The melamine market continues its upward trend and the price hits a new high!

The market for melamine rose sharply in April. Since May, the market has continued to rise and hit a new high. According to the monitoring sample data of the business agency, as of May 7, the average price of melamine enterprises was 14,900 CNY/ton, an increase of 2.76% compared with the previous trading day, and an increase of 55.48% compared with April 7. The monthly cycle has increased by 106.94% year-on-year.

The market supply and demand pattern has not changed much, and the market is running at a high level.

Since May 1st, market prices have shown a clear upward trend. The export market has performed well. Domestic trade is dominated by rigid demand. Supported by the anticipated orders, companies have no sales and inventory pressures. The tight spot supply continues, and corporate quotations continue to rise.

Urea upstream, the Urea market in Shandong was temporarily stable on May 7. In terms of demand: agricultural demand is mostly sporadic procurement; downstream compound fertilizer and rubber sheet plants have increased slightly, and most of them follow the market. On the supply side: The current operating rate of urea companies is about 70%, which has declined, with a daily output of about 150,000 tons. The urea enterprise equipment was overhauled, and the supply side was tightened.

In April 2021, the commodity price increase and decrease list included 51 commodities in the chemical sector that increased month-on-month, of which 30 commodities increased by more than 5%, accounting for 32.6% of the monitored commodities in this sector; the top 3 commodities were respectively Melamine (34.28%), acetic anhydride (31.91%), acetic acid (29.83%). A total of 31 products fell month-on-month, and 15 products fell more than 5%, accounting for 16.3% of the number of monitored products in this sector; the top 3 products that fell were formic acid (-18.44%) and aniline (-17.86%) , N-Propanol (-16.17%). The average increase and decrease this month was 3.19%.

Business agency melamine analysts believe that the current upstream urea price is temporarily stable and the cost impact is limited. As the price of melamine rises to a high level, downstream procurement has slowed down, but the company is supported by the pending support and there is no short-term pressure. It is expected that melamine will be short-term. The market may focus on high-level operations, and more attention should be paid to market news guidance for specific trends.