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    Home > Chemicals Industry > China Chemical > Melamine continues its weakness

    Melamine continues its weakness

    • Last Update: 2022-04-19
    • Source: Internet
    • Author: User
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      Since March 18, melamine has declined weakly
    .
    According to the monitoring data of Zhongyu Information, on April 6, the mainstream price of the melamine market in East China was 10,000~10,200 yuan (ton price, the same below), which was 800~1,000 yuan lower than the 11,000 yuan on March 18

    .
    Affected by unfavorable factors such as increasing market supply, continued weak domestic demand and poor foreign exports, it is expected that melamine will continue to run weakly in the short term

    .


      Zhongyu Information melamine analyst Fan Jing introduced: "The average operating rate of melamine in March was 78%, and the daily operating rate was as high as 80%
    .
    With the resumption of production of 30,000 tons/year melamine and other units in Anhui Huaertai in late March and the supply to the outside world At present, most domestic enterprises are operating normally

    .
    At the beginning of April, Sichuan Meifeng 30,000 tons/year plant, Xinjiang Kuitun Jinjiang 50,000 tons/year plant and Henan Zhongyuan Dahua 60,000 tons/year plant will be launched after the Qingming Festival.
    The domestic supply of melamine may increase

    .

      "At present, Hebei Xinji Jiuyuan Chemical (Phase I), Henan Xinlianxin (New Phase) and Anhui Huaertai melamine plants have resumed production and supply to the outside world, and the melamine operating rate may reach more than 80% in the later stage
    .
    " Longzhong Information Ding Xiuna, a melamine analyst, also holds the same view.
    Recently, the domestic melamine plant has resumed work and production significantly, which has increased the supply of melamine in the market

    .

      While supply has increased, demand has been constrained due to the COVID-19 pandemic
    .
    Recently, the epidemic has caused problems in the production and sales of terminal manufacturers in many regions

    .
    For example, some larger plate bases such as Hebei, Jiangsu, and Shandong have limited production, and the situation of having goods and no cars continues

    .
    According to the introduction of relevant plate enterprises, plate enterprises in some areas of Shandong have stopped production, and due to the superposition of various factors, it is difficult to find cars due to the increase of 50% in the freight of some lines of enterprises in the area

    .
    Although some sheet metal factories said that the current production has not been greatly affected, due to factors such as highway closures and traffic control in many places, transportation vehicles have been reduced and freight costs have increased by 10% to 30%

    .
    The transportation is limited, the supply of goods is not well circulated, and the terminal enterprises have low operating rates and limited demand due to insufficient raw material arrivals

    .

      "This year, the demand for melamine is relatively weak, and the company has received fewer orders.
    The increase in raw material prices and the reduction in production profits of the company make it difficult to increase the price of the sheet metal market within six months at least

    .
    There is no obvious positive transmission of domestic demand for the time being, so demand faces melamine.
    Market support is relatively limited

    .
    " Ding Xiuna said

    .

      Fan Jing said that domestic demand for melamine is flat, and downstream procurement is less motivated, and it is mainly used as needed
    .
    The Qingming holiday and some downstream holidays further exacerbated the weak demand situation

    .
    Domestic melamine production capacity is overcapacity, and it is strongly dependent on exports, and some enterprises rely on exports for support

    .
    At present, the export volume of domestic melamine is small, and export traders are cautiously watching, mainly focusing on the futures source before digestion

    .

      From January to February this year, the total domestic melamine export volume was about 105,000 tons, and the export mainly went to Turkey, India and Russia
    .
    Among them, melamine exported to Russia was 11,000 tons, accounting for 10.
    5% of the total export volume

    .
    Recently, with the escalation of the conflict between Russia and Ukraine, and the adoption of currency sanctions by many countries, the exchange rate of cross-border transactions has been chaotic, and international transportation has been blocked, which has led to the "forbidding" of overseas trade.
    It is expected that the increase in melamine exports in April will be hindered

    .

      On March 18, the Department of Internal Market Protection of the Eurasian Economic Commission issued an announcement stating that a final anti-dumping ruling was made against melamine originating in China, and the ruling proposed to impose a five-year anti-dumping duty on the products involved
    .
    Among them, the tax rate of Sichuan Jinxiang Sairui Chemical Co.
    , Ltd.
    , Xinjiang Jinxiang Sairui Coal Chemical Technology Co.
    , Ltd.
    and Xinjiang Yuxiang Populus euphratica Chemical Co.
    , Ltd.
    are all 19.
    08%, Xinjiang Xinlianxin Energy Chemical Co.
    , Ltd.
    is 15.
    22%, and other tax rates are 19.
    08%.
    Chinese producers were 19.
    08%

    .
    China's largest exporters of melamine are Shandong, Sichuan, Henan, Xinjiang and other places.
    The Eurasian Economic Union has made a final ruling on the imposition of anti-dumping duties on melamine from major producing areas such as Sichuan and Xinjiang, which is even more negative for the melamine export market

    .

      "It is expected that the short-term melamine market will remain weak unless demand improves or the export market begins to purchase
    .
    " Fan Jing said

    .

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