1、 Price trend
Recently, the melamine market has been under pressure, with prices continuing to decline. On December 4th, the benchmark price of melamine in Shengyi Society was 6417.50 yuan/ton, a decrease of -0.04% compared to the beginning of this month (6420.00 yuan/ton).
2、 Upstream raw material prices
As one of the main raw materials for melamine, the price fluctuation of urea directly affects the production cost and market price of melamine. Recently, the domestic urea market has continued 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 led to a decrease in the production cost of melamine, but has not effectively boosted market demand. Instead, it has exacerbated the weak operating situation of the market due to oversupply. On December 4th, the benchmark price of urea in Shengyi Society was 1981.25 yuan/ton, unchanged from the beginning of this month.
3、 Market Atmosphere and Future Prospects
1. Overcapacity: The rapid growth of melamine production capacity in China has led to oversupply in the market. In the future, with the deployment of more new production capacity, the problem of overcapacity will further intensify, which will limit the long-term development of the melamine market.
2. Weak downstream demand: The main application areas of melamine include board, impregnated paper, adhesives, coatings, etc. However, the market demand in these fields has grown slowly, and even experienced a decline during certain periods. For example, the regulatory policies in the real estate market have led to a decrease in demand for building templates, which in turn affects the market demand for melamine.
3. The export situation is severe: the export market for melamine is also facing severe challenges. On the one hand, the international market competition is fierce, and Chinese products need to face competition from other countries and regions; On the other hand, the international trade environment is complex and ever-changing, and uncertain factors such as trade barriers and technical barriers may affect the export of melamine.
4. Increased environmental pressure: With the continuous strengthening of environmental policies, melamine production enterprises need to increase environmental investment, improve production processes, and reduce pollution emissions. This will increase the production costs of the enterprise, reduce profit margins, and thus affect the production enthusiasm and market competitiveness of the enterprise.
At present, the market atmosphere for melamine is average, and the market is operating weakly and steadily. Affected by the increase in supply and weak demand, the market price of melamine is expected to continue to operate at a low level. In the foreseeable future, with the gradual release of new production capacity and the gradual recovery of downstream demand, the supply and demand relationship in the melamine market is expected to be adjusted. However, in the short term, the market may still face pressure from oversupply, and the trend of low prices is difficult to change.
In summary, although the melamine market may remain stable in the short term, it still faces many challenges in the long run. Enterprises need to actively respond to the challenges brought by market changes and policy adjustments, and seek new development opportunities and growth points.
| http://www.lubonchem.com/ |