LONDON (ICIS)--The European melamine market is relatively stable in the wake of most players concluding their second-quarter contracts earlier in the month, with good availability and mixed views on demand, sources said on Wednesday.
One producer said that it was seeing healthy usage of product and smooth execution of contracts, with demand improving due to increased seasonal activity from downstream markets.
It added: “We have more and more hope that we are entering a period of higher demand.”
“Seasonal construction works are becoming more intensive, and there are also microeconomic things like customers being willing to spend more money on new houses, and the increased purchase of automobiles.”
However, one buyer said that it sees weak demand for melamine as a result of low downstream usage, as well as good availability from most producers.
It said: “The market for melamine is very weak, and there has been no change for 40 days. All the producers are offering product but no-one is buying.”
It added: “There is no requirement from the market… June will be lower, and the third quarter will be a disaster in terms of consumption of melamine.”
Clearer market ideas are expected to emerge when more players return from holidays next week.
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