Rising costs forced the melamine industry to intensify

As global resource prices continue to climb, melamine production bases using urea as raw materials are continuously concentrated. With the continuous expansion of the application fields of environmentally-friendly downstream products such as melamine-modified urea-formaldehyde resin adhesives, the demand in the international market has grown steadily and continues to extend downstream. The senior industry figures at the just-concluded “Second China Melamine and Downstream Industrial Development Promotion Summit” analyzed that the international melamine industry base has further highlighted the characteristics of industrialization, scale, and industrialization, which fully shows that the development of the melamine industry is intensive. The direction is moving and the pace is accelerating.
Increasing concentration of production bases Due to substantial price increases in basic materials such as crude oil and natural gas, some melamine manufacturers in the United States, Japan, South Korea and other countries have successively suspended production. Production companies in other regions of the world have successively reduced their production due to factors such as production costs, such as Japan Mitsui and US cyanamide. The company and so on have reduced production by more than 50%. Mitsui has already withdrawn from melamine production in February last year.
While some companies stop production or withdraw, international melamine giants are looking for new strategic bases. The Dutch company DSM, the world's largest melamine producer, announced in October last year that it will make strategic adjustments to its melamine business in Europe within the next one to two years and adopt joint ventures or sales to increase its influence in other regions.
In 2008, the new project of the international giant fully confirmed its strategic intentions. After consulting with a number of domestic companies, DSM eventually reached an agreement with Shanxi Fengxi Fertilizer for the operation of melamine. On February 28 this year, DSM officially announced the establishment of a melamine joint venture company. The Lurgi company's 40,000 tons/year melamine project is expected to be put into production in Russia in June. AMI's 80,000-ton plant in the Middle East is under construction and is expected to start production in 2009.
Wu Haibo, deputy general manager of Sichuan Meiqing Cyanamide Co., Ltd., said that the main global bases for melamine production in the future are: China in Asia, the Middle East, and the Black Sea.
The downstream conversion of the manufacturers themselves will be an inevitable choice for the development of the melamine industry. Li Jian, director of the Beijing Triazine Xingda Chemical Research Institute, introduced the main characteristics of melamine consumption and product structure in the United States and Western Europe.
U.S. melamine industry has maintained high consumption and high growth in the coatings industry for many years under the strong support of traditional products and innovative surface technology. In addition, the intensive and large-scale production mode of the US melamine industry has ensured reliable product quality, and at the same time, it also ensures the company's ability to receive new products and new technologies. Relying on the production of melamine and other related key raw materials, the US melamine industry adopts the method of extending and expanding the industrial chain, expanding the scale of enterprises and developing new products. The development history and product structure of amino resin and its related products of Cytec, USA have the above-mentioned obvious features. Its trademark, Cymel, has more than 50 varieties of downstream products based on melamine as its main raw material. The products cover many types of coating resins, impregnated resins, special additives, adhesives, etc., and are self-contained and matched to ensure that their products are in this The long-term dominance in the application field.
In Western Europe, BASF, Linz, DSM, etc. are both melamine backbone producers and downstream product manufacturers. BASF's 70,000-ton/year melamine was converted into a downstream product on its own, and the internal conversion rate of Linz's melamine was as high as 50%. These backbone manufacturers provide strong technical support for the development of downstream products and technological advancement as well as the expansion of new application areas. The highly commercialized and large-scale production model also guarantees the development of new products, technological progress, and product quality. For example, BAURA's trademark KAURAMIN has more than 30 types of wood glue and impregnated resin based on melamine, and KAURIT's urea-based wood glue and impregnated resin have more than 30 varieties.
The pace of intensification accelerates the international energy prices will continue to rise in 2008. As a result, some of the melamine plants are too costly and do not rule out the possibility of continued stoppages and production cuts. The global major melamine consumer market has strong demand in Europe, North America, and Southeast Asia. There is a gap between supply and demand. Yan Haibo said: “This is good news for the melamine industry. Before the new large-scale installations are not put into production, the increase in international demand will continue in the coming period.”
The development of the melamine market has also promoted the continuous development of its industrial development. Melamine is mainly used in the production of melamine-formaldehyde resin, which has the advantages of non-toxicity, heat resistance, aging resistance, high gloss, high chemical stability and good electrical insulation. It is widely used in wood processing, plastics processing, papermaking, textiles , leather and other industries. Melamine can be used as a flame retardant, water reducer, formaldehyde cleaner, etc. It is an environmentally friendly product; melamine can also be used as a rubber adhesive, fertilizer synergist, high-temperature nitrogen infiltration agent and synthetic anti-cancer drugs, etc. Widely used chemical raw materials.
According to Zhou Chunguo, technical service manager of DSM (China) Co., Ltd., the development of new applications will increase the market capacity of melamine. In the long run, international melamine development will maintain its growth trend. The rapid development of this industry will inevitably accelerate the pace of intensification.

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