GSFC in focus
Melamine Prices soared (Domestic brokerage)
• Strong demand from building and construction sector amid tight supply due to some of the plant shutdown in European and Asian region mainly China have increased Melamine prices. Demand was also strong from the automotive sector as economies are in the recovery path- post Covid. Logistic issues further elevated the supply side issue. Melamine prices have almost doubled to 300/kg+ in spot market from an average of 140/kg in Q1FY22.
• Meanwhile, In India Ministry of commerce have recently recommended the extension of Anti Dumping Duty on Melamine for 5 years (which was ending on September 2021).
• GSFC has a total capacity of 55,000 MTPA of Melamine ( 3 plants- 40k, 10k, 5k).