SunSirs: Active Transactions Drove Prices Up, Breaking the Consolidation of the Melamine Market

Price trend

The domestic melamine market has been operating steadily recently. As of August 12, the benchmark price of melamine on SunSirs was 5,837.50 RMB/ton, up 0.21% from 5,825.00 RMB/ton at the beginning of the month.

Upstream raw materials continued to weaken

This month, the price of raw material urea has fluctuated downward. As of August 12, the benchmark price of urea on SunSirs was 1,777.50 RMB/ton, a 1.93% decrease from 1,812.50 RMB/ton at the beginning of the month.

From the supply side: urea faced a daily production of nearly 200,000 tons and a high operating rate of 83%, and the inventory was also showing a gradual upward trend.

From the demand side, downstream agricultural demand was sporadic, with distributors nationwide reaching a consensus on slowing restocking. Industrial demand, however, was also weak as terminal compound fertilizer stocking was nearing completion, leading to weaker raw material procurement from factories and a relatively weak overall market.

Insufficient market sentiment support

Despite a price reduction for raw material urea, downstream demand from steel mills has increased, dealers were eager to pay, and market demand was strong, raising optimism among industry players. Most mills have raised prices by around 100 RMB/ton to maintain stable orders. Some companies in southern China have resumed production, focusing on shipments. Average operating rates have increased significantly, remaining above 80%.

Market outlook

In general, the market price of melamine still has room for upward adjustment, but the upward momentum is not large. Downstream demand is sporadic, and the trading atmosphere has generally improved, but the activity is limited. In addition, the current international tariff adjustment has increased the difficulty of melamine export, and the overall market is progressing slowly. Continue to pay attention to the price trend of raw materials and downstream demand in the future.

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