The Global Melamine Market Oscillates With the Gradual of Inventories Among the Enterprises

Texas, USA- In the USA, Melamine suppliers are gradually increasing the prices with recovering demand and supply pressure, lending support to the market. The demand from the downstream laminate industry elevated with the continuous utilization of inventories. Tepid netback and rising spot prices in the region further strengthen the cost. Prices rose for the first time after remaining stable for the past few weeks, spurred by restricted supply.

With the week ending on 13th Jan, the price of Melamine in the USA surged to USD 1921/ton FOB Texas. Demand from resellers and suppliers started to stream into the product, generally for immediate needs from the downstream venture. New offers of Melamine were displayed to the spot market as many traders showed interest in the purchases.

In China, the Melamine market was stable with tepid market fundamentals. The price of feedstock Urea rose along with bulk trading among the suppliers. The operating rate of Melamine among the enterprises was at a low level, with a gradual increase in trading activities from China to other Asian regions. With the week ending on 13th Jan, the price of Melamine in China was USD 1100/ton FOB Qingdao. However, demand for exports has been much lower than usual due to the Chinese Lunar New year, and the freight rates are under pressure again with the Lunar New Year's holiday.

According to ChemAnalyst, the price of Melamine in the USA will increase with a surge in purchasing activity and high product bidding. Exports of Melamine from the USA to the South American region will trade higher along with a gradual increase in spot prices. However, in China, the trading fundamentals will decline due to the Lunar New Year holidays, which will slow the purchasing activities in the region. The container spot rate index on trans-Pacific routes has remained flat recently and is expected to decline further due to lower trading activities.