The market trend of melamine, formaldehyde and pulp are all very important to melamine tableware raw material market. Today, Huafu Chemicals will share with you the melamine market review in August.

In August, China's melamine market rose in a narrow range and then fell back.

As of August 29, the average ex-factory price of melamine products at normal pressure in China this month was 7,352 yuan/ton ($1,065/ton), an increase of 3.13% over the same period last month.

• At the beginning of this month, the rally at the end of July continued. With the continuous shutdown or maintenance of new devices, the operating load rate of enterprises continued to decline, the supply pressure was significantly reduced, and the price continued to fluctuate at a low level, with limited profit margins and some strong intentions to increase prices. , the price began to increase tentatively one after another.
• In the middle of the year, the growth rate has accelerated, while the downstream is still in the off-season of consumption, the demand remains sluggish, and there are many pre-stocks available for use. Therefore, as the price continues to rise, the resistance increases, and the enthusiasm for purchasing goods decreases.
• In addition, as prices continued to rise, the profitability of enterprises improved, and the enthusiasm for production increased. After the end of the ten-day period, some equipments that had stopped production resumed gradually, and the operating load rate of enterprises slowly recovered.
• Under the circumstance that supply increases but demand does not increase, some industry players tend to be pessimistic, the market trading atmosphere has cooled, and manufacturers' willingness to actively ship products has increased, and the transaction prices have begun to loosen at the end of the month.

1. From the perspective of cost, the overall ups and downs of the raw material urea market in the later period is relatively limited, and it may continue to fluctuate at a low level, and the cost support for melamine is general.

2. From the perspective of supply, although some enterprises have maintenance plans in September, there are still equipment that has been shut down to resume production. The average operating load rate of enterprises has increased compared with August, and the output has increased. In addition, there are many differences between dealers and downstream users. The level of inventory is available, and the overall supply of goods in the market is relatively abundant.

3. From the perspective of demand, September is a traditional peak season for consumption, and the overall start-up of downstream factories is expected to increase. However, affected by the current domestic and foreign situation, the increase in start-up may not be as good as the same period in previous years, so it may have a certain degree of restraint on the market.

Melamine Market Trend

In the future, the supply and demand pattern of melamine may be relatively loose. Huafu Chemicals believes that the market in the early stage of September will continue the price decline at the end of August, and when the price falls near the cost line again, the decline will gradually slow down, both at home and abroad. Distributors and downstream users may consider a new round of purchase and replenishment, which is expected to boost the market rebound.

The Forecast for the Next Three Months

The market will continue to be in the traditional peak season for consumption. Under no special circumstances, the overall downstream construction may improve. However, compared with the supply side with sufficient supply, the increase in demand will be good for the market. The boost may be relatively limited, so the market may have little room for ups and downs.