US melamine price outlook unclear on demand uncertainty

31 May 2012 19:03  [Source: ICIS news]

HOUSTON (ICIS)--The near-term price outlook for US melamine is unclear as producers and sellers prepare to enter into negotiations for third-quarter 2012 contracts, sources indicated on Thursday.

Producers have signalled to the market that price increases are likely for the third quarter as melamine demand is increasing while production margins have decreased because of seasonally high costs for feedstock ammonia and urea.

Stagnant demand for construction materials such as wood panelling and flooring have kept a damper on melamine demand, making price increases unjustifiable, a buyer said.

The automotive sector, a major consumer of melamine and melamine resins for parts and coatings, has been a bright spot for melamine producers as vehicle manufacturing works its way back to pre-recession levels.

US bulk melamine prices are currently assessed in a range of 84.50-97.50 cents/lb ($1,863-2,149/tonne, €1,509-1,741/tonne) DEL (delivered), according to ICIS pricing.

($1 = €0.81)

By: Frank Zaworski
+1 713 525 2653

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