Japan’s Nissan Chemical Industries may extend melamine shutdown

21 March 2012 02:41  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Nissan Chemical Industries will run its 50,000 tonne/year melamine facility in Toyama at about 70% capacity and may extend the unit’s month-long scheduled turnaround in late June by another two weeks because of poor demand and negative margins, a company source said on Wednesday.

“Our margins are negative. The company will run the plant at a reduced rate and may extend the turnaround by another two weeks until August as demand is very weak,” the source added.

Construction activities have slowed amid weak global economic conditions and the delay in reconstruction works in Japan, following the earthquake and tsunami last year, has dampened buying sentiment, industry sources said.

Nissan Chemical Industries is planning to shut the unit at the end of June for maintenance. It was originally scheduled to be shut for a month until the end of July.

In the week ended 14 March, spot melamine prices were at $1,350-1,400/tonne (€1,026-1,064/tonne) CFR (cost & freight) northeast (NE) Asia, down by $50-100/tonne from mid-February, according to data from ICIS.

Melamine adhesive resins are used in the manufacture of wood panels for the construction of kitchen and bathroom cabinets, and flooring.

($1 = €0.76)

By: Helen Yan
+65 6780 4359

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