SunSirs: The Supply-demand Contradiction Had Emerged, and the Price of Melamine Fell in March

Price trend

According to the Commodity Market Analysis System of SunSirs, as of March 28th, the average price of melamine enterprises was 7,275.00 RMB/ton, a decrease of 2.68% compared to the price on March 1st.

Analysis review

From the monitoring chart of SunSirs data, it can be seen that the melamine market in March mainly experienced a decline.

At the beginning of the month, the raw material urea experienced a narrow decline, limited cost support, and an industry capacity utilization rate of over 70%. The market supply was sufficient, and downstream demand was released slowly. The atmosphere for new orders in the market was weak, and some companies offered to accept orders.

In the middle of the month, there was insufficient cost support, the industry started at a high level, and downstream demand for additional procurement was not strong. Many people held a wait-and-see attitude, and the market supply and demand contradiction was prominent. The phenomenon of enterprises giving up profits and shipping was obvious.

In late March, there was still a contradiction between supply and demand in the market, and some companies were able to collect orders. The market was cautious in exploring price increases, while downstream follow-up was cautious. The market atmosphere was average, and some companies adjusted prices based on their own situation. The overall market attitude was strong in a wait-and-see manner.

According to the commodity market analysis system of SunSirs, the reference price of urea on March 27th was 2,423.33 RMB/ton, a decrease of 3.84% compared to March 1st (2,520.00 RMB/ton). The raw material urea price in March fell, and the cost faced with weak support from the melamine market.

Market outlook

Melamine analysts from SunSirs believe that short-term cost support may be limited, and the industry's production is still at a high level. Downstream procurement is mainly wait-and-see, and there is currently no obvious positive factor to support the market. It is expected that in the short term, the melamine market will operate steadily with a slightly weaker trend, and more attention should be paid to market news guidance.

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