Price trend

This week, the trading atmosphere in the melamine market was cold, and prices continued to decline weakly, but the decline has slowed down to some extent. As of the time of writing, the benchmark price of melamine in SunSirs was 6,800.00 RMB/ton, a decrease of 0.37% compared to the beginning of this month (6,825.00 RMB/ton). Manufacturers mainly focused on executing advance orders, with weak willingness to adjust prices. In the short term, there is a lack of guidance in the market, and the market situation appears to be stagnant. Next week, due to the increase in production enterprises and the lack of expected improvement in downstream demand, prices may continue to remain weak.

Analysis review

Supply side

The downward trend of domestic urea prices was expanding! The mainstream market prices had all fallen across the board, with drops ranging from 30-60 RMB/ton! As of August 8th, the mainstream low-end factory price was 2,020-2,030 RMB/ton, which had fallen below the level of late July. There is a probability that low-end transactions will increase, but if the market stabilizes, more transactions from more companies are needed. Therefore, it’s needed to be observed and waited in the near future, especially paying attention to the volume of low-priced transactions.

In terms of demand

Recently, the melamine market had cooled down, and demand had moderately followed up. It is reported that some sheet metal factories had recently reduced their operating load, and considering that the supply of melamine would increase in the later maintenance and restoration of multiple factories, downstream manufacturers and traders had reduced their demand for melamine procurement.

This week's melamine production was 30,800 tons, a decrease of 2.22% compared to last week. Next week, some maintenance facilities in Anhui, Shandong, and Sichuan will gradually resume shipments, and the supply of melamine may increase.

Market outlook

Cost side support still existed, and there were certain favorable factors in supply and demand. It is expected that the melamine market will continue to decline in the short term, with a price range of 6,100-6,400 RMB/ton. Attention should be paid to new news changes such as factory start-up adjustments and demand follow-up.

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