Price trend
According to the monitoring sample data of SunSirs, as of May 25, the enterprises average price of melamine was 10,866.67 RMB/ton, a decrease of 24.54% compared with last Wednesday (May 19), and a decrease of 13.76% compared with the price at the beginning of the month. In a three-month cycle, it rose 46.85%.
Analysis review
Recently, the melamine market has shown a downturn, and the market has dropped sharply. As to 25th, the operating rate of melamine was high, but downstream demand was weak, enterprise shipments were under pressure, supply pressure continued to accumulate and dragged the market, low prices were frequently seen in the market, but the downstream was cautious about low prices and purchases were just on demand mainly.
Regarding upstream urea, the urea market in Shandong was temporarily stable on May 25. In terms of demand: agricultural demand has risen; affected by the mentality of buying up and not buying down, downstream compound fertilizer and rubber sheet factories were actively acquiring goods, and companies' new orders were following up well. On the supply side: some urea enterprises were shut down for maintenance and the supply side was tightened. Enterprises had a strong attitude to support high prices.
Market outlook
According to the melamine analyst of SunSirs, on the whole, the upstream urea price has been operating strongly, and the cost impact is relatively limited. The supply and demand dominates the market, the demand side performance is weak, and the market performance is still under pressure. It is expected that in the short term, the melamine market may run weakly.
