In August, the average spot price of melamine in China decreased by 3.67% month-on-month and 17.19% year-on-year.
Since the second half of July, the supply of melamine has gradually increased and prices have fallen. However, in August, manufacturers were not strongly willing to continue reducing prices, and the market stabilized.
In mid-August, due to the shutdown and maintenance of some plants, and with the acceptable orders received at low prices in the early stage, prices in northern regions rose slightly. However, downstream demand did not increase significantly. Coupled with the weak decline in the price of raw material urea and the restart of some maintenance plants, industry players were pessimistic, and melamine market prices loosened again in late August.
Analysis of market influencing factors:
In September, melamine plants will start up and shut down. It is expected that the overall operation will be at a high level. In terms of demand, demand will mainly recover slowly and have limited support for the melamine market.
In terms of cost, raw material urea will mainly fluctuate repeatedly at a low level. Generally speaking, there is insufficient positive news in the melamine market, and the market in September will likely continue to operate weakly and fluctuate.
Remark: The analysis is based on transaction in China’s Melamine domestic market, it’s only for reference.
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