1、 Overview of Market Status
Recently, the melamine market has indeed faced the dilemma of negative sentiment and sluggish demand, leading to overall downward pressure on the market. However, in the long run, these negative factors will inevitably have a profound impact on the market. The following is an analysis of the current market situation of melamine:
2、 Negative factor analysis
Low demand:
The downstream industries associated with melamine, such as sheet metal and impregnation, have experienced a decrease in operating load, resulting in an overall shortage of demand for melamine.
The real estate industry, as one of the important application areas of melamine, continues to be sluggish, with new construction areas and development investments continuing to decline, further weakening market demand.
Supply surplus:
The gradual release of new production capacity has led to a significant increase in market supply.
Some melamine plants that were previously shut down due to maintenance have resumed production, exacerbating the supply pressure on the market.
Upstream raw material prices have decreased:
The domestic urea market continues to operate in a stable to weak trend, with some manufacturers experiencing a slight decrease in quotes and the overall market transaction center shifting downwards. This has reduced the production cost of melamine, but has not effectively boosted market demand. As of November 26th, the benchmark price of urea in Shengyi Society was 1981.25 yuan/ton, a decrease of -9.74% compared to the beginning of this month (2195.00 yuan/ton).
3、 Signs of market changes
Although the market may not show significant changes in the short term, the following signs indicate the current market situation:
Price downward trend:
Affected by both sluggish demand and oversupply, the market price of melamine is showing a downward trend. As of November 26th, the benchmark price of melamine in Shengyi Society was 6445.00 yuan/ton, a decrease of -5.06% compared to the beginning of this month (6687.50 yuan/ton).
Inventory backlog:
With the increase in supply and insufficient demand, some companies have started to accumulate inventory. This not only increases the operating costs of the enterprise, but may also have adverse effects on subsequent production and sales.
4、 Future prospects
Adjustment of supply and demand relationship:
With the gradual release of new production capacity and the gradual recovery of downstream demand (although currently sluggish), the supply-demand relationship in the melamine market is expected to be adjusted to some extent in the future. However, in the short term, the market may still face pressure from oversupply.
Low price operation:
Affected by the increase in supply and weak demand, the market price of melamine is expected to continue to operate at a low level. The specific price trend still needs to be judged based on market dynamics and changes in supply and demand relationships.
5、 Suggestions and Strategies
Pay close attention to market trends:
Enterprises should closely monitor market dynamics and changes in supply and demand relationships in order to flexibly respond to market challenges and seek development opportunities.
Optimize production strategy:
Optimize production strategies based on market demand and supply conditions to avoid inventory buildup caused by overproduction.
Expand application areas:
Actively expanding the application areas of melamine to broaden market demand channels and enhance product added value.
Strengthening international cooperation:
Strengthen cooperation and communication with the international market, understand the dynamic demand of the international market, actively explore the international market to increase export volume.
In summary, the current melamine market is indeed facing the dilemma of negative sentiment and sluggish demand. However, by strictly controlling production capacity, improving product quality, expanding application areas, and strengthening international cooperation, enterprises can actively respond to market challenges and achieve sustainable development.
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