SunSirs: Both Supply and Demand were Weak, and the Melamine Market was Operating Weakly

Price trend

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 July 14th, the benchmark price of melamine in SunSirs was 5,862.50 RMB/ton, a decrease of 0.42% compared to the beginning of this month (5,887.50 RMB/ton).

Analysis review

Downstream demand was sluggish: Downstream industries related to melamine, such as sheet metal and impregnation, saw 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 strong trend, with some manufacturers offering slightly higher prices. The overall market transaction center has shifted upward, but the melamine market has not effectively boosted market demand. As of July 14th, the benchmark price of urea in SunSirs was 1,861.25 RMB/ton, an increase of 2.10% compared to the beginning of this month (1,823.00 RMB/ton).

As of July 14th, 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 is 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 is severe: the export market for melamine is also facing severe challenges. On the one hand, the international market competition is fierce, and Chinese products need to face competition from other countries and regions; On the other hand, the international trade environment is complex and ever-changing, and uncertain factors such as trade barriers and technical barriers may affect the export of melamine.

Market outlook

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.

Low price operation: 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, as of July 14th, 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 inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.