Price Trends

The melamine market remained sluggish this week, with prices continuing to trend weakly. According to data from SunSirs, the benchmark price for melamine stood at 6,087.50 RMB/ton as of June 10—a 0.61% decrease from the beginning of the month (6,125.00 RMB/ton)—amid subdued market trading activity.

Cost side: Weak support

Recently, urea prices—the raw material for melamine—have remained generally stable, with slight declines in some regions; consequently, production costs offer limited support for current price levels. Meanwhile, the industry's operating rate remains at a medium-to-high level, and some previously idled units have resumed production. Market supply-side pressure persists, and the cost side has failed to provide an effective price floor. As of June 10, the benchmark price for urea tracked by SunSirs stood at 1,812.50 RMB/ton, a decrease of 0.41% compared to the beginning of the month (1,820.00 RMB/ton).

Supply and Demand: Weak Demand Dominated

On the supply side, operating rates among domestic melamine producers remain generally high, ensuring ample market supply, though some enterprises are facing a buildup of inventory pressure. On the demand side, downstream sectors such as panel manufacturing and coatings have entered their traditional off-season; with insufficient end-market orders, purchasing is largely limited to immediate needs, and there is a lack of significant restocking activity. Consequently, weak demand is the dominant factor shaping the current sluggish market climate amidst the interplay of supply and demand.

Market Outlook

In the short term, the melamine market lacks clear upward momentum, and prices are likely to continue fluctuating at low levels. Key factors to monitor include the impact of urea price fluctuations on production costs and signals of marginal demand improvement resulting from changes in operating rates within downstream industries.

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