Price trend

The domestic melamine market was experiencing a narrow range of consolidation. As of October 28th, the benchmark price of melamine on SunSirs was 5,450.00 RMB/ton, down 1.8% from 5,550.00 RMB/ton at the beginning of the month. Raw material costs and supply provided some support, but weak downstream demand was the main factor restraining market development.

Analysis review 

Overall: The market was characterized by a supply-demand stalemate. On the one hand, the price of raw material urea rose at the beginning of this week. As of October 28th, the benchmark price of urea on SunSirs was 1,625.00 RMB/ton, up 0.23% from 1,621.25 RMB/ton at the beginning of the month, providing support for melamine costs. On the other hand, downstream factories were not very enthusiastic about purchasing, and demand remained sluggish, making it difficult for market prices to rise significantly.

Manufactures Dynamics: The data showed diverging pricing strategies across different companies. This reflected that in the market environment as of October 28, companies were flexibly adjusting prices based on their inventory, orders, and location, and a unified upward or downward trend had yet to emerge.

Supply side: Pay attention to the operation status of each enterprise. Data showed that the weekly operation rate of the industry was expected to increase slightly, which may increase market supply.

Demand: Downstream purchasing conditions were key to determining price stability. If demand continues to weaken, the market will struggle to break out of its consolidation phase.

Market outlook

It is expected that the melamine market will continue to maintain a stable and consolidating trend in the short term. The key to the market trend still lies in the changes in both supply and demand.

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