SunSirs: Weak Demand, the Melamine Market Was Fluctuating

Market Overview

The market atmosphere for melamine this week was average, and overall, the fundamentals were weak. As of August 20th, the benchmark price of melamine in SunSirs was 6,750.00 RMB/ton, a decrease of 1.10% compared to the beginning of this month (6,825.00 RMB/ton). Manufacturers mainly focused on executing advance orders, with weak willingness to adjust prices. In the short term, there is a lack of guidance in the market, and the market situation appears to be stagnant. Next week, due to the increase in production enterprises and the lack of expected improvement in downstream demand, prices may continue to remain weak.

Only Jinhe Phase 2 (scheduled to shut down at the end of July), Xinjiang Xinlianxin (shut down), and Meifeng (postponed to the end of the month) had major maintenance plans in August. The rest of the enterprise installations are short-term shutdowns and have little impact on the market.

Analysis review

Supply side

Since August, the raw material urea market has been lukewarm, and the recent market performance is still dominated by a one week market cycle. When the demand side weakened, the maintenance plans of large factories temporarily put the supply side at a low level, and both supply and demand had weakened, maintaining a narrow adjustment of the urea market. As of August 20th, the benchmark price of urea in SunSirs was 2,263.00 RMB/ton, a decrease of 2.50% compared to the beginning of this month (2,321.00 RMB/ton).

Demand side

Recently, the melamine market has cooled down, and demand has moderately followed up. It is reported that some sheet metal factories have recently reduced their operating load, and considering that the supply of melamine will increase in the later maintenance and restoration of multiple factories, downstream manufacturers and traders have reduced their demand for melamine procurement.

In July, imported 10.642 tons of melamine, a month on month decrease of 38.99%, with a total import price of 442,930 RMB; Exported 34,400 tons, a month on month decrease of 36.76%, with a total export price of 210,714,605 RMB.

Market outlook

Overall, the positive news for the melamine market was limited, and the market may remain stagnant. It is expected that the demand for melamine in the short term will improve, and the price range may be between 6,200-6,500 RMB/ton. Attention should be paid to new news changes such as factory start-up adjustments and demand follow-up.

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