Huafu Melamine Moulding Compound Factory will share with you this week's melamine market situation.

The domestic melamine market has slowed down this week. The national average ex-factory price of normal pressure products was 10,259 yuan/ton (about 1,528 US dollars/ton), an increase of 6.32% month-on-month and a year-on-year decrease of 23.72%.

After the quotations of some companies increased appropriately this week, the market as a whole stabilized.

Analysis and forecast of market trend

• From the perspective of supply, as some parking devices resume production or increase the load, the operating load rate of enterprises will continue to rise to more than 70%, and the supply of goods will increase accordingly.
• From the perspective of demand, it is difficult for the domestic and foreign downstream markets to change significantly, and as some prices begin to fall, the downstream will buy more and not buy more, and the enthusiasm for acquiring goods will also cool down; the supply increases and orders decrease, and the supply and demand pattern will tend to loosen.

Huafu Chemicals believes that there will be some room for decline in the price of melamine in the short term, and the price of urea is still at a high level, which can still provide a certain cost support for melamine, so it is expected that the decline in the short term may be relatively limited.

Statistics on the operating load rate of Chinese melamine enterprises (May13-May19, 2022)

This week, the average operating load rate of Chinese melamine enterprises was 68.56%, a slight increase of 0.83 percentage points from the previous month and a decrease of 9.34 percentage points from the same period last year. Huafu Chemicals believes that the company's operating load rate will continue to increase next week.