SunSirs: Favorable Factors Were Insufficient, and the Melamine Market Was Operating to Be Weaker

Price trend

The melamine market had limited boost in "Golden September", and the market fell in mid and late September. Entering October, the price of melamine continued to decline. According to the Commodity Market Analysis System of SunSirs, as of October 10th, the average price of melamine enterprises was 7,175.00 RMB/ton, a decrease of 1.37% compared to October 1st and a decrease of 3.37% compared to September 10th.

Analysis review

In terms of raw materials:

According to the analysis system chart of the commodity market of SunSirs, the pre holiday raw material urea market was weaker, and the cost was support was weakened. After the holiday, the urea market remained average, with a cautious attitude towards downstream procurement. The transaction atmosphere had not significantly improved, and the support for the melamine market was limited.

On the supply side:

Before the holiday, melamine maintenance devices were gradually restarted, leading to an increase in market supply. However, after the holiday, companies returned to work and experienced fluctuations. On October 10th, the utilization rate of melamine production capacity was around 63%, indicating sufficient supply and insufficient support for the melamine market.

In terms of demand:

The recent performance of the demand side was poor, with average downstream new orders and insufficient follow-up on melamine. The procurement was mainly on demand. In addition, the price of melamine had fallen after a surge in the early stage, making downstream procurement more cautious. After the holiday, some enterprises' export orders were still acceptable, and downstream inquiries had increased. However, the demand side was still weak, with a strong market wait-and-see atmosphere and insufficient support for the melamine market.

Market outlook

As of October 10th, the atmosphere in the melamine market was relatively weak, and downstream mentality was cautious. The demand side continued to be just in need of procurement, and new orders from enterprises were commonly traded. However, some devices had maintenance plans, which had some support for the market. It is expected that in the short term, the melamine market may be weak and stable, and more attention needs to be paid to cost pressure and changes in enterprise operations.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.