Mumbai, India- With sluggish demand and oversupplies of Melamine, India reduced imports from China, and traders started purchasing the product only for the need to basis. With the week ending on 15th July, the price of Melamine in India slipped to USD 1461/ton (99.8% purity) Ex-Ahmedabad.

Regarding feedstock, urea prices had also decreased in the region due to sufficient product availability. China diverted its Melamine cargoes to India and other Asian countries, resulting in high product inventories in their respective regional market. Downstream Melamine resin and laminate industries were also affected by deteriorating demand and weak purchasing appetite.

Focusing on China's market sentiments, the major export of Melamine in the Asian region, Melamine prices fell with sufficient product availability and affected purchasing power. Urea prices are declining due to lower-than-expected demand from the fertilizer industry, which also affects the prices of Melamine in the region. The melamine market remained deterred because of a reduction in input cost, higher crop yield, and muted fundamentals. From the demand perspective, laminates and Melamine resin industries were also affected by stockpiling and a weak trading environment. Deterred Melamine purchasing in the Asian market forced the significant producers to revise the product's prices for the overseas suppliers. With the week ending on 15th July, the cost of Melamine in China slipped to USD 1218/ton FOB Qingdao.

According to ChemAnalyst, the prices of Melamine in the Asian market will surge in the forthcoming weeks. Feedstock Urea prices will also accelerate due to healthy demand from the fertilizer and pesticides industries. The compound fertilizer and plywood market will also recover with a high purchasing rate and strong demand from end users. Exports from China to India and other Asian countries will be more likely to stabilize, and traders will ensure purchasing in bulk. Cost inflation will further narrow the profit and revenue among the major producers, and prices will revise for the overseas suppliers.