Asian melamine prices were on a steady downtrend between mid-May and mid-August, as the industry entered its traditional low season. Inventory levels among plywood and adhesive makers were generally ample during this period, as reconstruction efforts in Japan were delayed following the devastating quake that struck on 11 March.
Prices for melamine of non-Chinese origin dropped by around 6% from mid-May to $1,500-1,550/tonne CFR (cost & freight) northeast/southeast Asia (NE/SE Asia). Meanwhile, values for Chinese melamine fell by nearly 10% during the same period to $1,320-1,350/tonne FOB (free on board) China, with traders slashing offers aggressively to induce buying interest from end-users.
Going into the fourth quarter of the year, market participants were expecting melamine demand to pick up ahead of the peak manufacturing period in September-November. However, some players continued to keep an eye on uncertainties in the western economies.
Updated to mid-August 2011