19 February 2014 20:01 [Source: ICIS news]
LONDON (ICIS)--The European melamine spot market is long and price offers remain competitive, a trader said on Wednesday.
The trader explained that imported volumes in an already well-supplied market are adding further downward pressure to pricing.
“We are seeing a lot of spot material in the market from everywhere – it’s unbelievable. It's seems there is not that high demand that some producers would like to see," the trader said.
Imports are understood to be arriving from Japan, Qatar and Trinidad, the source said.
The trader went on to say that the outlook for the second quarter is unclear amid an uncertain economic environment, and added that it saw no reason yet for prices to rise.
“We need to wait a couple of weeks to understand what is going to happen in the market," the trader said. "People are saying there will be a rollover towards Q2, but I think it's too early to say.
"I think fundamentals show there are no reasons to increase [prices]," the trader added. "Almost every producer has excess material. For sure the spot material is easily available.”
The trader valued spot in the mid-to-high €1,100s/tonne FD (free delivered) NWE (northwest Europe), adding that €1,200/tonne FD was the maximum achievable price. It attributed the weak market to the state of the economy.
Melamine is combined with formaldehyde to produce melamine formaldehyde resin. End-products include countertops, dry erase boards, fabrics, glues, housewares, guitar saddles and guitar nuts.
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