Melamine market felt heavy with excess. After China’s National Day holidays, shipments slowed to a trickle while production continued at stable rates.
Feedstock Urea offered no relief. Prices fell ** in September and drifted lower into October, with Shandong spot quotes for small. Farmers and fertilizer blenders bought only on dips, leaving urea plants with rising inventories despite operating rates dropping to **.***—down *.** points year-on-year.
China’s urea capacity grew by *.** million tons in H* **** to **.* million tons, with another *.** million tons due online by year-end. Total supply is now projected to outstrip demand through ****. National urea stocks hit *.** million tons by October *—up *** from pre-holiday levels—as idled units restarted amid weak industrial and agricultural pull.
Melamine supply mirrored the glut. From January to August, China produced *.*** million tons at a *** operating...
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