Price trend                               

This week, the domestic melamine market experienced a weak downward trend, and the fundamentals showed weakness. According to the Commodity Market Analysis System of SunSirs, as of September 24th, the reference price of melamine was 6,762.50 RMB/ton, a decrease of 0.18% compared to September 1st (6,775.00 RMB/ton). Mainly supported by low-priced orders in the early stage. Overall, the fundamentals were weak, and the trading atmosphere in the melamine market was average.

Analysis review

Supply side

This week, with the recovery of previous maintenance equipment and the gradual production of new capacity, the national urea market was expected to continue to increase in daily output and future market. Enterprise inventory wads also accumulating, and the supply side continued to be loose, leading to increasing pressure.

According to the Commodity Market Analysis System of SunSirs, as of September 25th, the benchmark price of SunSirs' urea was 2,145.00 RMB/ton a decrease of 1.29% compared to the beginning of this month (2,173.00 RMB/ton).

In terms of demand

The melamine market had recently cooled down, and from the perspective of demand and raw materials, the market had weak positive news and insufficient demand follow-up. It is reported that some sheet metal factories have recently reduced their operating load, and considering that the supply of melamine will increase in the later maintenance and restoration of multiple factories, downstream manufacturers and traders reduced their demand for melamine procurement.

Market outlook

Overall, the decrease in local production capacity utilization rate of melamine had provided support for the market, but there was insufficient demand and favorable raw material conditions. The overall market atmosphere was average, and it is expected that short-term market conditions will mainly fluctuate steadily. In the long run, the market lacks guiding factors and may mainly follow the market trend.

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