Transcript Slide 1
1 2 3 Principal characteristics make melamine chemically unique: Stability - Highly resistant to heat and physical / chemical degradation Structure – when added with other chemicals and chemical compounds provides surface properties like hardness, gloss and scratch resistance Nitrogen content of 66 % allows it to be flame retardant and moisture resistant 4 Americas World Market Coatings, 8% HPL, 11% mouldin g powders, Others, 8% 8% Coatings, 22% moulding powders, 4% Others, 16% Adhesives, 8% Adhesives, 29% HPL, 21% LPL, 36% LPL, 29% Americas 72% in laminates and coatings 5 6 High Pressure Laminates (HPL) Low Pressure Laminates (LPL) Adhesives, resins for wood-based panels 42% 58% Wood Based Panels Others 7 8 Paper Impregnation Medium-density fiberboard 9 The melamine molecule typically multiplies horizontally This reaction is why melamine works so well for surfaces High Pressure Laminates are typically surfaces Low Pressure Laminates are typically vertical 10 11 Excellent Durability Versatility High wear resistance Low emissions 12 13 14 15 Glues/Adhesives in Wood Based Panels Particleboard (PB) and Medium Density Fiberboard (MDF) Purpose: to reduce formaldehyde emissions Goal: achieve CARB (California Air Resources Board) Phase 2 compliant (note: Federalized in July 2010 via US Congress and signed by President Obama) Usage: 1-2-3% in all Urea Formaldehyde (UF) resins 2011 demand: 15-20kt Flame retardants Foam products for bedding and furniture Purpose: reduce deaths as result of fires Goal: meet federal guidelines that vary between products Usage: added as melamine crystal to polyols 2011 demand: 1-2kt Paints Purpose: allow the safe exit of persons from buildings Goal: meet local requirements ie New York City Housing buildings Usage: additive in dry form to specialty paints 2011 demand: <.5kt 16 China is and will continue to be the wild card o Antidumping case in the EU is projected to rearrange the Chinese focus from Europe to ROW o Shift in natural gas in winter from industrial to residential needs o Older, less efficient plants are not projected to remain viable o In past few years China had to export ~150kt for global supply/demand to be in balance Japanese production is expensive vs rest of world o Will both Nissan and Mitsui continue? Europe’s natural gas is expensive vs rest of world o Will current capacity continue o Total cost due to raw materials (natural gas/ammonia/urea) & social systems make for expensive product Middle East has new capacity in Qatar but majority must be exported o Iranian production has limited outlets o No new capacity announced Americas o Only producer was Cytec in Louisiana, prior to MHTL coming online in recent months o Americas has been net importer for ~10 years o Cytec and MHTL combined will shift Americas to a net exporter General o Melamine plants typically don’t run at full rates year after year o Currency fluctuations cause shifts in geographic focus 17 18 In the early 1900’s the first plastic laminate material was made by impregnating kraft paper (similar to brown bag paper) with phenolic resin and compressing it under high temperatures and pressure in a process called thermosetting that irreversibly cured the resin. The resulting material was resistant to heat, water, chemicals and electrical current………. For more - http://www.surfaceandpanel.com/ Under Education Tab 19 http://video.bobvila.com/m/21321098/manufacturing-laminate-flooring.htm Laminate Flooring http://www.youtube.com/watch?v=GBrgZihZhjs&feature=related Chipboard Desks http://www.youtube.com/watch?v=wW1RY7FZjFs&feature=related Corrugated Paperboard http://www.youtube.com/watch?v=qitenYvpSx4&feature=related MDF and HDF 20 • Global demand continues to increase • Growth rates vary in each area of the world • Economy improves as consumer confidence increases • Supply of melamine improves as MHTL/Qatar production increases to full capacity • Moderate improvement in stocks from Q2 onward • Supply from China into Europe remains in doubt due to antidumping claim in the EU • Price are stable through Q1, after increases every Q of 2010 • Prices decrease slightly then stabilize after Q2 • Market welcomes MHTL’s new capacity • MHTL’s is able to achieve market penetration/share without being disruptive • Global Supply/Demand continues to be the major driver relative to pricing 21 22 23 24 Thank you QUESTIONS??? 25