SunSirs: Limited Positive News, Melamine Market Continued to Be Weak

Market situation

Recently, the melamine market has indeed faced the dilemma of negative sentiment and sluggish demand, leading to overall downward pressure on the market. However, in the long run, these negative factors will inevitably have a profound impact on the market. Affected by both sluggish demand and oversupply, the market price of melamine was showing a downward trend. As of May 21st, the benchmark price of melamine in SunSirs was 6,012.50 RMB/ton, a decrease of 0.43% compared to last week (6,037.50 RMB/ton).

Analysis review

Downstream demand was sluggish: Downstream industries related to melamine, such as sheet metal and impregnation, had seen a decrease in operating load, resulting in an overall shortage of demand for melamine.

The real estate industry, as one of the important application areas of melamine, continued to be sluggish, with new construction areas and development investments continuing to decline, further weakening market demand.

Upstream raw material prices: The domestic urea market continued to operate in a stable, to stronger trend, with some manufacturers offering slightly higher prices. The overall market transaction center shifted upward, but the melamine market had not effectively boosted market demand. As of May 21st, the benchmark price of urea in SunSirs was 1,930.00 RMB/ton, an increase of 2.93% compared to the beginning of this month (1,875.00 RMB/ton).

As of May 21st, the market atmosphere for melamine was average, and the market was operating weakly and steadily. Affected by the increase in supply and weak demand, the market price of melamine was expected to continue to operate at a low level. In the foreseeable future, with the gradual release of new production capacity and the gradual recovery of downstream demand, the supply and demand relationship in the melamine market is expected to be adjusted. However, in the short term, the market may still face pressure from oversupply, and the trend of low prices is difficult to change.

The export situation was severe: the export market for melamine was also facing severe challenges. On the one hand, the international market competition was fierce, and Chinese products needed to face competition from other countries and regions; On the other hand, the international trade environment was complex and ever-changing, and uncertain factors such as trade barriers and technical barriers may affect the export of melamine.

Future prospects

With the gradual release of new production capacity and the gradual recovery of downstream demand (although currently sluggish), the supply-demand relationship in the melamine market is expected to be adjusted to some extent in the future. However, in the short term, the market may still face pressure from oversupply.

The price was operating at low levels: Affected by the increase in supply and weak demand, the market price of melamine is expected to continue to operate at a low level. The specific price trend still needs to be judged based on market dynamics and changes in supply and demand relationships.

In summary, the melamine market was indeed facing the dilemma of negative sentiment and sluggish demand. However, by strictly controlling production capacity, improving product quality, expanding application areas, and strengthening international cooperation, enterprises can actively respond to market challenges and achieve sustainable development.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.