Price trend

The market price of melamine fell in April. According to the Commodity Market Analysis System of SunSirs, as of April 28th, the average price of melamine enterprises was 7,025.00 RMB/ton, a decrease of 3.44% compared to the price on April 1st.

Analysis review

At the beginning of the month, the price of raw material urea fell, cost support weakened, and the industry's capacity utilization rate was around 70%. The supply side was sufficient, and domestic downstream demand was flat. The downstream board industry started at a low level, and manufacturers had a cautious purchasing mentality, with a focus on the on-demand procurement model. Supply and demand conflicts dragged down the price of melamine.

In the middle of the month, the price of raw material urea increased, and the cost support increased. In addition, some units were shut down for maintenance, resulting in a slight decline in production capacity utilization, supporting the market's upward trend. It was still possible for downstream buyers to choose lower positions to replenish their positions, but follow-up on buying high priced raw materials was still weak. The overall market transaction continued to be in high demand, and enterprises often adjusted their quotations flexibly according to their own situation. The focus of melamine negotiations was stable and consolidating.

In late April, there was some support on the cost side, and downstream demand for pre holiday stocking was strong. The market performance was average, and there was a strong wait-and-see atmosphere.

According to the commodity market analysis system of SunSirs, the reference price of urea on April 26th was 2,430.83 RMB/ton, an increase of 0.66% compared to April 1st (2,415.00 RMB/ton). In April, the price of raw material urea first fell and then rose, which boosted the support for the melamine market in the middle and late stages.

Market outlook

Melamine analysts from SunSirs believe that the price of raw material urea was relatively strong, and the cost support was still acceptable. Enterprises were mainly executing pending orders in an orderly manner, and the market was observing and operating before the holiday. It is expected that the melamine market will remain stable in the short term, and more attention needs to be paid to changes in the supply side.

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