Melamine Prices Pulled Back Under Pressure due to Weakening Costs and Insufficient Demand

This week, the domestic melamine market in India remained stable initially before experiencing a surge and subsequent decline, reflecting an overall pattern of weak fluctuation. The benchmark price for urea stood at 1,757.50 RMB/ton as of October 13, marking a 1.26% decrease compared to the beginning of the month.

On the supply side, domestic melamine producers have maintained relatively stable operating rates, ensuring ample supply. Although factory shipments proceeded normally during the earlier period of price stability, downstream buying interest waned following a price spike. This led to a struggle in sustaining price levels, resulting in a decline. Falling urea prices have somewhat alleviated cost pressures on manufacturers but have also weakened the upward cost-side support for melamine.

On the demand side, downstream industries, such as panel and impregnated paper producers, showed limited restocking activity post-
.holiday. Purchasing was driven primarily by immediate needs, with little willingness to buy at higher price points. After a brief price surge earlier in the week, a wait-and-see sentiment took hold downstream, with a lack of follow-through in large-volume transactions preventing sustained price increases.

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