This week, the domestic melamine market showed a slight upward trend. As of November 25th, the benchmark price of melamine in Shengyi Society was 5450.00 yuan/ton, an increase of 0.23% compared to the beginning of this month (5437.50 yuan/ton). From a regional perspective, Hebei region has shown the strongest performance.
The widespread price increase on a small scale this time can be mainly attributed to the following reasons:
| Melamine |
Cost side:
The main raw material of melamine is urea. According to market data, on November 25th, the benchmark price of urea in Shengyi Society was 1657.50 yuan/ton, an increase of 3.11% compared to the beginning of this month (1607.50 yuan/ton). The overall market has shown signs of recovery. The stabilization of raw material costs has provided some bottom support for the price of melamine.
At present, the capacity utilization rate of the melamine industry remains high and fluctuates. This may mean that some companies have tightened their local supply due to equipment or sales strategy adjustments, thereby driving short-term price increases.
Demand side:
It should be noted that the overall demand in the downstream market has not shown a significant improvement, and the performance is relatively flat. This makes the current price increase more defined as a “catch-up” or “small rebound” rather than a significant increase driven by strong demand. According to earlier industry analysis, the main downstream of melamine (such as artificial boards) is still relatively weak in demand due to the impact of the real estate industry.
Overall, the melamine market has recently experienced a slight upward trend driven by cost recovery and short-term supply adjustments. However, due to the lack of fundamental improvement in terminal demand, the overall upward space of the market may be limited.
In the short term, prices may maintain a trend of strong volatility, but whether they can continue to strengthen in the long term still requires close attention to the recovery of downstream demand and the stability of production operations of various enterprises.
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