The following content is organized by Huafu Chemicals, a manufacturer of melamine tableware raw material powder, hoping it’s helpful for you.
The domestic melamine market was under pressure this week. The national normal pressure product factory fell by 8.43% month-on-month, and increased slightly by 1.91% year-on-year.
- In the early stage, with the pressure of high-end transactions, the shipment transactions of some manufacturers gradually loosened, and the enthusiasm for purchasing decreased significantly.
- With the weakening of the domestic market, some export inquiries have also become cautious, and the wait-and-see mood has increased.
- At present, although the price of urea has fallen, the price is still relatively high, so it can still provide cost support for melamine to a certain extent.
- The operating load rate of melamine enterprises fluctuates around 70%, and some manufacturers have no supply pressure for the time being.
Market trend analysis and forecast
1. From the perspective of supply, some parking devices will be planned to resume production, the company's operating load rate may recover, and the market supply will gradually increase.
2. From the perspective of demand, it is difficult for the downstream demand at home and abroad to have a substantial improvement, and the overall downturn will continue, which will have a negative impact on the market.
3. From the perspective of cost, the raw material urea market is still weak, and the decline is limited in a short period of time. Therefore, when the price remains high, there is still a certain cost support for melamine.
As the contradiction between supply and demand continues to expand, the cost-pulling effect is slightly weak. Huafu Chemicals believes that the domestic melamine price may continue to decline in the short term, and the cost line remains at a high level, which may limit the decline to a certain extent.
Post time: May-27-2022