Market Overview
This week, the trading atmosphere in the melamine market was cold, and the price continued to decline weakly, but the decline has slowed down. Although it rose yesterday, the magnitude was not significant. As of October 25th, the benchmark price of melamine in Shengyi Society was 6712.50 yuan/ton, a decrease of -0.37% compared to the beginning of this month (6737.50 yuan/ton).
Supply side
Recently, the overall price of urea in the domestic market has remained stable, with some factories in certain regions slightly raising their prices. In mainstream regions, there have been a certain number of transactions at the low-end price of urea enterprises, with an increase of 10-30 yuan/ton. On October 25th, the benchmark price of urea in Shengyi Society was 2175.00 yuan/ton, an increase of 0.83% compared to the beginning of this month (2157.00 yuan/ton). At present, the low-end transactions in the domestic urea market have slightly improved, and downstream merchants are purchasing in moderation at low prices. High price transactions are still weak, and the overall transaction situation is still weak, with a slightly stagnant market atmosphere.
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, China’s melamine production was 27500 tons, an increase of 12.70% 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
The progress of the melamine market is average, with slow recovery of early maintenance equipment and lower than expected increase in supply, supporting the sentiment of manufacturers. Prices have slightly increased. However, in the long run, with the gradual recovery of supply and the release of new production capacity last month, the melamine market is not favorable enough, and prices may still decline. However, considering the high cost, it is expected that the overall decline will be limited.
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