Japan’s Mitsui plans to shut Osaka melamine plant in October

15 August 2012 04:01  [Source: ICIS news]

(recasts paragraph one and two for clarity)

SINGAPORE (ICIS)--Japan’s Mitsui Chemicals plans to shut its 40,000 tonne/year melamine plant at Osaka in October for a turnaround that normally lasts 45-days but can be prolonged if market conditions remain poor, a company source said on Wednesday.

The annual turnaround comes at a time when melamine demand is weak and margins are being squeezed for most producers, sources said.

Mitsui Chemicals is currently operating the unit at full capacity to build up inventory ahead of the shutdown, the source added.

Melamine prices in Asia declined by $10/tonne (€8.10/tonne) on the high end on 4 July to $1,300-1,360/tonne CFR (cost & freight) NE (northeast) Asia. The prices were hovering around that level on the last assessment on 8 August, according to ICIS data.

While on a CFR SE (southeast) basis, prices fell by $10/tonne on the high end on 18 July to $1,280-1,350/tonne, mostly unchanged on the last assessment on 8 August.

($1 = €0.81)

By: Samuel Wong

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