SunSirs: In October, the Melamine Market Saw Significant Stability and Slight Fluctuations

Price trend

According to the Commodity Market Analysis System of the SunSirs, as of October 31, the average price of melamine enterprises was 7,175.00 RMB/ton, a decrease of 1.37% compared to the price on October 1.

Analysis review

In October, the market price of melamine remained stable with minor fluctuations. After the Double Festival, the raw material urea market is operating weakly, with limited support for the melamine market. The industry's production capacity utilization rate is around 63%, and the supply side is sufficient, while the demand side performance is poor. Downstream new orders are average, with only basic procurement being the main focus. The market mentality is cautious, and the melamine market is operating weakly. The cost support in the second half of the month is still acceptable, with some devices on the supply side fluctuating. Enterprises mainly execute preliminary orders, while some export orders are good. Enterprises have a strong willingness to increase prices, but domestic downstream demand is generally followed up, and market transactions are mainly in demand. Holders ship according to the market, and enterprise quotations are mostly stable and wait-and-see.

Upstream urea, according to the Commodity Market Analysis System of the SunSirs, the reference price for urea on October 30th was 2,556.67 RMB/ton, an increase of 0.07% compared to October 1st (2,555.00 RMB/ton).

Market outlook

Melamine analysts from the SunSirs believe that as of October 31, cost support is strong, downstream inquiries and purchases are followed up as needed, and the market trading atmosphere is still good. It is expected that in the short term, the melamine market situation may be on the sidelines, and more attention needs to be paid to changes in cost and supply.

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