Global Melamine Prices Level Off Amid Fall in Demand

Beijing, China- Global Melamine prices showcase a southward trend with weak spot and contract prices affecting the market fundamentals. The trading market also slumped, weighed down by rising port inventories and a feeble trading environment.

In China, the Melamine market could not find support with bearish demand from the downstream laminate industries. Offers by the Melamine producers have already been reduced to stimulate demand, but the trading fundamentals are not strong to maintain the profit margins and revenue among the enterprises. In terms of the feedstock market, Urea follows a steady price trend with no new offers among the suppliers amid muted trading discussions. The Chinese market does not seem to have much to offer since Urea at the ports cleared for export has found its way back to domestic spring demand. This spring, the Chinese government issued guidance emphasizing that farmers should have sufficient fertilizers, so they are storing Urea for their domestic consumption.

The price of Melamine in the USA slipped to USD 1720/ton FOB Louisiana with the week ending on 24th February. In terms of the downstream market, the decorative laminate market is witnessing a dropping trend in prices of liner-grade laminates with limited trading fundamentals from the past few weeks. Low levels of demand for Feedstock Urea coupled with rising inventories and a decline in Melamine production costs are pressures on the market for Feedstock Urea. The spot discussions declined, and suppliers traded Melamine on a need-to basis. Exports of Melamine from the USA to South America decreased due to product oversupplies, and end demand across the USA remains in doldrum.

According to ChemAnalyst, the global Melamine market will be lost its stream, and major producers will not post any further hikes in the forthcoming weeks. In China, the demand will not remain strong, and manufacturers will remain skeptical about increasing the prices due to adequate inventories and limited demand. In the USA, the Melamine demand from the domestic and overseas markets will remain under pressure from feeble demand from the downstream enterprises and lower freight charges.