May month had seen the robust increase in the prices of Melamine. Despite lockdown, when the plywood, wood panel and Laminates industry are not able to reach its 35% capacity, the recent increase has surprised but it is fact.
Till writing this report, the melamine prices were touching toward 200 level, which is an all-time high. Users’ industry is in shock because they have neither seen nor expected such a sharp jump in melamine when the production has reached below 35 % due to lockdown scenario with increasing bad impact of the second Covid wave.
As per the report, China-bound Melamine prices have reported to reach beyond USD 2400 MT, and when anti-dumping duty has added it has reached above USD 2500 PMT. The domestic melamine producer GSFC is said to go for maintenance as per routine, which would back to production from the first week of June. GSFC might increase its production with the start of its second unit also in next month, as per sources.
Experts view that demand for melamine in Europe and China is robust, hence imported Melamine prices would not come down further. They expect that the melamine prices would not come down at the previous level in near future.
It is noted the High-Pressure laminate and wood panel industry consumes around 60 to 70 percent of the total pie of melamine in India. Because of the key consuming segment, Laminate producers would badly affect, once their production capacity will improve in June-July month, as expects.