In Jan, melamine price fluctuated and fell, and it stabilized near the end of the month.

At the beginning of the month, the factory utilization rate is relatively high, but downstream demand remains flat, putting pressure on the market.

However, in the middle of the month, as the maintenance cycle arrives, some companies reduce production load, resulting in reduced supply and a decrease in the factory utilization rate to around 60%. This leads to a tight overall supply, followed by a market rebound and gradual price increase.

Towards the end of the month, the fluctuations in supply and demand are relatively small, and the market gradually stabilizes.

From the cost perspective, urea is relatively high this month, which may provide some cost support. Currently, the melamine market is less affected by raw materials.

From the demand side, as the year-end approaches, downstream factories gradually shut down for holidays, resulting in a decrease in factory utilization and a lack of strong demand support. Industry insiders mostly engage in short-term rational follow-up, buying as needed.Therefore, the trading atmosphere for new orders remains lukewarm, especially for high-priced inquiries.

However, many manufacturers currently have a considerable number of pre-ordered contracts to fulfill and no significant inventory pressure, so their willingness to maintain prices remains strong. 

Remark: The Analysis Is Based On Transaction In China’s Domestic Market, It’s Only For Reference.