According to the Commodity Market Analysis System of the Business Society, as of May 29th, the average price of melamine enterprises was 7325.00 yuan/ton, a decrease of 2.98% compared to May 1st.
The melamine market slightly declined in May. In the first half of the month, the price of raw material urea fluctuated and fell, the cost support weakened, some maintenance devices resumed production, the industry’s operating rate increased, and downstream demand did not significantly improve. Inquiry procurement was mainly based on demand, and the market atmosphere was weak. The melamine market was operating in a weak position. In the second half of the month, the price of raw material urea was weak, with insufficient cost support. The utilization rate of melamine production capacity decreased, and the market supply decreased. However, downstream demand was poor, and there was still a supply-demand contradiction in the market. The mentality of the industry was insufficient, with replenishment being the main demand. Enterprise sales were under pressure, and the focus of negotiations in the melamine market slightly declined.
Upstream urea, according to the Commodity Market Analysis System of Business Society, the reference price of urea on May 26th was 2447.50, a decrease of 6.36% compared to May 1st (2613.75).
Melamine analysts from Business Society believe that currently, the price of raw material urea has decreased, and cost support is weak. The supply side is gradually increasing, but the follow-up on the demand side is limited. It is expected that in the short term, the melamine market may become weak and operate, and more attention needs to be paid to market news guidance.