Active Trading Drives Price Increases, Melamine Market Breaks Out of Sideways Trend

August 12th news

Recently, the melamine market in China has been stable. As of August 12, the benchmark price for melamine was 5837.50 CNY/ton, an increase of 0.21% compared to the beginning of this month (5825.00 CNY/ton).

Upstream raw materials continue to be weak in China.

This month, the price of urea raw material showed a fluctuating downward trend. As of August 12, the benchmark price of urea was 1,777.50 CNY/ton, a decrease of 1.93% compared to the beginning of the month (1,812.50 CNY/ton) in China.

From the supply side: Urea is facing a daily production of nearly 200,000 tons and a high operating rate of 83%, with inventory volume also showing a gradually increasing trend.

From the demand side: Downstream agricultural demand is sporadic, and dealers across China have reached a consensus, slowing down the restocking process. Industrial demand is also weak as compound fertilizer terminal stocking is nearing its end, leading to a lower willingness of factories to purchase raw materials. Overall, the market situation is relatively weak.

Market sentiment lacks sufficient support.

Despite the decrease in the price of raw material urea, the demand from downstream panel factories has increased, and dealers are more enthusiastic about making payments. The market is experiencing strong sales, and industry players are optimistic. Most factories have raised their prices to maintain stable orders, with an increase of around 100 CNY per ton. In the southern regions of China, some enterprises have resumed production and are actively shipping goods, leading to a significant increase in average production, which is now generally maintained at over 80%.

Future Market Prediction

Overall, there is still room for the melamine market price to increase in China, but the upward momentum is not strong. Downstream demand is sporadic, and although the overall trading atmosphere has improved, activity remains limited. Additionally, due to the current adjustments in international tariffs, the difficulty of exporting melamine from China has increased, leading to a slow progression of the overall market. In the future, continued attention should be paid to the trend of raw material prices and downstream demand.