This week, the melamine market continued to remain sluggish, with prices continuing to run weakly. According to data from Shengyi Society, as of June 10th, the benchmark price of melamine in Shengyi Society was 6087.50 yuan/ton, a decrease of 0.61% compared to the beginning of this month (6125.00 yuan/ton), and the market trading atmosphere was light.
Cost side: Weak support
The price of urea, the raw material for melamine, has remained stable overall recently, with some regions experiencing a slight decline. The support of production costs for the current price is limited. At the same time, the industry’s operating rate remains at a medium to high level, and some early parking facilities have resumed production one after another. The pressure on the market supply side still exists, and the cost side has not formed an effective bottom line. As of June 10th, the benchmark price of urea in Shengyi Society was 1812.50 yuan/ton, a decrease of 0.41% compared to the beginning of this month (1820.00 yuan/ton).
Supply and demand side: dominated by weak demand
In terms of supply, the overall operating rate of domestic melamine enterprises is not low, and the market supply of goods is sufficient. Some enterprises have accumulated inventory pressure; In terms of demand, downstream industries such as sheet metal and coatings have entered the traditional off-season, with insufficient terminal orders and procurement mainly focused on essential needs. The market lacks centralized replenishment actions, and weak demand dominates the current cold market atmosphere in the supply-demand game.
Future prospects
In the short term, the melamine market lacks a clear upward driving force, and prices are likely to continue to fluctuate at a low level. Special attention should be paid to the impact of fluctuations in raw material urea prices on the cost side, as well as the marginal improvement signals in demand brought about by changes in downstream industry operating rates.
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