Published on October 20, 2016

Recent shoot up of melamine prices has made the market players uncertain over how prices will trend in the near term. Chinese domestic melamine prices have augmented stridently as production cut due to government obligatory inspection has made the supply shortage.

This week domestic melamine prices were assessed in the range of Rs 106-107/kg for Mumbai and Rs 108-109/kg for Ahmedabad ports of India.

As per the report, in the month of September imported quantity of melamine were around 2880MT, while in August imports were about 4319MT. In compare to previous two months September imports were lesser around 50%.

In China market swift boost in the prices after holiday was surprising for Chinese producers, as they restarted from recent shutdowns and tight supply conditions were lessening.
Recently CFR China prices were assessed in the range of USD1240-1260/mt and CFR Iran prices were evaluated around USD 1290-1310/mt.

Some market players have said that, buyers were amazed to such high offers and were not intense to engage in negotiations as they had secured some quantities during the downtrend.
Currently buyers have adopted wait and observe stances. However, it is uncertain to predict the market whether prices will go up and down as prices have been explosive.

In China environmental inspections in the Shandong area have forced producers to decrease their operating rates. Chinese Shandong Shuntian shut its melamine plant on 30 September and is anticipated to resume on 27 October, The plant is having the production capacity of around  100,000 mt/yr. Luxi Chemical has also shut its melamine plant after the recent Golden Week holiday and the resume date is still unclear.