In March 2024, Melamine market demand remains weak, and melamine powder prices are under pressure to decline.

At the beginning of the month, some previously shut-down facilities resumed normal production, increasing operating rates and leading to a more relaxed supply of goods. However, downstream factories are still shut down, resulting in weak demand and highlighting market supply-demand contradictions. As a result, the focus of transactions shifted downwards. Most manufacturers still have a certain amount of pending orders, so there is no significant inventory pressure.

In the middle of the month, downstream factories gradually resumed operations, but due to insufficient follow-up orders, production enthusiasm was difficult to effectively increase, causing pressure on the supply side. In addition, the urea market showed weakness, weakening cost support and leading to a continued decline in the melamine market. Influenced by the mentality of buying high and not buying low, many users are only making necessary purchases, adopting a cautious attitude, and showing a wait-and-see sentiment within the industry.

Towards the end of the month, as downstream operations were mostly resumed and demand improved slightly, trading activity increased, with some acceptable orders being received. Therefore, prices were tentatively raised.