Price trend

This week, there was still no significant improvement in the trading atmosphere of the domestic melamine market. Recently, there have been tentative increases in quotes from various enterprises, but in reality, there has been no significant improvement in the atmosphere, and manufacturers were still mainly selling goods based on previous orders.

Analysis review

As can be seen from the above chart, the domestic melamine market has been in a weak downward trend since July, especially with low-priced goods continuously impacting the domestic market in Xinjiang. With the improvement of enterprise acquisition, the willingness of enterprises in Xinjiang to raise prices has increased, and prices have begun to rebound slightly. Although there has been a slight rebound in enterprise quotations this week, there was still room for negotiation in actual transactions, and the market trading atmosphere has slightly improved. Downstream companies have followed up appropriately, but the overall atmosphere has not changed much. Some companies in certain regions still wanted to tentatively raise prices to stimulate market trading atmosphere and facilitate traders' purchases. From the terminal perspective, enterprises had low purchasing willingness, low operating rates, and weak ability to digest goods. Even if they made purchases, some enterprises were not in a hurry to pick up the goods.

Recently, the utilization rate of melamine production capacity in China has started to decline slightly. Although some facilities have been shut down for maintenance, the time was not concentrated, so the utilization rate of production capacity is still at a high level. Last weekend, with the maintenance of some facilities in Xinjiang and Henan, the utilization rate of melamine production capacity dropped to the lowest point of the month.

In terms of demand, the performance was also not optimistic, and the main demand for melamine was related to the real estate industry. The terminal demand had not shown significant improvement for a long time, and the high inventory of finished products in downstream sheet metal factories was restricting their production. Most enterprises focus on maintaining production without stopping, and the procurement cycle for raw material melamine had become longer and on-demand, making it difficult to boost the market.

Market outlook

Overall, recently melamine companies have mainly focused on executing advance orders. The market trend in the later stage still needed to be observed. If there is no improvement in recent market trading, it cannot be ruled out that the market may continue to decline under inventory pressure from manufacturers.

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