Chinese Melamine Under Pressure, Demand Likely to Resurface in October
Melamine market in China has been facing weaker price realisations since the past few weeks. FOB China Melamine prices remained hovering around USD 700-675/MT in September while the market remain shrouded with persistent demand dullness. While Chinese Melamine suppliers are keenly analysing the impact of the week-long National Day holiday in October, some producers who had announced their turnaround plans starting mid-September till October first week are preparing to restart amid anticipations of rise in exported volumes to the Southeast Asian countries. Demand is like to spur as the market gazes ahead for Diwali and festive season in India. In the meanwhile, India, the key importer of the Chinese Melamine, has started evaluation of anti-dumping probe on its Melamine imports after a complaint was filed by Gujarat State Fertilizers & Chemicals Limited this month. The Antidumping duty was first imposed on the product in 2004 and was later extended after cycles of reviewing. The government of India is planning to extend the duty (which is likely to expire on January 27, 2021) to guard the domestic industry from the material injury. Melamine is used to manufacture melamine formaldehyde resins, a majority of which is used to produce laminates & wood adhesives which offer desirable hardness, resistance to scratch, stain and better thermal characteristics and are widely used in the building and construction sector.