According to the monitoring sample data of SunSirs, as of June 2nd, the average price of melamine was 9,166.67 RMB/ton, an increase of 1.10% compared with the previous trading day, and fell by 27.25%compared with the price on May 1 (12,600 RMB/ton).
Analysis review
The market price of melamine rose to a high level in May and then fell sharply. In June, the price stopped falling and rebounded.
In May, the price of melamine rose to a new high and loosened, then the market showed a downturn, with a monthly decline of 25.93%. Entering June, the melamine market stopped falling and rebounded on the 2nd. On the cost side, the upstream urea price has risen recently, the cost support has been strengthened. On the supply side, the operating rate of melamine was slightly lowered, and on the demand side, downstream demand improved, which boosted the market.
Urea upstream, the urea market in Shandong increased on June 2. In terms of demand: agricultural demand rose, affected by the mentality of buying up and not buying down, downstream compound fertilizer and rubber sheet factories were actively acquiring goods, and new orders of enterprises 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 the price.
Market outlook
The melamine analyst of SunSirs believes that, on the whole, the upstream urea price has been operating strongly recently, and the cost support is strong, coupled with the improvement of downstream demand to support the market price increase, it is expected that the melamine market may rise slightly in the short term.
