1. Overview of China’s domestic melamine market in October

China’s melamine market continued on upward trend in October. As of October 27, the average factory price of  melamine products this month was 19,666 yuan/ton, 3,072 yuan/ton higher than that of the same period last month, or 18.51%; Compared with the same period last year, 14,453 yuan/ton, or 277.25%. From National Day holiday eve market begins to recover , exports enquiry rising , producers advance continue to increase, so the price upward intention is strong, and with the holidays start and producers have stop production for overhaul, the production  rate dropped to below seventy percent, the market supply is in tight situation and  price rebound tremendously. As the price continues to break through new highs, inhibiting the enthusiasm of downstream procurement, production pressure continues to increase, most downstream factories  reduce  production rate, the domestic market transaction is relatively quiet, but export provides strong positive support, producers  have no production, sales and storage pressure, so the price support on this level is strong.

 

2. Focus  in November

2.1 China has taken  inspection measures on the export of urea, ammonium chloride and other products, which will have a certain impact on the fundamentals of the whole market

2.2 November and December are still the traditional peak seasons for demand.

2.3 With the arrival of winter in northern China, the power, coal and natural gas shortage is further aggravated.

2.4 The Chinese government controls the over-speculation of coal and other products at the macro level.