Eurochem's melamine output thwarted by technical problems

01 November 2012 16:17  [Source: ICIS news]

LONDON (ICIS)--Fertilizer producer Eurochem has begun selling melamine samples to the Russian domestic market, but production is sporadic because of technical problems, a source at the company said on Thursday.

The source said its melamine production has been stopped on several occasions to fix crystallization problems. “We are still in the process of equipment adjustment and technology checkout. Gradually, we are starting to sell test parcels, but only to the domestic market for now,” the source said.

The plant is located in Nevinnomyssk, Russia, and is expected to have the capacity to produce 50,000 tonnes of melamine per year. The company had planned to come onstream with melamine in the second quarter of 2012.

Tight supply and severely reduced inventories have pushed melamine spot prices in Europe up to €1,200-1,350/tonne ($1,558-1,753/tonne) FD (free delivered) NWE (northwest Europe), after having bottomed out at €900-950/tonne FD in March this year.

Fourth-quarter contract prices rose by €200/tonne from the previous quarter, and are at €1,280-1,350/tonne FD NWE.

($1 = €0.77)

By: Helena Strathearn
+44 208 652 3214

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