SunSirs: Demand is Sluggish and the Melamine Market Continues to be Weak

Market situation

Recently, the melamine market is indeed facing the dilemma of negative factors and sluggish demand, which has led to the 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 the dual influence of sluggish demand and oversupply, the market price of melamine has shown a downward trend. As of May 26, the benchmark price of melamine in the Sino-Sino melamine was 5975.00 RMB/ton, a decrease of -1.01% compared with last week (6025.50 RMB/ton).

Downstream demand is weak: the operating load of downstream industries related to melamine, such as panels and impregnation industries, has decreased, resulting in an overall insufficient demand for melamine.

As one of the important application areas of melamine, the real estate industry has continued to be sluggish, and the newly started area and development investment have continued to decline, further weakening market demand.

Upstream raw material prices: The domestic urea market continued to be stable but weak, and some manufacturers' quotations were slightly lowered, and the overall market transaction center of gravity shifted downward. As of May 26, the benchmark price of urea in Sino-Sino was 1930.00 RMB/ton, down 2.30% from the beginning of this month (1946.00 RMB/ton).

At present, the market atmosphere of melamine is general, and the market is weak and stable. Affected by the increase in supply and weak demand, the market price of melamine is expected to continue to remain low. In the future, with the gradual release of new production capacity and the gradual recovery of downstream demand, the supply and demand relationship of the melamine market is expected to be adjusted. However, in the short term, the market may still face the pressure of oversupply, and the trend of low prices is difficult to change.

The export situation is severe: The export market of melamine also faces severe challenges. On the one hand, the international market is highly competitive, and Chinese products need to face competition from other countries and regions; on the other hand, the international trade environment is complex and changeable, and uncertain factors such as trade barriers and technical barriers may affect the export of melamine.

Future Outlook

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

Low price operation: Affected by the increase in supply and weak demand, the market price of melamine is expected to continue to remain low. The specific price trend still needs to be judged according to the market dynamics and changes in the supply and demand relationship.

In summary, the current melamine market is indeed facing the dilemma of negative factors and sluggish demand. However, through strategies such as strict control of 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.