SunSirs: Melamine Market Is Stable at a High Level

Price trend

According to the monitoring sample data of SunSirs, as of March 4, the average quotation price of melamine companies was 8,100 RMB/ton, which was flat compared with the previous trading day, and increased by 7.05% compared with the beginning of the month. Compared with February 4th, it increased by 15.17%, and it increased by 36.52% compared with the same period last year.

Analysis review

Recently, the melamine market has stabilized at a high level after a sharp increase. In terms of raw materials, the current upstream urea prices are generally weak, but support still exists. At present, the supply side is tight, downstream enterprises are gradually recovering, and the market consumption is expected to increase steadily. However, with the high price increase, the downstream is cautious about high prices and mainly purchases on demand. The current melamine market is temporarily stable at a high level.

Urea upstream, the urea market in Shandong fell on March 3. In terms of demand: agricultural demand has started one after another, terminal purchase willingness has gradually increased, and agricultural purchases in mainstream regions have been cautious; downstream compound fertilizer and rubber sheet plants have increased their operating load, and some downstream products are still relatively cautious. Most of them are based on the market, and there is demand potential in the later industry. In terms of supply, the current operating rate of urea companies is about 73%, and the daily output is about 160,000 tons. Manufacturers have little pressure on shipments. With the gradual recovery of logistics and transportation, the inventory accumulated during the festival is also declining.

Market outlook

The melamine analyst of SunSirs believes that the upstream urea price has weakened recently, the cost support has slightly weakened, and the midstream and downstream wait-and-see sentiment has increased. However, the spot supply of the melamine market is tight and the demand on the market is gradually improving. It is expected that in the short term, the melamine market may be mainly operating at a high level, and more attention should be paid to market news guidance for specific trends.

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