Chengdu Yulong Chemical has taken its melamine plant in Chengdu, Sichuan, offline as of August 4, 2025, the company confirmed, cessation follows the initiation of maintenance activities at the facility. Further details on the expected duration of the outage remain undisclosed, according to a Polymerduniya-based industry source..
The Sichuan-based plant, designed with an annual production capacity of approximately 50,000 metric tons, is a notable contributor to China’s regional melamine output. The shutdown is expected to temporarily reduce supply, though the full impact hinges on the availability of alternative output from nearby producers.
While no formal commentary has been issued regarding anticipated restart timing, market analysts suggest the outage may align with industry strategy to consolidate production during seasonal downstream slowdowns. Notably, melamine has faced ongoing pressure globally throughout early 2025, as weak demand from laminates, boards, and coatings sectors, along with ample inventories, limited pricing support for the nitrile-based chemical in China and elsewhere.
At present, China melamine markets are characterized by cautious sentiment and lower contract trading volumes. As upstream urea feedstock costs remain subdued and downstream activity lags, the timing of this maintenance window may further weigh on regional pricing dynamics.
Analysts will be closely watching market updates for news of a resumption in operations. Once the duration of the outage becomes clear, stakeholders, including resin producers and monetization planners, may need to reassess inventory strategies and supply continuity planning accordingly.
