21 September 2012 05:39 [Source: ICIS news]
By Samuel Wong
Buyers, on the other hand, are expected to pose a strong resistance to higher prices given availability of cheaper cargoes from
On 19 September, melamine prices were assessed at $1,350-1,400/tonne (€1,040-1,078/tonne) CFR (costs and freight) SE (southeast)
Over the same period, export prices of melamine originating in
With the availability of lower-priced cargoes from
Melamine is largely used to make adhesive resins, which are used in wood panels for the construction of kitchen and bathroom cabinets and flooring.
Regular and premium Chinese melamine can be used for glue/adhesive usage, while premium quality melamine – which is mostly produced in
Market players said that premium grade melamine should command higher prices.
“Prices have to be increased because of higher costs and raw materials, and as we shift our attention to buyers who need such melamine goods,” a northeast Asia-based producer said.
Downstream demand for melamine, however, remains weak and is unlikely to support high prices, a southeast Asian buyer said.
Consumers are only purchasing on a need-to basis, unwilling to take the risk amid an uncertain market outlook, another buyer said.
Weak demand forces melamine facilities in northeast
“The operating rates really depend on market conditions,” said a northeast-Asia based producer.
Mitsui Chemical is planning to shut its 40,000 tonne/year melamine plant at
($1 = €0.77)
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