Asian Melamine Prices Edge Down 1.4% in Late October Amid Supply Glut

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 xx 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 xx.xxx—down x.xx points year-on-year.

China’s urea capacity grew by x.xx million tons in Hx xxxx to xx.x million tons, with another x.xx million tons due online by year-end. Total supply is now projected to outstrip demand through xxxx. National urea stocks hit x.xx million tons by October x—up xxx 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 x.xxx million tons at a xxx operating...