This week, the domestic melamine market continued to decline and stabilized. The national average ex-factory price of atmospheric products was 8,693 yuan/ton (about 1,298 US dollars/ton), down 7.46% month-on-month and up 0.78% year-on-year.
Market trend analysis and forecast
1. From the perspective of cost, the raw material urea market is weak, but the price remains high, and the cost side can still provide a certain positive support. From the perspective of supply, with the resumption of production of some parking devices, the operating load rate of enterprises will increase to more than 70%, and the supply of goods is still sufficient.
2. From the perspective of demand, it has entered the off-season of traditional consumption, and it is difficult to significantly improve the terminal operating level of the downstream market, so the short-term market is still in a state of oversupply.
Huafu Chemicals believes that in the short term, some melamine companies hold pending orders to ease the pressure on shipments, and the quotations may continue to rise. However, as the price rises will affect the downstream purchases, the increase is expected to be limited.
Statistics on the operating load rate of Chinese melamine enterprises (20220527-0602)
This week, the average operating load rate of Chinese melamine enterprises was 68.92%, down 1.39 percentage points from the previous month and a slight increase of 1.44 percentage points year-on-year. With the resumption of production of the shutdown equipment or the gradual increase in the load, Huafu Chemicals believes that the start-up load rate of domestic melamine enterprises will continue to increase next week.
Post time: Jun-09-2022