SunSirs: Light Demand, Melamine Market Continues to weaken

https://www.chemnet.com   Sep 13,2024 SunSirs

Market Overview

This week, the melamine market has been volatile, and overall, the fundamentals are weak. As of September 12th, the reference price of melamine was 6,762.50 RMB/ton, a decrease of 0.18% compared to September 1st (6,775.00 RMB/ton). Prices in northern regions continued to decline, and some companies in Shandong and Xinjiang have adjusted their prices based on their own orders. Some regions have set new lows, and some companies with good orders have experienced significant price reductions due to the overall lack of confidence among market participants. In the future, some facilities in northern regions will undergo maintenance, and supply reduction may provide some support for prices.

Supply side

This week, the domestic urea market continued to decline and consolidated, with no signs of stopping the decline. The focus of transactions continued to shift downwards, and overall market transactions remained average! As of September 13th, the benchmark price of urea in SunSirs is 2,117.00 RMB/ton, a decrease of 2.58% compared to the beginning of this month (2,173.00 RMB/ton). The daily production of urea maintains a high level of operation, and currently the urea market is difficult to find good news.

In terms of demand

The 'Golden September' has arrived, but there has been no significant improvement in domestic demand, with on-demand procurement being the main focus, making it difficult for the melamine market to experience any fluctuations. In addition, the raw material urea market continues to be weak, and the cost support for the melamine market is limited.

Market outlook

Overall, demand is still weak, and downstream industries such as sheet metal are difficult to boost in the short term. Downstream procurement tends to be cautious; In terms of supply, although the industry's capacity utilization rate has decreased compared to the past, the overall market supply is still relatively high; In terms of raw material urea, the current urea price is still low, which temporarily makes it difficult to form strong support for the melamine market. It is expected that the melamine market will continue to operate weakly in the short term, and continuous attention should be paid to the operating conditions of enterprises and changes in urea prices.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with?support@sunsirs.com.

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