SunSirs: The Melamine Market Rose First and Then Fell in November

Price trend

According to the Commodity Market Analysis System of SunSirs, as of November 29th, the average price of melamine enterprises was 7,325.00 RMB/ton, an increase of 2.09% compared to the price on November 1st.

Analysis review

The market price of melamine rose first and then fell in November. At the beginning of the month, there was significant cost support, with sufficient pre received orders from enterprises, supporting some companies to raise prices. With the restart of some maintenance equipment, the supply side increased, but downstream markets had insufficient purchasing power. Inquiries and purchases mainly followed up on demand, and the melamine market was operating weakly. In mid month, the price of raw material urea fluctuated at a high level, with average cost support. The utilization rate of melamine production capacity was high, and enterprises mainly executed advance orders. Downstream demand follow-up was average, and market negotiations focused on stability. In late November, cost support was limited, market supply was sufficient, domestic downstream demand was weak, export order support was still acceptable, and enterprises mainly shipped early orders in an orderly manner. The market atmosphere was flat, and the melamine market was stable but weak.

According to the commodity market analysis system of SunSirs, the reference price of urea on November 28th was 2,586.67 RMB/ton, an increase of 2.24% compared to November 1st (2,530.00 RMB/ton).

Market outlook

Melamine analysts from SunSirs believe that the cost support was average, the industry was operating at a high level, and downstream demand following up was not enough. It is expected that the melamine market will operate weakly in the short term, and more attention should be paid to market news guidance.

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