SunSirs: Melamine Market Rose Slightly in October

Price trend

According to the monitoring sample data of SunSirs, the average price of melamine of melamine enterprises was 8,266.67 RMB/ton as of October 30, up 0.40% compared with the price on October 1, and  up 14.29% in a three-month cycle.

Analysis review

The melamine market did not change much in October, and it rose slightly overall. After the festival, the price of raw material urea rose slightly, the cost support was improved, the market operation rate was low, and the delivery in some areas was blocked. Some enterprises mainly supplied for export, and the market spot supply was tight, leading to the rise of the market, but the downstream demand follow-up was insufficient, and the procurement was just needed. In the second half of the month, the price of raw material urea fell slightly, and the cost support weakened slightly. Downstream people were resistant to high priced raw materials, and the follow-up of new orders of enterprises was insufficient. The market was mainly stable, some enterprises adjusted their prices and the high-end prices had loosened. The operating rate of melamine increased slightly. Some enterprises were mainly export-oriented, and domestic downstream procurement continued to be just in demand. Near the end of the month, the cost support had improved, but the market atmosphere was weak.

According to the monitoring data of SunSirs, the reference price of upstream urea was 2,506.00 on October 28, a decrease of 1.92% compared with that of October 1 (2,555.00 RMB/ton).

Market outlook

Melamine analysts from SunSirs believe that the current cost side has some support, the market operating rate is at the middle level, the downstream is mainly following up on demand, and the market atmosphere is general. It is expected that the melamine market will be stable in the short term, and more attention should be paid to the market news guidance.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.