Market Recovery for Global Melamine Remains Bearish Amid a Lack of Trading Activities
- 30-Mar-2023 4:32 PM
- Journalist: Rene Swann
Shandong, China- The market trading Activities for Melamine in the global market slumped with lackluster demand and slow market offtakes. Global Melamine prices plummet as a consequence of adequate product availability and a widening supply/demand gap.
With the week ending on 24th March, the price of Melamine in China slipped to USD 1060/ton FOB Qingdao with a weekly decline of 0.93%. Benchmark futures for Melamine headed down this week with lower export prices for Indian and other Asian markets. There was less spot cargo demand, and the manufacturer mainly executed the pre-contract orders. This week, the feedstock Urea market was stable, with an increase in supply among the enterprises. The demand for fresh stock of Melamine remains insufficient, and the downstream procurement was also weak. The negotiations for bulk purchases from the suppliers remain tepid with discounts to the buyers. The demand support was feeble, and declining contract prices for the upcoming months resulted in a weak price trajectory.
Increasing product inventories and a decline in the production cost among the enterprises hampered the US Melamine trading fundamentals. There was a slump in demand for Melamine in downstream markets, such as the laminate industry, and weak product demand hindered price increases. Low trading fundamentals, weak benchmark futures, and thin spot discussions primarily drive the bearish price trend. With the week ending on 24th March, the Melamine price in the US declined to USD 1700/ton FOB Texas.
According to ChemAnalyst, the Melamine prices will showcase a declining purchasing trend with weak spot price discussions. The price of Melamine in the global market will decrease in the short-term period due to declining Urea prices and a decrease in demand. Sales volumes will also affect low market trading fundamentals, and it is anticipated that sellers will entertain the negotiation for price discounts to the buyers. In the Asian market, product demand is anticipated to remain weak due to Ramadan, which will slow trading activities with no firmer requirement for fresh stocks.