SunSirs: The Melamine Market Was Mainly Stable, and the Atmosphere Was Average

Price trend

This week, the price of melamine in the market had remained stable, with some regions showing signs of weakness, and the overall trading atmosphere in the market was average. According to the Commodity Market Analysis System of SunSirs, as of May 11th, the average price of melamine enterprises was 7,025.00 RMB/ton, which was basically unchanged compared to Monday's price.

Price influencing factors:

Cost side:

According to the commodity market analysis system of SunSirs, the reference price for urea on May 10th was 2,452.50 RMB/ton, an increase of 0.68% compared to May 1st (2,435.83 RMB/ton). Since May, the price of raw material urea has risen, and the cost pressure of melamine has increased. Manufacturers have shown weak intentions to lower prices.

Supply and demand side:

The industry's production capacity utilization rate was around 70%, with sufficient supply and low downstream production. The intention to purchase raw materials was not high, and small orders were mainly following up on demand. New orders from enterprises were not successful, and the market atmosphere was average. Under the drag of supply and demand, the melamine market was operating under pressure.

Market outlook

Melamine analysts from SunSirs believe that in recent times, the price of raw material urea has been running strong, with high costs. In addition, some companies have decent support for export orders, and their willingness to give up profits was low. However, the supply and demand structure may still have some negative effects on the market. Companies may experience poor shipments at high levels, and their mentality was under pressure. It is expected that the melamine market will operate weakly and steadily in the short term, 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.