Price trend
According to the Commodity Market Analysis System of SunSirs, as of May 29th, the average price of melamine enterprises was 7,000.00 RMB/ton, a decrease of 0.36% compared to the price on May 1st.
Analysis review
The market price of melamine fluctuated slightly in May. In the first half of the year, the market supply was sufficient, but downstream production was low. Small orders mainly followed up on demand, and new business transactions were lukewarm. The market atmosphere was weak, but the price of raw material urea rose, cost pressure rose, and manufacturers had weak intentions to sell at low prices. The market remained stable and under pressure. In the middle and late stages, the price of raw material urea continued to rise, and cost pressure continued to increase. Some export orders were still supported, supporting enterprises to raise prices. Approaching the end of the month, cost pressure still existed, but domestic downstream demand was weak, the transactions at high prices were weak, and the market was showing signs of weakness.
According to the commodity market analysis system of SunSirs, the reference price of urea on May 28th was 2,494.17 RMB/ton, an increase of 2.4% compared to May 1st (2,435.83 RMB/ton). The urea raw material market showed a stronger trend in May, with significant cost pressure on melamine.
Market outlook
SunSirs' melamine analyst believes that the sluggish domestic downstream demand in the melamine market was dragging down the market, and there may still be no significant improvement in demand in the short term, which may still have constraints on the market. But the price of raw material urea was high, and the cost of melamine was under pressure, with manufacturers mainly raising prices. It is expected that in the short term, the cost demand game may continue, and the melamine market situation may remain slightly weak. More attention needs to be paid to market news guidance.
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