According to the Commodity Market Analysis System of SunSirs, as of July 27th, the average price of melamine from melamine enterprises was 6,875.00 RMB/ton, an increase of 4.56% compared to July 1st and a decrease of 5.82% compared to the same period last year.
Analysis review
The melamine market slightly increased in July. In the first half of the month, the price of raw material urea increased, and cost support increased. Enterprises mainly executed advanced orders, and the supply of spot goods was tight. The company's quotation was increased, and downstream demand was flat. Downstream just in needed followed up with an appropriate amount. In the second half of the month, downstream delivery was cautious, and enterprises actively shipped. Some high-end prices were lowered, and the market remained stable and organized. With the gradual increase in raw material urea prices and strong cost support, melamine prices continued to rise, and downstream procurement was mainly in demand.
Upstream urea, according to the Commodity Market Analysis System of SunSirs, saw an increase in the urea market in July. On July 27th, the reference price for urea was 2,545.71 RMB/ton, an increase of 12.46% compared to July 1st (2,263.75 RMB/ton).
Market outlook
Melamine analysts from SunSirs believe that as of July 27th, the price of raw material urea was relatively stronger, with significant cost support. The operating rate of melamine increased compared to the previous period, and the demand performance was average. It is expected that in the short term, the melamine market may be on the sidelines, and more attention needs to be paid to changes in raw material prices.
