Market Review

Recently, the melamine market has continued its downward trend. As of April 14, the benchmark price reported by SunSirs stood at 9,150.00 RMB/ton—a decline of 5.43% compared to the beginning of the week (9,675.00 RMB/ton). Throughout the week, prices remained under general downward pressure, with a daily fluctuation rate of -3.43%. In terms of market performance, a strong wait-and-see sentiment prevailed among participants; coupled with lackluster purchasing enthusiasm from downstream sectors and pressure from the supply side, prices continued to weaken.

Core Driver Analysis

Demand Side: Operating rates in downstream sectors—such as sheet materials and plastics—remain moderate; raw material procurement is driven primarily by essential restocking to meet immediate needs, resulting in insufficient demand support.

Supply Side: Production has resumed at certain facilities following the completion of maintenance shutdowns, leading to an increase in market supply; this, coupled with existing inventory pressures, is further weighing down prices.

Cost Side: Prices for the upstream raw material, urea, have remained relatively stable; consequently, cost-side support is limited and has failed to effectively boost melamine prices. As of April 15, the benchmark price for urea—according to SunSirs—stood at 1,875.00 RMB/ton, representing a 0.54% increase compared to the beginning of the month (1,865.00 RMB/ton).

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