Starting July 1, the export tax rebate for domestic melamine was cut from 13% to 5%. This policy change coincided with a general rise in export quotations for melamine in July. Most offshore export prices now range between $1,030 and $1,090 per ton. This is a significant increase compared to June, when prices were about $100–$140 lower before the tax adjustment. As a result, the additional costs caused by the reduced tax rebate are now fully passed on to importers, which is quite unusual in the current market. Typically, the added costs from such changes are either shared between exporters and importers or absorbed entirely by the exporter.
So why is the melamine export so strong? There are two main reasons.
First, there's strong international demand. The downstream industries are performing well, leading to active trading in the near-term melamine market. Supply has tightened, pushing up prices. In Europe, contract prices for melamine are currently between €1,115 and €1,205, up 30 euros from early July. In the U.S., prices range from $1,546 to $1,657, an increase of $69 to $92 compared to June. Even in Southeast Asia, CIF prices have risen by $20, reaching $1,090 to $1,130. The industry outlook remains positive.
Second, China holds a strong position in the global melamine market. Although the country started producing melamine later than some other regions, it developed rapidly. Production increased from 130,000 tons in 2001 to over 400,000 tons in 2006, with an average annual growth rate of 20%. Meanwhile, demand for melamine has grown at 10% to 20% annually. This year’s demand is expected to reach around 300,000 tons.
China exports 20% to 40% of its annual melamine production, mainly to Europe, the Americas, Asia, and Australia. Since the start of this year, monthly exports have exceeded 10,000 tons. By May, cumulative exports had surged by 114% compared to the same period last year, totaling 62,000 tons—the highest on record. As a key supplier in the global market, China significantly influences international pricing and supply dynamics.
Currently, China leads in melamine production capacity, market demand, and export volume. With rising natural gas and energy prices, many overseas producers have scaled back or shut down due to high costs. However, China benefits from relatively low urea prices, allowing new large-scale facilities to be built and output to grow quickly. Domestically, China remains one of the fastest-growing markets for melamine demand. Its export volumes continue to rise, accounting for roughly 10% of global demand and playing a decisive role in shaping international market trends.
Looking ahead, China's dominance in the global melamine sector is likely to become even more pronounced.
Suzhou Industrial Park Hojama Technology Co., Ltd , https://www.hojamax.com