Price trend

The melamine market was weak in early April. According to the Commodity Market Analysis System of SunSirs, as of April 10th, the average price of melamine enterprises was 7,025.00 RMB/ton, a decrease of 3.44% compared to April 1st (the reference price of melamine was 7,275.00 RMB/ton).

Price influencing factors:

Cost side: According to the analysis system chart of the commodity market of SunSirs, after entering April, the price of raw material urea had rebounded slightly, but there was still insufficient support for the melamine market. On April 10th, the reference price of urea was 2,394.17 RMB/ton, a decrease of 0.86% compared to April 1st (2,415.00 RMB/ton).

Supply and demand side: Since April, the operating rate of the melamine industry had slightly decreased, but the market supply of goods was abundant, and some enterprises had accumulated inventory. The downstream board industry was operating at a low level, and manufacturers had a cautious purchasing attitude, with a focus on using and purchasing as needed mode. The overall downstream demand follow-up was slow, and transactions continued to be in high demand, resulting in a weak market atmosphere.

Market outlook

Under the influence of the recent pattern of strong supply and weak demand in the melamine market, the market was operating weakly. It is expected that the supply side will remain at a high level in the later stage, and the support from the demand side may still be insufficient, putting pressure on fundamental supply and demand. As of April 10th, the raw material urea had slightly increased, but the short-term support for the melamine market is relatively limited. In summary, it is expected that the melamine market will continue to operate weakly in the short term, and more attention still needs to be paid to changes in the price of raw material urea.

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