Europe spot melamine price range narrows on poor demand

05 June 2013 16:22  [Source: ICIS news]

LONDON (ICIS)--Spot prices in the European melamine market have fallen by €50/tonne ($66/tonne) on the high end this week, on weak demand in a balanced-to-long market, sources said on Wednesday.

The spot range is at €1,250-1,300/tonne FD (free delivered) NWE (northwest Europe).

Some business is taking place, but enquiries are limited as volumes are largely being covered by contract.

Prices have dropped by €50-100/tonne since the settlement of second-quarter contracts

The second quarter is typically the market's strongest for demand, boosted by increased activity in the end-use construction sector. However, macroeconomic instability has slowed consumption as market participants continue to exercise caution.

Demand has dropped by 5-30% compared with levels in the second quarter of 2012.

One buyer said: “Demand is on a stable but low level, around 30% below Q2 demand last year, because of the bad economy and poor demand from the wood-working industry.”

Melamine is combined with formaldehyde to produce melamine formaldehyde resin. End-products include countertops, dry erase boards, fabrics, glues, housewares, guitar saddles, guitar nuts and flame retardants.

($1 = €0.76)

By: Helena Strathearn
+44 208 652 3214

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