in Sichuan province. It has five melamine plants at Hejiang and Qingbaijiang, which have a combined capacity of 79,800 tonnes/year.

($1 = CNY6.31)

By: Nicole Zhang

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