The cost of raw materials remains high, and the price of melamine has slightly increased

Recently, the melamine market as a whole has shown a narrow upward trend. As of January 27th, the benchmark price of melamine in Shengyi Society was 5637.50 yuan/ton, an increase of 0.44% compared to last week (5625.50 yuan/ton).

The recent slight increase in prices is mainly supported by the following factors:
Rigid cost support: The price of urea, the main raw material, remained high in January, significantly reducing the profit margin of production enterprises and enhancing their willingness to raise prices. As of January 28th, the benchmark price of urea in Shengyi Society was 1747.50 yuan/ton, an increase of 1.30% compared to the beginning of this month (1725.00 yuan/ton).
Tightening supply: In January, many domestic production enterprises arranged for equipment shutdown and maintenance or reduced load operation, resulting in a decrease in the overall operating rate of the industry and a tightening of market spot supply.
Urgent procurement and export support: Domestic downstream industries such as sheet metal and coatings generally adopt an on-demand procurement strategy. At the same time, export demand remains at a healthy level, playing a stabilizing role in the domestic market.
Short term market outlook
At present, there are mixed long and short factors in the market, and it is expected that prices will maintain a high volatility pattern before the Spring Festival. The high cost support and relatively tight supply constitute the fundamental support for market prices. Whether downstream industries will start centralized stocking before the Spring Festival is the key to breaking the current market balance and driving price increases. If the equipment that is shut down for maintenance after the holiday is concentrated and quickly resumed production, it may increase the supply pressure.
In summary, the melamine market has shown a slight increase recently, driven by cost pressures and supply tightening. Whether the future price can further rise requires close attention to the downstream stocking situation before the Spring Festival.