SunSirs: The Market Price of Melamine Increased in December

Price trend

According to the Commodity Market Analysis System of SunSirs, as of December 26th, the average price of melamine enterprises was 7,475.00 RMB/ton, an increase of 2.05% compared to the price on December 1st.

Analysis review

The market price of melamine increased in December. At the beginning of the month, the cost support was still acceptable, with some devices being shut down for maintenance. However, the utilization rate of melamine production capacity was still at a high level, and the demand was flat. Sales of enterprises were under pressure, and some were being sold at a discounted price. With the decline in melamine prices, new market transactions were still acceptable, with a focus on stability and wait-and-see. In the middle of the month, the price of raw material urea fluctuated at a high level, with significant cost support. Downstream hoarding was concentrated towards the end of the year, with active purchasing in the market. Enterprises had sufficient advance orders, and the market atmosphere was relatively stronger. As the end of the month approached, the market for raw material urea was weak, with limited cost impact. The industry's plant operation fluctuated around 60%, and enterprises mainly executed pending orders in an orderly manner. The supply side was tight, and enterprises mostly relied on price support.

According to the commodity market analysis system of SunSirs, the reference price of urea on December 26th was 2,530.00 RMB/ton, a decrease of 2.75% compared to December 1st (2,601.67 RMB/ton).

Market outlook

Melamine analysts from SunSirs believe that the cost impact was not significant, and companies mainly shipped in an orderly manner. The market atmosphere was still good, and it is expected that the melamine market will remain strong in the short term. More attention should be paid to market news guidance.

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