At the end of May, Huafu Melamine Molding Powder Factory would like to bring you a monthly summary of the melamine market. This is important information for tableware factories to pay attention to.

China's melamine market rose first and then fell in May. As of May 27, the average ex-factory price of China's melamine normal pressure products this month was 9,688 yuan/ton (about 1,453 US dollars/ton), an increase of 7.35% from the average price of the same period last month; a decrease of 21.42% from the same period last year.

In the first half of this month, prices continued to rise.

• After the May Day, there were relatively many orders to be issued by enterprises. With the centralized shutdown of some devices for maintenance, the operating load rate of enterprises continued to hover around 60%, and the supply of goods was relatively tight;
• In addition, the price of raw material urea continued to rise, forming a strong cost pull for melamine; under the support of many favorable factors, the quotations of enterprises continued to rise.
• In the second half of the year, the price peaked and fell, and this round of price increases was mainly driven by cost. However, when the demand was relatively sluggish, the trading atmosphere cooled significantly and the focus of trading continued to decrease.

1. From the perspective of cost, the raw material urea may still fall in the later stage, but the decline may be limited, and the price is still relatively high, so it can still provide a certain cost support for melamine.

2. From the perspective of supply and demand, some maintenance devices will resume production next month, the operating load rate of enterprises will fluctuate around 70%, the operating level is still relatively high, and the supply of goods is sufficient;

3. It is difficult for the demand side to change significantly for the time being, and when there is a lot of inventory in the downstream to be digested, it is difficult to effectively improve the enthusiasm for purchasing goods, and the contradiction between supply and demand will continue to exist.

Huafu Chemicals believes that the main tone of the melamine market in June remains weak, and the price may continue to fall despite the lack of demand support.

Forecast for the next three months

The market has entered the traditional off-season of consumption, and it may be difficult for the demand side to provide substantial positive support. While there is still room for profit, most companies will maintain stable production and sufficient supply of goods. The supply and demand pattern will remain relatively loose in the later period, while the cost will still be certain. Under the support, it is expected that the price fluctuation of melamine may be limited in the future.

Statistics on the operating load rate of Chinese melamine enterprises (May 2022)

Huafu Chemicals expects the average operating load rate of Chinese melamine enterprises to be 70.13% in May, down 10.43 percentage points from the previous month and down 3.57 percentage points from the same period last year.

In the first half of this month, there were many parking enterprises, and the operating load rate of enterprises dropped from 80% at the beginning of the month to about 60%, and the supply of goods was tightened.

In the second half of the year, some parking devices resumed production one after another, and the operating load rate of the company gradually rose to nearly 80%, and the supply volume increased accordingly.

With the resumption of production of some parking devices, Huafu Chemicals believes that the operating load rate of enterprises will still fluctuate around 70% next month.