Price trend
Recently, the domestic melamine market saw a slight upward trend. As of November 25th, the benchmark price of melamine on SunSirs was 5,450.00 RMB/ton, an increase of 0.23% compared to the beginning of the month (5,437.50 RMB/ton). Regionally, Hebei province showed the strongest performance.
Market Analysis
This small-scale but widespread price increase can be mainly attributed to the following reasons:
Cost Side:
The main raw material for melamine is urea. Market data showed that on November 25th, the benchmark price of urea from the business information platform was 1,657.50 RMB/ton, an increase of 3.11% compared to the beginning of the month (1607.50 RMB/ton). The overall market had shown signs of recovery. The stabilization of raw material costs provided some support for melamine prices.
As of November 25, the capacity utilization rate of the melamine industry remained high and fluctuates. This may mean that some companies were tightening their supply in certain areas due to adjustments in equipment or sales strategies, thereby driving up prices in the short term.
Demand Side:
It's important to note that overall demand in the downstream market had not shown significant improvement and remains relatively weak. This made the price increase more of a "catch-up" or "minor rebound" rather than a substantial increase driven by strong demand. Earlier industry analysis indicated that demand from melamine's main downstream sectors (such as engineered wood products) remained relatively weak due to the impact of the real estate industry.
Market outlook
Overall, the melamine market recently saw a slight price rebound, driven by recovering costs and short-term supply adjustments. However, since end-user demand had not fundamentally improved, the overall upward potential of the market may be limited.
In the short term, prices may maintain a volatile but upward trend, but whether they can continue to strengthen in the long term depends on the recovery of downstream demand and the stability of production at various enterprises.
If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.
