Price trend

According to the Commodity Market Analysis System of SunSirs, as of May 29th, the average price of melamine from enterprises was 7,325.00 RMB/ton, a decrease of 2.98% compared to May 1st.

Analysis review

The melamine market slightly declined in May. In the first half of the month, the price of raw material urea fluctuated and fell, the cost support weakened, some maintenance devices resumed production, the industry's operating rate increased, and downstream demand did not significantly improve. Inquiry procurement was mainly based on demand, and the market atmosphere was weak. The melamine market was operating in a weak position. In the second half of the month, the price of raw material urea was weak, with insufficient cost support. The utilization rate of melamine production capacity decreased, and the market supply decreased. However, downstream demand was poor, and there was still a supply-demand contradiction in the market. The mentality of the industry was insufficient, mainly replenished on demand. Enterprise sales were under pressure, and the focus of negotiations in the melamine market slightly declined.

Upstream urea, according to the Commodity Market Analysis System of SunSirs, the reference price of urea on May 26th was 2,447.50 RMB/ton, a decrease of 6.36% compared to May 1st (2,613.75 RMB/ton).

Market outlook

Melamine analysts from SunSirs believe that as of the 29th, the price of raw material urea had decreased, cost support was weak and supply gradually increased. However, the demand side had limited follow-up, and it is expected that in the short term, the melamine market may be weak and consolidated. More attention needs to be paid to market news guidance.

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