Limited Trading Activities Result in Gloomy Demand Outlook for the Global Melamine Market

Louisiana, USA- In the Global market, Melamine demand appears to be conservative, with weak trading fundamentals, and purchasing activities did not turn out better. The inventory level is high and significant producers remain reluctant to increase the price for the overseas market.

US Melamine producers declined the prices for the domestic market on the back of surplus regional supply, and feeble downstream laminate industries drove pressure on trading fundamentals. On the supply side, Melamine producers still suffered from surplus inventories in effect with a reduction in production rate. With the week ending on 14th April, the price of Melamine settled at USD 1620/ton FOB Louisiana with a weekly decline of 0.61%. Exports of Melamine from the USA to the South American market slumped, with limited cargoes traded due to a lack of demand for fresh stocks.

In China, the demand outlook remained feeble for the Melamine market, with limited buying activities from the downstream laminate industries. The price of Melamine in China slumped to USD 990/ton FOB Qingdao with the week ending on 14th April. On the feedstock side, Urea prices also sideline, and the spread between feedstock and final product Melamine shrank, limiting the profit margin and sales among the significant downstream ventures.

Melamine demand from the downstream laminate industries struggled with limited requirements for fresh offers. Significant producers have also cut production rates affected by high inventory.

According to ChemAnalyst, the Melamine market is anticipated to remain affected by a bearish market outlook and feeble requirements for fresh purchases. Suppliers are anticipated to trade the cargoes on a need-to basis with limited trading activities from China and the USA to the global market. However, freight charges are still struggling to rebound with low transportation costs and sufficient container availability. In addition, spot prices will decrease, and major producers will be forced to eliminate their existing stockpiles due to surging inventories.