01 November 2012 17:37 [Source: ICIS news]
LONDON (ICIS)--Netherlands-based OCI Melamine plans to build up its stock levels in the first quarter of 2013, ahead of its regular maintenance turnaround which begins at the end of the quarter, a source said on Thursday.
The 150,000 tonne/year melamine producer, based in Geleen, plans to continue to supply its contract volumes during the shutdown.
“The turnaround will last three weeks and will run into the second quarter [of next year],” the source said. “If all goes to plan, it will have no effect on the market,” the source added.
Producers' stock levels are low, and supply has tightened on production disruptions and a lack of imports. Spot prices have risen to €1,200-1,350 ($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 European melamine contract prices increased by €200/tonne from the previous quarter, and are at €1,280-1,350/tonne FD NWE.
Melamine is combined with formaldehyde to produce melamine formaldehyde resin. End-products include counter tops, dry erase boards, fabrics, glues, houseware, guitar saddles, guitar nuts and flame retardants.
($1 = €0.77)
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