China’s Zhongyuan Dahua shuts melamine unit on feedstock shortage

14 December 2012 08:02  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Zhongyuan Dahua Group has shut down its 30,000 tonne/year and two 15,000 tonne/year melamine units at Puyang in Henan province on 13 December as a result of shortage of gas feedstock, a company source said on Friday.

No restart date for the three units was disclosed by the source.

“The shutdown may have little impact on the local supply but will not impact the domestic market because winter is an off-season for melamine demand,” the source added.

Natural gas supply is usually tight during winter as most of it is allocated to residential areas for heating purposes, according to the source.

Melamine is used in a variety of applications, including the production of moulding powder, flame retardants, ink and home appliances.

Other uses include adhesive resins, which are used in the making of wood panels for the construction sector.

By: Adele Zhu

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