China Melamine Analysis In May.2025

In May, the average spot price of melamine in China was 5,450 yuan/ton, down 2.84% from the previous month and 14.63% from the previous year.

Before the May Day holiday, various melamine companies cut prices to attract orders, but the effect was not ideal. Most downstream terminal factories were not willing to buy, and only a small number of rigid demand followed up. The inventory of various companies increased. However, after the holiday, the price of raw material urea rose due to the fermentation of export news. Driven by costs, the price of melamine rose slightly in early May. At this time, the capacity utilization rate of the melamine industry reached a new high this year. Although various companies tried their best to support prices under cost pressure, the high daily production dragged down the market trend.

In the second half of the month, as the export details of raw material urea were clarified, the price of raw materials loosened, and the willingness of melamine enterprises to maintain prices weakened, and prices began to fall gradually. Under the influence of serious profit losses, some melamine plants were shut down for maintenance. Although the industry’s capacity utilization rate fell below 70% in the second half of the month, various companies had inventory, and the supply and demand relationship was not effectively improved. Prices continued to fall and stabilized at the end of the month.