10 April 2013 21:12 [Source: ICIS news]
HOUSTON (ICIS)--Contract prices for US melamine delivered in the second quarter of 2013 have increased by 5 cents/lb ($110/tonne, €84/tonne) from the previous quarter, based on tight supply and improving demand, sources said on Wednesday.
Recent production problems at both Louisiana-based Cornerstone Chemical, which declared force majeure on melamine last week, and Southern Chemical's melamine plant in Trinidad and Tobago, virtually assured full implementation of the price hike, sources said.
Additional production outages in Europe further strengthened the price hike proposals, sources said.
While both the Cornerstone Chemical and Southern Chemical plants are back up and running, supplies remain very tight as the producers attempt to fill orders and rebuild inventory levels.
Another factor supporting the price hikes is improving demand, with a reviving home construction industry providing some momentum to the market, sources said.
The ICIS assessed price range will be undergoing a downward non-market adjustment from 1 May and so it has not been included in this article.
($1 = €0.76)
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