Get the latest insights on price movement and trends analysis of Urea Formaldehyde Resins in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
Urea Formaldehyde Resins Price Trends for First Half of 2023
The Asia-Pacific region witnessed high demand for urea formaldehyde resins and restricted supply that helped its prices to shoot up. Another major cause of this incline was the revival of Chinese market activities after the upliftment of COVID-19 restrictions and the Lunar New Year season. However, in the second quarter, the prices moved feebly due to the lack of support from the feedstock market. The strong supply of urea formaldehyde resins in the market while the demand from downstream industries declined drastically, causing the price trends of urea formaldehyde resins to fall consistently.
In the first and second quarters of 2023, the prices of urea formaldehyde resins had a gradual decline. In the first quarter, the cost of feedstock materials depreciated by almost a double-digit percentage, affecting the price trends of urea formaldehyde resins negatively.
In the second quarter, in addition to the poor performance of the feedstock prices, the demand from the downstream industries remained subdued from both domestic and international buyers as the rates of consumption from consumers took a hit. The rates of export to overseas nations also took a hit, and due to that, the price trends of urea formaldehyde resins moved southwards.
In North America, the price trends of urea formaldehyde resins was hit by the weak performance of the feedstock market in the first quarter of 2023. In addition to this, strong supply and low rates of procurements ultimately caused the level of inventories to shoot up, causing a reduction in urea formaldehyde resins prices.
In the second quarter, the decline was much more prominent in the months of May and June, as demand from the furniture and wood industries was almost negligible. And on top of this, the crisis in the banking sector raised the levels of inflation and interest, hampering the prices of urea formaldehyde resins.
According to Procurement Resource, the price trends of Urea Formaldehyde Resins is expected to showcase a negative trajectory as the purchasing potential of buyers is declining, and high uncertainties in the economic conditions are estimated to affect the urea formaldehyde resins prices negatively.
Urea Formaldehyde Resins Price Trends for Second Half of 2022
Poor demand for urea formaldehyde resins in the Asia-Pacific region led to a fall in their price trends. The downfall in the prices of fertilizers was the major contributor to this subdued demand for urea formaldehyde. An ample supply of urea formaldehyde resins in the region and low rates of procurement ultimately resulted in a decline in the price trends of urea formaldehyde resins in the last two quarters of 2022.
The third quarter of 2022 was favorable for the movement of the prices of urea formaldehyde resins in Europe. In this region, the rates of production of urea formaldehyde resins were affected by the costs of natural gas due to delays in shipments and the ongoing Russia-Ukraine crisis. However, in the fourth quarter, the price trends were hit by surplus availability of the product, low rates of procurement, and fluctuating freight charges. In addition to this, Russia imposed high quotas on imports that further increased the availability of the product in the region, hampering the growth of the urea formaldehyde resins price trends.
The price trends of urea formaldehyde resins declined gradually in the third quarter of 2022 and steeply in the fourth. The major cause of this decline was the poor purchasing potential of buyers during this time frame. In addition to this, the downstream sector was also affected by declined rates of exports as the number of inquiries from the overseas players failed to provide the urea formaldehyde resins market the required support.
According to Procurement Resource, the price trends of Urea Formaldehyde resin is estimated to decline due to lackluster demand from downstream industries and feeble performance of the global markets.
Urea Formaldehyde Resins For the First Half of 2022
Due to China and India being the major manufacturers of urea formaldehyde resins and having the largest consumer bases, the Asia Pacific region currently has the largest market for urea formaldehyde, and this trends is anticipated to last into the forecast period. The need and demand for food are growing along with the population, and as a result, agriculture operations are continuously evolving. The Asia-Pacific region will use more urea-formaldehyde resins as a result of these changes, which depend on fertiliser performance and efficiency.
The urea formaldehyde market is anticipated to experience tremendous growth in North America, with the US predicted to lead the majority of regional expansion. Various uses in architecture and construction are sustaining urea formaldehyde market sales in the US. As observed from the urea formaldehyde price trends, North America witnessed an upward slope in Q1 of 2022.
Due to an increase in construction activity, nations like Brazil and Mexico are also generating a significant amount of demand for urea formaldehyde. Additionally, these nations' automobile industries are also experiencing a major increase, which will create favourable conditions for market growth. As a result, urea formaldehyde resins prices are witnessing an upward trends.
For the Fourth Quarter of 2021
In Asia Pacific, formaldehyde prices increased in October before declining in the final two months of the quarter. Rising natural gas prices added to the expense of feedstock methanol during the first half of Q4, resulting in a sharp increase in downstream product pricing.
The price decline in the later part of Q4 was mostly due to lower methanol prices and an influx of imports from China. In the fourth quarter of 2021, urea prices also rose. Urea formaldehyde resin prices increased due to growing feedstock prices.
In Europe, urea prices improved significantly in the fourth quarter. Its price in European markets rose due to higher feedstock ammonia prices, increased input costs due to the energy crisis, and rising natural gas prices.
Moreover, increased freight rates and a scarcity of shipping containers played havoc on its prices in the third quarter. However, prices of formaldehyde fell in Q4 compared to Q2 and Q3 as a result of ample supply and weakening demand in Germany, Belgium, and other European countries. As a result of the lower methanol costs, the price of formaldehyde has also dropped. Demand for formaldehyde in the resin industry has also decreased.
Due to a large increase in the price of raw materials, the price of urea surged in the fourth quarter of 2021 in the North American region. However, when compared to Q2 and Q3, formaldehyde prices remained on the low side. Feedstock methanol prices declined in the United States in the fourth quarter of 2021, owing to a slowdown in industrial applications and fuel consumption, as well as an increase in Omicron instances.
For First, Second and Third Quarters of 2021
Prices of urea have rose steadily across the Asian market, owing to increased demand from both the domestic and foreign fertiliser markets. Prices in China spiked in Q1 2021 as a result of a partial lockdown in response to an increase in daily COVID-19 cases. While this had little effect on urea production in the country, it did cause problems with road transit and exports.
Meanwhile, demand for urea in India improved from the previous quarter, and limited supply sustained its pricing. Due to an uptick in industrial activity across the region, demand for formaldehyde remained steady from its derivatives sectors like plastics and resins at first. However, methanol supply limits resulted in a formaldehyde shortage in the domestic market. The resin market followed the path of its feedstock and showed a downward trends in its prices.
In the second quarter, the price of urea in India rose due to increased seasonal demand from both the domestic and international markets. However, attitudes on the regional market for formaldehyde were divided across Asia Pacific. After years of steady increases, the price of the resin dropped significantly in August, aided by lower raw material formaldehyde rates in the market.
During the third quarter of 2021, the Asian market saw a major increase in the price of urea. The Chinese resin industry saw consistent demand for the compound, but the sector also reported low material supply. The lack of imports was partly owing to global agri-commodity markets' overall strength, China's temporary suspension of exports, and Western economic sanctions on Belarus. In the third quarter, formaldehyde prices were relatively stable.
During the first quarter of 2021, the European urea market saw steady domestic & global demand. The resins industry boosted its need for formaldehyde, but lower supplies created market tensions. Due to a lack of feedstock formaldehyde in the markets, urea formaldehyde resin prices increased significantly.
Due to the slow rate of economic improvement in the second quarter, demand for urea-formaldehyde remained modest to low. The average price stayed the same.
Urea formaldehyde resin prices surged sharply in the European markets in Q3 2021, owing to strong seasonal offtakes and rising fertilizer demand.
In the first quarter of 2021, demand for feedstock urea climbed in the North American region, but prices remained high due to scarcity. Following a protracted winter storm and trade disruption, formaldehyde prices increased as well. The combination of these factors pushed up the price of resins on the market.
During the second quarter, the price of formaldehyde in North American markets fell overall. The resin manufacturers didn't benefit much from the cheap costs because demand was suppressed as a result of their pact. In this quarter, the cost of urea-formaldehyde was low.
In the third quarter of 2021, the market price of formaldehyde increased significantly. This was caused by its shortage in the regional markets. Feedstock urea received mixed reviews. However, as Q3 came to a close, the urea market gained traction as feedstock ammonia began to rise in response to rising natural gas costs. Overall, the cost of formaldehyde resin increased during the quarter.
For the Year 2020
China's urea shipments increased dramatically at the start of the fourth quarter. However, with the start of the Rabi season in India, its demand increased dramatically. The growing demand for urea in fertilisers limited the supply of this critical feedstock for resin production, raising urea formaldehyde resin prices.
In the fourth quarter of 2020, formaldehyde prices in Europe increased significantly. As a direct result of this price increase, the cost of resins has also risen.
Due to lower demand at the conclusion of the agricultural season in the United States, supply of feedstock urea remained abundant in Q4. As harvesting drew to a conclusion, the overall rate of demand began to slowdown. Meanwhile, the cost of the formaldehyde skyrocketed. The combination of these factors resulted in an increase in urea formaldehyde resin prices in US markets.
Procurement Resource provides latest prices of Urea Formaldehyde Resin. 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.
Urea formaldehyde resins or urea-methanal is a non-transparent thermosetting resin or polymer. It is manufactured from urea and formaldehyde.
|Product Name||Urea Formaldehyde Resins|
|Synonyms||Poly(methi(bis(hydroxymethyl))ureylene)amer, Polynoxylin, Polyoxymethylene urea|
|Industrial Uses||Particle Board, Medium Density Fiberboard, Plywood, Wood Adhesive|
|Supplier Database||Hexion, BASF SE, ADVACHEM, Kronoplus Limited, Georgia-Pacific Chemicals|
|Region/Countries Covered||Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America: United States and Canada
Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
|Currency||US$ (Data can also be provided in local currency)|
|Supplier Database Availability||Yes|
|Customization Scope||The report can be customized as per the requirements of the customer|
|Post-Sale Analyst Support||360-degree analyst support after report delivery|
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
A commonly used method for producing formaldehyde from methanol is followed by another method in which the formaldehyde is first reacted with urea. The resulting product is then polymerized to yield the Urea Formaldehyde Resin.
The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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