This week, the mainstream market price of melamine rebounded from a low level, and some companies raised their quotes by 100-300 yuan/ton. However, transactions were mainly for essential needs, and there was significant resistance to high price transactions. As of April 1st, the benchmark price of melamine in Shengyi Society was 6050 yuan/ton, an increase of 1.42% compared to the beginning of last month (6137.50 yuan/ton).
| Melamine |
As the main raw material of melamine, the price increase of urea will directly increase the production cost of melamine. In order to maintain profit levels, melamine companies may choose to increase product prices.
During the peak season of agricultural production, the demand for urea increases significantly, leading to a shortage of supply in the market and often causing prices to rise. As the temperature warms up, the demand for agricultural fertilizers is gradually released. March and April are the peak season for spring wheat to turn green and become fertilizer, followed by the peak season for high nitrogen compound fertilizer production, which has to some extent driven up the price of urea. As of April 1st, the benchmark price of urea in Shengyi Society was 1997.00 yuan/ton, an increase of 5.55% compared to the beginning of last month (1892.00 yuan/ton).
Although melamine production remains neutral, inventory remains at seasonal highs, and the sluggish real estate industry limits the growth potential of industrial demand. However, in certain regions or specific time periods, if the supply of melamine is tight and the demand is relatively stable or increases, the price may also experience a slight increase.
Local melamine enterprises may face challenges in transportation or shipping, such as rising logistics costs and limited transportation capacity. These issues may lead to a tight supply of melamine, thereby pushing up prices.
Reasonably arrange the production and procurement plans of urea and melamine based on market demand and price trends, in order to reduce costs and cope with the challenges brought by price fluctuations.
In summary, the gradual increase in raw material urea prices in the second half of the year and the slight rise in prices of local melamine enterprises under cost pressure are the result of multiple factors working together. In the future, we should continue to pay attention to market dynamics, arrange production and procurement reasonably, and strengthen risk management to address potential challenges.
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