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Global Melamine Market Losses Momentum Amid Weak Profit Margins
Global Melamine Market Losses Momentum Amid Weak Profit Margins

Global Melamine Market Losses Momentum Amid Weak Profit Margins

  • 16-Mar-2023 2:33 PM
  • Journalist: Jacob Kutchner

Houston, USA- The global Melamine market showcases muted trading activities from the past few weeks in the wake of limited demand and well-supplied inventories among the ports. In terms of profit margin, narrowing the spread between the feedstock Urea and final product Melamine shrinks the sales and revenue among the significant producers.

In the USA, Melamine prices showcased a feeble price trend in the facMelae of limited product demand in the domestic and overseas markets. Prices follow a steep decline trend as suppliers provide discounts on their offers. Trading from the USA to the South American market slumped, and lower Melamine cargoes were sanctioned to the ports. Melamine contract prices declined, and higher product availability resulted in a feeble price trend. With feeble trading activity, the production rate in the USA also slumped in fear of further oversupplies.

The demand for Melamine from the downstream market remains lulled, and weak market fundamentals govern the price dynamics. The downstream laminate industry operated moderately as per the requirement of the end users.

In China, the bids and offers for the fresh Melamine cargoes declined, and buyers remained hesitant about sellers’ hike intentions. With low order entries, downstream laminate sectors have yet to recover, limiting expected hikes or rollovers. Regarding the feedstock market, Urea prices also fluctuated in the Southward direction with a narrow range. With the adequate supply, the major Melamine producers also declined their production rate to clear their existing inventories. Meanwhile, trading discussions from China to India and Southeast Asia remained thin amid slack import demand and no firmer indications for upcoming March cargoes.

According to ChemAnalyst, the price of Melamine in the global market will remain on the lower end in the forthcoming weeks. Buying indications were majorly muted, with suppliers purchasing the cargo immediately. It is also anticipated that producers may provide discounts on bulk purchases to sustain their profit margin. The demand outlook will soften, limiting the trading activities from the USA and China to the global market.

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