Price trend
The overall melamine market showed an upward trend in March. According to the monitoring sample data of SunSirs, as of March 31, the average price of melamine companies quoted was 8,716.67 RMB/ton, an increase of 15.20% compared with the price on March 1, and an increase of 19.95% in a three-month cycle. Compared with the same period last year, it has increased by 62.42%.
Analysis review
In the first ten days of March, the supply of manufacturers was tight, downstream companies started to gradually recover, demand gradually improved, and prices rose. However, as prices rose to high levels, downstream manufacturers were cautious about high prices and focused on purchasing on demand, and market was stable mainly. In mid-March, the market’s new order transaction atmosphere was weak, sales were under pressure, and the market was weak. In late March, due to the good export, the price of raw material urea increased, coupled with the multiple support of downstream replenishment demand, there was a strong atmosphere in the market to adjust upward, and the market went up strongly.
Upstream urea, the ex-factory price of urea in Shandong in March 2021 first fell and then rose. The average ex-factory price quoted by mainstream urea manufacturers in Shandong in March dropped from 2,183.33 RMB/ton at the beginning of the month to 2,070.00 RMB/ton on March 15th, a decrease of 5.19%, and then rose to 2170.00 RMB/ton on March 31, an increase of 4.83%.Overall, the urea market in Shandong fell slightly in March.
Market outlook
SunSirs melamine analysts believe that after entering April, upstream urea prices have fallen and cost support is slightly weaker, but manufacturers are able to sell goods under the support of advance orders. It is expected that in the short term, the domestic melamine market may be running at a high level. The specific trend requires more attention to changes in raw material prices and market news guidance.
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