Last week, the mainstream transaction price of melamine market was at a low level, and the rise was weak. Even some regions or manufacturers still had negative quotations. As of June 11, the benchmark price of melamine in SunSirs was 5900.00 RMB/ton, down 0.84% ​​from the beginning of this month (5950.00 RMB/ton).

Demand side:

Downstream industries such as panels, coatings, and molding materials are affected by the sluggish real estate boom, with insufficient operating rates, and continued weak demand for melamine purchases. Terminal consumption has not seen a significant improvement, which is transmitted to the raw material side. Overseas market demand is also flat, with limited new orders, making it difficult to effectively digest domestic supply. International competitive pressure may also exist.

Cost side:

The price of the main raw material urea has also been in a downward channel recently. The decline in urea prices has reduced the production cost of melamine on the one hand, and weakened the cost support for melamine prices on the other hand, providing room for price declines. As of June 11, the benchmark price of urea in SunSirs was 1,821.67 RMB/ton, down 3.72% from the beginning of this month (1,892.00 RMB/ton).

Supply side:

Although some manufacturers may reduce their load due to losses or maintenance, the overall operating rate of the industry has not experienced a large-scale, long-term decline, and the market supply is relatively stable or even sufficient. The supply pressure has not been effectively alleviated. The social inventory or manufacturer inventory accumulated in the early stage still needs time to digest.

Market performance:

The mentality of buying high and not buying low is dominant, and downstream users and traders are in a wait-and-see mood. They are cautious in purchasing in the market, and mostly purchase small orders on demand, lacking concentrated and large-scale replenishment demand. The market is bearish, which further suppresses trading activity.

On the whole, if there is no sudden positive stimulus (such as unexpected shutdown of major facilities, strong policy stimulus, substantial increase in export orders, etc.), the melamine market will most likely continue to maintain a low-level operation pattern in the short term, with prices mainly fluctuating in a weak direction and extremely limited upward space. It is not ruled out that there may still be a slight decline in some periods or regions due to shipment pressure.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.