SunSirs: The Supply and Demand Relationship Was Weak, and the Melamine Market Fluctuated Slightly

Price trend

The melamine market has recently faced a predicament of negative factors and sluggish demand, resulting in overall downward pressure. However, in the long term, these negative factors will inevitably have a profound impact on the market. Due to the dual impact of sluggish demand and oversupply, melamine prices were trending downward. As of August 5th, the benchmark price of melamine of SunSirs was 5,812.50 RMB/ton, down 0.21% from 5,825.00 RMB/ton at the beginning of the month.

Analysis review

Weak downstream demand: The operating load of downstream industries related to melamine, such as panels and impregnation industries, had decreased, resulting in an overall insufficient demand for melamine.

The real estate industry, one of the important application areas of melamine, continued to be sluggish, with newly started construction area and development investment continuing to decline, further weakening market demand.

Upstream Raw Material Prices: The domestic urea market remained stable but weaker, with some manufacturers experiencing slight price drops and a downward shift in overall market activity. This lowered melamine production costs but failed to significantly boost market demand. As of August 5th, the benchmark urea price of SunSirs was 1,812.50 RMB/ton, unchanged from the beginning of the month.

As of July 5th, the melamine market was generally weak and stable. Affected by increased supply and weak demand, melamine prices are expected to remain low. In the coming period, with the gradual release of new production capacity and a gradual recovery in downstream demand, the supply and demand relationship in the melamine market is expected to adjust. However, in the short term, the market may still face pressure from oversupply, and the low price trend is unlikely to change.

Inventory backlog: With increased supply and insufficient demand, some companies were experiencing inventory backlogs. This not only increased operating costs but also negatively impact subsequent production and sales.

The export market for melamine faced significant challenges. On the one hand, fierce international competition means Chinese products face competition from other countries and regions. On the other hand, the international trade environment is complex and volatile, and uncertainties such as trade and technical barriers may affect melamine exports.

Future outlook:

Adjustments in supply and demand: With the gradual release of new production capacity and the gradual recovery of downstream demand (although still sluggish as of August 5), the supply and demand relationship in the melamine market is expected to adjust to some extent in the future. However, the market may still face pressure from oversupply in the short term.

Low Prices: Affected by increased supply and weak demand, melamine market prices are expected to remain low. Specific price trends will depend on market dynamics and changes in supply and demand.

In summary, the melamine market was indeed facing a dilemma of negative factors and sluggish demand. However, by strictly controlling production capacity, improving product quality, expanding application areas, and strengthening international cooperation, companies 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.