The recent announcements of melamine plant closures in Europe and Asia will definitely have an impact on the global supply and demand balance. Investments are needed in the future to meet the increased demand, which remains healthy. Leon Halders, Vice President Marketing and Sales for DSM Melamine, comments that the realized price increases for melamine achieved in Q1 have been disappointing. Very much so since upstream feedstocks like ammonia and urea reached all time high price records during the last couple of months. “ We need to bring 2007 prices up by at least 150$/Euros per ton, over 2006 prices, in order to come back to a sustainable business”. So further price increases can be expected in all the regions. Demand for melamine continues to grow well above GDP levels, whereas supply is shrinking. Major volumes will have to be shipped across the globe in order to fulfill regional demand. This is especially the case in the USA where a sizeable amount of melamine has to be imported from Asia and Europe. The existing price levels do not yet reflect this situation and Mr. Linn Yeager, the newly appointed President of DSM Melamine Americas, believes that a price increase for Q2 of 5 cents/pound is realistic. “Also in Europe and APAC, we will go for considerable price increases,” says Leon Halders. “We realize that the desired levels are difficult to reach in one shot, but until the target is reached the pressure will remain on.”