Price trend:

According to data from SunSirs as of July 6, the melamine market remained sluggish this week; prices trended downward amidst fluctuations, and overall market performance was weak. On July 7, the benchmark price for melamine quoted by SunSirs stood at 6,037.50 RMB/ton, representing a monthly decline of 0.21% compared to the price of 6,050.00 RMB/ton at the beginning of July.

Upstream raw material: Urea prices weakened in tandem, and cost support was insufficient

Urea, the key raw material for melamine, also followed a downward trend this week; the benchmark price stood at 1,802.50 RMB/ton on July 7, a 0.62% drop from the 1,813.75 RMB/ton recorded at the beginning of the month. The continued decline in raw material prices failed to provide cost support for melamine. With upstream costs easing and production costs falling, manufacturers showed a greater willingness to offer price concessions to move stock, further limiting the potential for a rebound in melamine prices.

Market Outlook

The spread for melamine remains negative, and the downward trend has yet to reverse; while prices are hovering at cyclical lows, support remains weak. Compounded by the continued decline in upstream urea costs, the market is unlikely to shake off its sluggishness in the short term. The market remains locked in a stalemate at low levels; barring any unexpected positive news, prices are likely to continue trading weakly within a narrow range, as no signals of a rebound have yet emerged.

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