Market Overview

This week, the domestic melamine market experienced a weak downward trend, and the fundamentals showed weakness. According to the Commodity Market Analysis System of Shengyi Society, as of September 24th, the reference price of melamine was 6762.50, a decrease of 0.18% compared to September 1st (6775.00). Mainly supported by low-priced orders in the early stage. Overall, the fundamentals are weak, and the trading atmosphere in the melamine market is average.

Supply side

This week, with the recovery of previous maintenance equipment and the gradual production of new capacity, the national urea market is expected to continue to increase in daily output and future market. Enterprise inventory is also accumulating, and the supply side continues to be loose, leading to increasing pressure.

According to the Commodity Market Analysis System of Shengyi Society, as of September 25th, the benchmark price of Shengyi Society’s urea was 2145.00 yuan/ton, a decrease of -1.29% compared to the beginning of this month (2173.00 yuan/ton).

In terms of demand

The melamine market has recently cooled down, and from the perspective of demand and raw materials, the market has weak positive news and insufficient demand follow-up. It is reported that some sheet metal factories have recently reduced their operating load, and considering that the supply of melamine will increase in the later maintenance and restoration of multiple factories, downstream manufacturers and traders have reduced their demand for melamine procurement.

Overall, the decrease in local production capacity utilization rate of melamine has provided support for the market, but there is insufficient demand and raw material benefits, and the overall market atmosphere is average. It is expected that the short-term market situation will be mainly stable and fluctuating, and in the long run, the market will lack guiding factors and may mainly follow the market trend.