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Melamine Market Begins to Rebound Due to Positive Factors 2022-05-10

Here is the melamine market situation shared by Huafu Melamine Molding Powder Factory. The following data is for your reference.

As a manufacturer of MMC, Huafu Chemicals will continue to provide melamine tableware manufacturers with high-quality and high fluidity melamine tableware raw material powder.

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The downward trend of the domestic melamine market was stopped in mid-April, and then the price increase mode was started.

As of May 7, the national average ex-factory price was about 9,330 yuan/ton (about 1,386 US dollars/ton), an increase of nearly 9.8% compared with mid-April.

price trend of melamine normal pressure products in China

There are three main reasons for this round of price hikes

1. The price of urea continues to rise, which provides continuous cost support for melamine;

2. Some melamine plants have been shut down for maintenance in a centralized manner, the operating load rate of the enterprise has dropped rapidly, and the supply of goods has been tightened;

3. The gradual warming of domestic and foreign downstream markets.

Supply side: Enterprise operating load rate plummeted

China's melamine enterprises operating load rate

Before mid-April, the operating load rate of melamine enterprises continued to be above 80%. As of May 7, it has fallen to about 66%, down 20 percentage points from this year's peak of 86%.

It is expected that the operating load rate of enterprises will pick up slightly next week.

Demand side: the downstream market gradually heats up

After the May 1st holiday, the restrictions in some regions were gradually lifted, and some terminal factories resumed production or increased the load, and domestic demand showed an increasing trend.

It is expected that the export volume of melamine in April will remain at a high level.

Cost side: urea prices continue to rise

China's melamine cost and profit trend

Recently, the urea market has continued its price hike mode. As of May 7, the national average market price has risen to 3,100 yuan/ton (about 460 US dollars/ton). On the whole, the production cost line has moved up, which is good to support the confidence of manufacturers to increase prices.

Market outlook forecast:

From the perspective of cost, there is still room for urea prices to continue to rise, so the positive boost to the cost of melamine will continue to exist;

From the perspective of supply, there are plans to resume production in the later stage of parking devices, but in the short term, the number of restorations is limited. Therefore, the increase in the operating load rate of enterprises is slow, which will fluctuate around 70%, and the supply pressure will be reduced;

From the perspective of demand, the domestic terminal market will develop in a positive trend in the future, and it is difficult for a large-scale increase in demand in the short term, so the positive support is slightly insufficient; but export orders will continue to follow up.

Huafu Chemicals believes that the price of melamine still has room for growth. Under the circumstance of insufficient release of domestic demand, the increase may be restricted to a certain extent.

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