Market Overview
| Gamma-PGA (gamma polyglutamic acid) |
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 Shengyi Society is 6800.00 yuan/ton, a decrease of -0.37% compared to the beginning of this month (6825.00 yuan/ton). Manufacturers mainly focus 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.
Supply side
The downward trend of domestic urea prices is expanding! The mainstream market prices have all fallen across the board, with drops ranging from 30-60 yuan/ton! At present, the mainstream low-end factory price is 2020-2030 yuan/ton, which has 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, we need to observe and wait in the near future, especially paying attention to the volume of low-priced transactions.
In terms of demand
Recently, the melamine market has cooled down, and demand has been moderately followed 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 have reduced their demand for melamine procurement.
This week’s melamine production was 30800 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.
Overall
Cost side support still exists, and there are 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 6100-6400 yuan/ton. Attention should be paid to new news changes such as factory start-up adjustments and demand follow-up.
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