Beijing, China- Melamine prices for this month have been announced in the global market with a weak price trend compared with the previous month. Amid the year-end lull, global markets remained sensitive to sluggish buying activities.

In China, the Melamine market remains feeble this week, and the enterprise's quotation was mainly stable. From the cost perspective, the price of raw material Urea declined recently, and the cost support for Melamine weakened. With the week ending on 23rd December 2022, the price of Melamine in China stabilizes at USD 1110/tonne FOB Qingdao. Exports from China to India and other Asian regions remained slumped, and suppliers offered discounts on bulk purchasing to clear their existing stocks.

In the Indian market, the weak price trend was attributed to the region's bearish product demand and low purchasing activities. There remains an adequate supply of Melamine in India, forcing producers to discount their existing inventories due to the high operating rate among ventures. The demand for Melamine from the downstream laminate and thermosetting plastic industries remains lull. Significant players remain skeptical about declining the price as the further decline may affect their sales and revenue.

If we focus on the U.S. market, Melamine market operating rates were high, but domestic downstream demand was weak from a supply and demand standpoint. Procurement was based on demand, and the market trading atmosphere was general. Exports of Melamine from the U.S. to other North American and European regions remain affected, and trading was on a need-to basis.

According to ChemAnalyst, the demand for Melamine will improve with the new Year approaching and expected high purchasing activity and strong market fundamentals. Increasing the enterprises' production rate and bullish feedstock Urea prices will support Melamine markets. The trading environment is anticipated to improve amid bullish demand and higher export volumes from USA and China. Supply constraints and new bidding for the product with the New Year will further support the price trend.