SunSirs: Poor Demand Leads to Weak Melamine Market

https://www.chemnet.com   Aug 16,2024

Market overview

The trading atmosphere of melamine market was cold on Wednesday this week, and the price continued to fall, but the decline has slowed down. As of August 13, the reference price of melamine was 6775.00RMB/ton, down 0.73% from August 1 (6825.00 RMB/ton). Manufacturers mainly execute pre-collected orders and have little willingness to adjust prices. In the short term, the market lacks guidance and the market is stagnant. Next week, due to the increase in the number of companies resuming production and the lack of expectations for improvement in downstream demand, prices may continue to remain weak.

Supply side

The urea market did not stop falling and rebounded for a long time at the beginning of this month, and then slowly entered the downward channel. When the demand side weakened, the maintenance plan of large factories also temporarily put the supply side at a staged low. The weakening of both supply and demand maintained a narrow adjustment of the urea market. As of August 13, the reference price of urea was 2293.00 RMB/ton, down 1.55% from August 1 (2329.00 RMB/ton

Demand

The melamine market has been quiet recently, and the demand side has followed up appropriately. It is understood that the operating load of some board factories has been reduced recently, and considering that the supply of melamine will increase after the maintenance of many melamine factories in the future, the downstream manufacturers and traders have reduced their demand for melamine purchases.

This week, China's melamine production was 34,200 tons, up 11.04% from last week. Next week, some maintenance units in Anhui, Shandong and Sichuan will resume shipments one after another, and the supply of melamine may increase.

Overall, the cost side still has support, and there are certain positives on the supply and demand side. It is expected that the melamine market will continue to decline in the short term, and the price range may be 6100-6400RMB/ton. It is necessary to pay attention to new news changes such as factory start-up adjustments and demand follow-up.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.

 Print  |    add to Favorites  |    Close