Recently, the melamine market has stabilized and improved. According to the Commodity Market Analysis System of the Business Society, as of August 21, the average price of melamine enterprises was 7050.00 yuan/ton, which is unchanged from last Tuesday (August 15) and a decrease of 9.23% compared to the same period last year.
Supply and demand side: Recently, some devices on the supply side have been shut down for maintenance, and the production capacity utilization rate of the melamine industry has decreased. The tight supply has provided some support for the market, and downstream demand is mainly for follow-up. Melamine prices have stabilized and sorted out. On the 21st, the mainstream factory prices of enterprises in East China were around 7600 to 7700 yuan/ton.
Cost side: Recently, the market price of raw material urea has been operating at a high level. According to the Commodity Market Analysis System of Business Society, on August 21, the reference price of urea was 2640.00, which increased by 0.65% compared to August 1 (2622.86). The cost side has strong support for the melamine market, supporting the enterprise’s price mentality.
Melamine analysts from Business Society believe that both cost and supply are currently supported, and downstream purchases are made on demand. It is expected that the melamine market may remain strong in the short term, and more attention needs to be paid to market news guidance.