Thread Content
Melamine price rises above 8,000 yuan again Author/Source: Sinochem New Network Date: 2021-03-16 Clicks: 3 Since February, the domestic melamine market has seen a significant increase in prices, with the average price rising from 7,200 yuan per ton to 8,100 yuan, an increase of 12.5%. Compared to the same period last year, this increase is even higher, at over 30%. Three years later, the price of melamine rose back above the 8,000 yuan mark. Industry experts analyze that the sharp rise in melamine prices is mainly due to three factors: first, rising raw material costs. Since the outbreak of the COVID-19 pandemic, food security has received significant attention from various countries. There is a continuous high demand for fertilizers in regions such as South America, Africa, South Asia, and Southeast Asia. Affected by factors such as production disruptions and export policies, international urea prices have risen sharply this year, reaching over $360. This has also driven up prices in the domestic urea market, with factory prices reaching around 2,200 yuan at their peak, an increase of 300–400 yuan compared to the beginning of the year. Rising urea prices have increased the production costs of melamine. Second is the improvement in demand. Wood-based panels represent the main downstream industry for melamine. Last year, from February to March, it was the most severe period of the epidemic control efforts in China; many enterprises suspended production, and the operating rate of panel manufacturers was very low. This year, enterprises have largely returned to normal production, with the operation rate rising by more than 50% on a year-on-year basis; demand for melamine is also increasing. Third is strong export performance. Our country is the world’s largest exporter of melamine, with exports exceeding 20,000 tons per month on average. Affected by factors such as the pandemic, the production continuity and operating rates of melamine plants abroad this year are lower than those in China. At the same time, due to high international urea prices, the production cost of melamine has risen significantly, thereby enhancing China’s competitiveness in the melamine export market. This year, melamine exports are looking optimistic, which is beneficial for the domestic market.