06 March 2013 23:00 [Source: ICIS news]
HOUSTON (ICIS)--US chemical maker Cornerstone Chemical announced on Wednesday it will increase the price of melamine by 5 cents/lb ($110/tonne, €85/tonne) for the second quarter.
Louisiana-based Cornerstone said it will increase melamine prices effective on 1 April, or as contracts allow.
Contract prices for melamine for the first quarter as assessed by ICIS were in a range of 103-116 cents/lb.
The company cited increasing global feedstock costs, tighter supply and increasing demand in both the automotive and housing industries as factors contributing to the increase.
A buyer said it was sceptical about the need for an increase, saying it is able to get whatever material it needs, despite the supply tightness.
"They are simply opening the door for the Asians again," the buyer said, referring to Asian imports.
Cornerstone, the only North American producer of melamine, operates a 60,000 tonne/year melamine plant at Waggaman, Louisiana.
Major markets for melamine include laminated wood products and surface coverings.
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