Production in Mainland China
Between the late 1990s and early 2000s, both consumption and production of melamine grew considerably in mainland China. By early 2006, melamine production in mainland China is reported to be in "serious surplus". Between 2002 and 2007, while the global melamine price remained stable, a steep increase in the price of urea (feedstock for melamine) has reduced the profitability of melamine manufacturing. Currently, China is the world's largest exporter of melamine, while its domestic consumption still grows by 10% per year. However, reduced profit has already caused other joint melamine ventures to be postponed there.
Surplus melamine has been an adulterant for feedstock and milk in mainland China for several years now because it can make diluted or poor quality material appear to be higher in protein content by elevating the total nitrogen content detected by some simple protein tests. Actions taken in 2008 by the Government of China has reduced the practice of adulteration, with the goal of eliminating it. Court trials began in December 2008 for six people linked to the scandal and ended in January 2009 with two of the convicts being sentenced to death and executed.
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