Melamine Price Trend and Forecast

Melamine Regional Price Overview

Get the latest insights on price movement and trend analysis of Melamine in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Melamine Price Trend for the Q4 of 2024

Asia

In Asia, particularly China, the melamine market faced significant pressure throughout the fourth quarter of 2024. The primary factors driving this trend included weak demand from downstream sectors like coatings, laminates, and plastics. High inventories and an oversupply situation worsened as new production capacities from plants like those of Xinjiang Yankuang and Shaanxi Longhua entered the market.
 

Melamine Price Chart

Please Login or Subscribe to Access the Melamine Price Chart Data
 

This surge in supply, coupled with low consumption in the construction sector due to weak real estate investment, put further strain on the market. Additionally, reduced procurement by downstream manufacturers due to limited demand exacerbated the oversupply issue. While feedstock prices, such as urea, showed slight fluctuations, the overall impact on production costs was minimal, maintaining a downward pressure on prices.

Europe

In Europe, melamine prices also saw a decline during the same period. The supply situation improved with facilities like LAT Nitrogen’s Linz plant increasing run rates, but weak demand from key industries such as coatings and laminates continued to hinder market recovery. Despite stable urea prices, the global oversupply trend led to intense price competition. Producers attempted destocking measures, but this was not enough to counter the soft demand, which kept prices under pressure throughout the quarter.

North America

In North America, the market experienced a relatively stable environment with modest declines. The production capacity remained steady, and while demand was slightly better than in Asia and Europe, it was still weak, especially in the construction-related sectors. The North American market remained balanced, but with no significant upward movement, reflecting the global supply-demand imbalance.

Analyst Insight

According to Procurement Resource, the Melamine market in early 2025 is expected to remain under pressure with limited demand recovery. Price fluctuations are anticipated due to ongoing supply-demand imbalances, though modest improvements in downstream demand could help stabilize prices.
 

Melamine Price Trend for the Q3 of 2024

Asia

The melamine market in Asia, particularly in China, has experienced a mixed trend. The benchmark price of melamine has declined slightly, with the market atmosphere being average and the overall fundamentals remaining weak. This can be attributed to factors such as the recovery of previous maintenance equipment, the gradual production of new capacity, and the accumulation of enterprise inventory, leading to increasing supply-side pressure.

Despite these challenges, there are certain favourable factors in the supply and demand dynamics that could provide some support to the market.

Europe

The European melamine market has faced relatively more stability compared to North America, but it has still encountered some headwinds. The trading atmosphere has been mild, with new orders purchased mainly to meet immediate needs. However, demand from downstream sectors has remained sluggish, mirroring the trends observed in North America. While the market has not seen the same level of price decline as in North America, the European melamine market has also faced challenges in balancing supply and demand dynamics.

North America

The melamine market in North America has experienced a continued decline in prices. This can be largely attributed to persistently low demand, particularly from the construction sector, which has faced challenges due to factors such as heavy rains, severe weather, and hurricanes. The slowdown in construction activities has led to excess supply, as manufacturers have struggled to find buyers for melamine, resulting in high inventory levels. The sluggish demand from downstream sectors like plywood, laminate, and furniture has further exacerbated the situation, with global lumber prices also falling significantly.

Analyst Insight

According to Procurement Resource, the price trends for Melamine are likely to remain under pressure in the coming months given the current state of market dynamics and other macroeconomic factors.
 

Melamine Price Trend for the Q2 of 2024

Asia

In Q2 2024, the melamine market in China experienced steady momentum with slight month-on-month fluctuations. The market was influenced by rising raw material costs, particularly urea, which supported melamine prices. Supply constraints due to maintenance shutdowns also contributed to this trend despite some weak downstream demand. Early in the quarter, commodity demand was primarily driven by immediate demand accompanied by low buying activity for high-priced raw materials. Although the price of urea continued to rise, exerting cost pressure on melamine producers, the overall market atmosphere remained subdued.

The mid-quarter saw some support from export orders, which helped stabilize prices despite the weak domestic demand. However, as the quarter progressed, the market showed signs of weakening, with downstream transactions at higher prices being limited. The melamine market faced ongoing cost pressures from high urea prices, while domestic demand remained sluggish, leading to a market characterized by cautious trading and slight downward pressure.

Europe

The northward movement of melamine prices was observed only in the latter phase of the second quarter; before that, the market mostly bore a stagnant tone. The initial stability of the market was based on the balance of supply and demand sectors of the market. However, as the quarter progressed, the procurement rates of the downstream industries surpassed domestic production. Meanwhile, the shipment arrival from Asian countries also declined, widening the supply-demand gap of the commodity. Additionally, the rise in freight charges and transportation costs diverted the interest of end-user industries toward the domestic markets.

North America

In Q2 2024, melamine prices in the US continued their upward trend, driven by rising demand from the construction and building materials sectors, particularly from downstream industries such as furniture and laminates. The high prices of feedstock urea, fueled by strong demand in the fertilizer market, also contributed to this trend. The reduction in urea exports from China redirected international buyers to the US, further intensifying demand.

Limited domestic supply and reduced inventory levels accelerated the price increases, while the expansion of manufacturing activities signaled strong sectoral growth. The US construction sector surpassed the expectations of both traders and manufacturers, leading to significant growth in the market momentum and further boosting melamine demand. These factors collectively contributed to the sustained upward trajectory of melamine prices, with market dynamics indicating continued strong demand and a positive outlook for the foreseeable future.

Analyst Insight

According to Procurement Resource, the price of Melamine is expected to surge in the next quarter as well as the exceeding end user demand and limited global production volumes as well as trading volumes will lead to a surge in pricing patterns.
 

Melamine Price Trend for the Q1 of 2024

Stay updated with the latest Melamine prices, historical data, and tailored regional analysis
 

Asia

During Q1 of 2024, the Chinese melamine market showcased prolonged sluggishness due to reduced demand from downstream sectors, driven by factors such as decreased procurement activity during the Lunar New Year holiday and tepid demand for urea. Additionally, the oversupply issues, compounded by disruptions in overseas demand and low energy prices, further contributed to the bearish sentiments of the market.

The market conditions were further deteriorated by cautious purchasing which persisted amid uncertainties in the economic outlook and challenges in the construction sector. The sluggish property market and constrained consumer spending budgets further raised the concerns of melamine producers as well as traders. However, the rise in the government initiatives over improvements in demand of melamine and construction activities, towards the end of the first quarter offered a positive outlook for the market.

Europe

The melamine price trend in European countries attained stagnancy after surging in the previous quarters. During the first quarter, the melamine price trend was supported by the increased demand for furniture and disruptions in global trade routes caused by attacks in the Red Sea. However, feedstock urea prices slightly decreased with the onset of the off-agriculture season, extending an adverse impact on the melamine market. The rising instances of port strikes and labor shortages amid the ongoing geopolitical tensions due to the Israel-Hamas crisis raised the in-house inventories of melamine.

This forced the traders to opt for offering discounts on bulk purchases, leading to a reduction in their profit margins. Additionally, the security risks in the Red Sea led to higher insurance premiums and freight charges, raising the overall cost of transport. Despite these challenges, melamine demand remained above the expectations of the market, driven by supply disruptions and increased industrial activities, particularly from the automotive sector.

North America

In the first quarter of 2024, melamine prices in the USA experienced a significant and steady increase with the help of a positive outlook from consumers and downstream industries. The surge in prices was primarily fueled by rising demand from downstream sectors such as furniture, laminate, and construction materials. This heightened demand was accompanied by elevated feedstock urea prices, further driving up the price trend of melamine.

The limited domestic supply of the commodity in the region strained its availability, leading to reduced inventory levels and upward pressure on prices. The expansion of manufacturing activities in the US also contributed to this price hike, reflecting robust growth in the sector.

Analyst Insight

According to Procurement Resource, the price trend of Melamine is expected to improve gradually in the upcoming months with the cost support from the feedstock industries and rising demand dynamics of the downstream industries.
 

Melamine Price Trend for the October - December of 2023

Asia

At the beginning of the fourth quarter, the melamine prices were relatively stable, but as the quarter progressed, the melamine price trend began to oscillate. However, the quarter ended on a positive note, given the favorable dynamics of the market. Since November, the number of orders of melamine from the domestic and overseas industries improved gradually. Moreover, when the uncertainties in the cost of urea rose, and the manufacturing sector slowed down, the traders had room to increase the melamine prices.

Europe

Melamine prices in the European market surged mainly towards the end of the fourth quarter as they were driven by a rise in furniture demand and disruptions in global trade routes. Germany, which is a major exporter of furniture, was able to maintain its consistent rise in melamine prices despite a slight decrease in urea costs. Other factors that played in favor of melamine market trend were the elevated number of queries from the laminates, coatings, and wood adhesives sectors of the construction industry.

North America

The rise in uncertainties in the prices of feedstock urea did not prove to be a major hindrance in the upward journey of melamine price trend. The positive outlook of the market was based on high demand from the construction sector which in turn itself was fueled by increasing government initiatives.

As the elections approached closer in the US, the spending appetite of the government resulted in easing inflationary pressure on the manufacturing industries. There were, however, some month-to-month fluctuations in the market conditions, but overall, the melamine prices faced northwards. 

Analyst Insight

According to Procurement Resource, the price trend of melamine are estimated to remain positive in the coming quarter, given the current market dynamics and pricing fundamentals.
 

Melamine Price Trend for the July - September of 2023

Asia

In the Asian countries, after struggling in the past quarters, the melamine market witnessed a significant inclination in the third quarter of 2023. The prices rose on account of the rise in the cost of feedstock materials. On the other hand, the demand from the downstream industries did not witness any severe inclination but remained stable throughout the quarter. The overseas industries also raised their number of inquiries, which in turn helped in the rise in the melamine price trend.

Europe

The European countries enjoyed an increase in the cost of production and demand for melamine in Q3’23. The upswing of the melamine price graph was also a positive consequence of increasing feedstock prices and a rise in upstream prices. However, the European countries struggled with the high uncertainties in the economic region due to which the industrial sector faced several difficulties. In addition to this, the hike in energy prices, along with rates of interest charged by banks, pushed the prices of melamine in an upwards trajectory.

North America

In North America, the furnishing and coating industries increased their procurement rates of melamine, and the infrastructure activities surged, affecting the melamine price trend positively. The housing sector also witnessed a significant inclination that further supported the demand for melamine. However, the steady inflation rates and limited supply of raw materials challenged the growth of the melamine market, but overall market sentiments remained in favor of melamine prices.

Analyst Insight

According to Procurement Resource, the price trend of Melamine are estimated to oscillate with the rise in demand but are expected to struggle due to the pressure of inflation.
 

Melamine Price Trend for the First Half of 2023

Asia

In the first and second quarters of 2023, the market of melamine struggled to maintain its pace as its growth trajectory was negatively impacted by rising inventory stocks and consistently declining demand.

In addition to this, the weak support from the feedstock sector and the feeble condition of the furnishing and coating sectors pushed the prices of melamine in a southwards direction. Due to the overall plunging market sentiments, the traders had to offer discounts on bulk purchases, which in turn disrupted the trading sentiments and the price trend of melamine.

Europe

The prices of melamine in the first quarter of 2023 suffered from the falling purchasing potential of buyers and lower trading rates. However, the dynamics changed in the second quarter as the market activities of melamine gained momentum and helped its prices to surge.

The demand from the downstream industries was moderate, while the rise in feedstock prices raised the cost of production, which in turn helped the prices of melamine to surge. Further, the inclined interest rates, improvement in the market activities of construction and coatings, and a high number of inquiries from the international sectors helped in the growth of the melamine price trend.

North America

In the first quarter of 2023, the limited trading activities in the North American region led to a decline in the price trend of melamine. Due to weak trading and demand for melamine, the level of stockpiles rose, adversely affecting the prices of melamine. In the second quarter, however, the cost of production rose on account of the rising cost of feedstocks, and moderate demand from the downstream industries supported the growth in the prices of melamine.

Analyst Insight

According to Procurement Resource, the price trend of Melamine is estimated to fluctuate as the demand and overall global trading sentiments of the melamine market seem weak.

Procurement Resource provides latest prices of Melamine. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.