Melamine price cut in two months

After the price of melamine hit a record high of 20,100 yuan (ton price, the same below) in early November 2021, the price of melamine fell sharply.
By the beginning of 2022, it had fallen to 9667 yuan, a drop of up to 2 months.
51.
9%
.

Industry insiders believe that there are three main reasons for the recent sharp drop in melamine prices:

One is the excessive increase in the previous period
.
After August 2021, the melamine market has experienced a surge in the price of urea and better exports.

The second is a substantial increase in output
.
According to statistics from Zhongyu Information, as of November 2021, the domestic production of melamine has accumulated to 1,353,100 tons, an increase of 23.

The third is the weakening of downstream demand
.
Not only is the domestic demand for melamine weak, but the export market is also not satisfactory

Zhongyu Information analysis believes that after the price of melamine has fallen sharply, the short-term market has rebounded, consuming part of the previous inventory, and companies are more willing to stand up for the price
.
However, with the weakening of demand at the end and the beginning of the year, and the approach of the Winter Olympics, the start of some installations is restricted, and the epidemic counterattack, it is expected that the melamine market will be dominated by a downturn in the later period