Asia melamine prices stable-to-firm amid balanced demand/supply dynamics
Melamine prices in northeast and southeast Asia are assessed as stable, with buying and selling ideas heard at the published range. However, prices in China are assessed as $20/tonne higher at the low end of the range to reflect the deals and discussions done.
A medium-sized cargo of Chinese origin was heard done at $1,370 CIF SE Asia. Other deals were heard at $1,370-1,400 CIF SE Asia for small-sized cargoes of Chinese origin.
Sources said that end-users are uncertain of the fourth-quarter demand because of the volatility in crude futures, which might have an impact on the housing and construction industry. Some buyers have retreated to the sidelines to monitor possible trends ahead of the supposed peak manufacturing season.
A Japanese producer said Chinese prices are very hard to match as they are very competitive. Moreover, there is ample supply in the Japanese market and producers are in no hurry to offload inventory. As such, no trades were done this week.
Selling notions for melamine cargoes of non-Chinese origin were heard at about $1,550/tonne CFR NE/SE Asia.
There were 12 containers of non-Chinese origin to be delivered over the third quarter of the year heard settled at $1,600/tonne CFR Europe Main Port.
Chinese domestic melamine prices rebounded this week to yuan (CNY) 8,800-9,000/tonne EXW, CNY100/tonne higher than the previous week. The prices of premium material were at CNY9,000-9,200/tonne EXW, CNY100-200/tonne higher than the previous week.
The prices of domestic urea prices are stable this week at CNY2,280-2,400/tonne EXWH.
Covering Editor: Loh Bowei
($1 = CNY6.43)
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