06 September 2012 11:39 [Source: ICIS news]
LONDON (ICIS)--Romania-based Azomures plans to restart melamine production at its plant in Targu, Mures, next week, a source at the fertilizer producer said on Thursday.
Azomures' 18,000 tonne/year melamine plant has been out of action since December 2011, when it was shut because of poor buying interest, owing to weakened macroeconomic conditions.
“We estimate to start production next week,” the source said.
Despite limited enquiries for spot material, prices have risen by €30-80/tonne ($38-101/tonne) this week because of snug supply. Domestic spot prices are now at €1,080-1,180/tonne FD (free delivered) NWE (northwest ?xml:namespace>
The weaker euro versus the US dollar has resulted in fewer imports, but has made exporting to other regions more attractive, as suppliers are able to achieve a better netback.
Producers are targeting €100-150/tonne price increases in the fourth quarter, because of limited availability, fewer imports, stable demand and a need to recover lost margins which have been under pressure from high feedstock urea and ammonia costs. Melamine demand and prices have been on a downtrend since the second quarter of 2011.
Third-quarter melamine contracts settled at €1,080-1,150/tonne FD NWE.
($1 = €0.79)
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