SunSirs: Melamine Prices Rose in August, the Market Sentiment Was Weak at the End of the Month

Price trend

According to the monitoring sample data of SunSirs, as of August 29, the average price of melamine enterprises was 8,466.67 RMB/ton, an increase of 17.05% compared with the price on August 1, and a decrease of 16.17% in a three-month cycle.

Analysis review

The melamine market rose in August, and the market sentiment was sluggish near the end of the month. In early August, the price of raw material urea fell, and the cost support was general. The melamine market operating rate fell to a low level, but the terminal operating rate was sluggish, the procurement was mainly on demand, and the focus of market discussions was stable. In the middle and late ten days, the price of raw material urea rose slightly, and the cost support was strengthened. Enterprises in some areas stopped or reduced production, and the market supply was reduced, which supported the rise of the market, but the downstream demand was flat, and the market mentality was still cautious. Near the end of the month, the operating rate of melamine was expected to increase, but the downstream demand was still light, and the melamine market was stable and weak.

Upstream urea, the domestic urea market rose on August 29. On August 26, the reference price of urea was 2,394.00 RMB/ton, a decrease of 0.58% compared with August 1 (2,408.00 RMB/ton).

Market outlook

The melamine analyst of SunSirs believes that the current raw material urea market is relatively strong, and the cost side has certain support. The market supply is expected to increase, but the demand side is flat, and the enthusiasm for downstream purchases is general. It is expected that in the short term, the melamine market may run under pressure, and more attention should be paid to market news guidelines.

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