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.
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)
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