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Europe melamine spot prices fall €20-30/tonne on poor demand

ICIS News : 20-Jun-13 18:06

LONDON (ICIS)--European melamine spot prices fell by €20-30/tonne ($27-40/tonne) since the beginning of June, a decline that a source attributed on Thursday to poor demand.

The spot range is at €1,220-1,280/tonne FD (free delivered) NWE (northwest Europe).

There is very little business taking place, with the majority of players covered by their contracted volumes.

“The spot market is absolutely dead,” a seller said. “Everybody is covered. People have low inventories. There is absolutely no impact from Borealis’ turnaround, and BASF is back [following production problems].”

It said there was no tightness at all in the market. “The buyer is gone, let's say. All signs are for relief.”

“I’m not buying anything on the spot market. I am fully covered,” a buyer said.

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

($1 = €0.75)

By Helena Strathearn
+44 208 652 3214

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