SunSirs: Poor Demand Led to a Decline in Melamine Prices

Price trend

According to the Commodity Market Analysis System of SunSirs, as of April 2nd, the average price of melamine enterprises was 7,025.00 RMB/ton, a decrease of 4.42% compared to March 21st (the reference price of melamine was 7,350.00 yuan).

Analysis review

The recent decline in the melamine market was mainly due to poor demand and insufficient cost support. Some companies were offering discounts for sales, leading to a decline in the focus of negotiations in the melamine market. On April 2nd, the mainstream ex factory price reference for melamine in the East China market was around 6,500-6,650 RMB/ton, with actual orders mainly negotiated.

Cost side: Supply exceeded demand, and the mainstream ex factory price of urea in Shandong slightly decreased in March. Entering April, the market continued its downward trend. According to the analysis system chart of the commodity market of SunSirs, the reference price of urea on April 2nd was 2,393.33 RMB/ton, a decrease of 0.9% compared to April 1st (2,415.00 RMB/ton), which provided weak support for the melamine market.

Supply and demand side: Recently, some devices had been shut down, and the industry's capacity utilization rate had decreased. However, the supply side was still sufficient, and domestic downstream demand was flat. The main focus was on following up on rigid demand, with a cautious purchasing attitude. The market transaction atmosphere was light, and enterprise shipments were under pressure. The support for supply and demand side was weak.

Market outlook

The melamine market was operating weakly, and the short-term supply-demand contradiction in the market may continue. Holders were actively shipping, and it is expected that the melamine market will continue to operate weakly in the short term. The specific trend still needs to pay attention to market news guidance.

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