During late November 2025, melamine prices in Asia increased slightly, supported by firm feedstock urea, while European prices declined amid ample supply and weak demand. Limited downstream activity, sluggish construction sectors, and cautious buying kept the overall market momentum muted despite the mild cost support in China.
In China, melamine prices increased by 0.6% on the back of firmer urea costs, which have seen declining inventories and strong winter stockpiling, providing mild cost support. Declining domestic urea stocks and robust foreign inquiries reinforced the bullish trend, underpinning the slight price rebound in the Asian melamine market.
Despite the price uptick, melamine downstream demand remained weak. Factories across wood-based panels, coatings, and molding powder sectors continued cautious purchasing, mostly on a “buy-as-needed” basis, limiting overall consumption.
End-user construction activity contracted by 49.1% last mob, reflecting subdued project execution and further weighing on melamine demand.
Feedstock urea moderate industrial demand supported northeastern China’s double Compound Fertiliser plants in buying bulk granular Urea for Winter Reserves. The ongoing national compound fertilizer operation rate was at 33.98%, an increase of 2.86% from the previous week and an increase of 1.38% from the same week last year. Therefore, this steady purchase has supported the continued processing of downstream.
On the supply side, daily urea production in China averaged around 202,000 tons, up 2,100 tons week-on-week and 14,600 tons year-on-year, with operating rates at 85.3%. Inventories fell to approximately 1.444 million tons, down 3.86% week-on-week and 1.16% year-on-year, reflecting active export and industrial demand that indirectly supported melamine.
Melamine export activity remained steady, with manufacturers scaling back input purchases only moderately, as downstream companies continued limiting new orders. This cautious buying further reinforced the slight stability in domestic melamine prices, despite generally weak market momentum.
In Europe, melamine prices declined by 4.4% during late November 2025 due to high inventories and low demand. The eurozone construction sector remained weak, with broad-based reductions in residential, commercial, and civil engineering projects. Low downstream activity in coatings and wood-based panels weighed on pricing.
High energy costs and competition from Asian suppliers coupled with US tariffs, further constrained European manufacturers’ competitiveness. Buyers restricted procurement to immediate needs, leaving trade activity stagnant and reinforcing the ongoing price decline.
Weak construction sectors, and cautious downstream purchasing dominate market dynamics, limiting the scope for strong upward price movements in the short term.
Melamine prices may increase in the coming weeks due to limited availability from year-end plant maintenance and continued industrial and agricultural stockpiling in Asia. Downstream buyers may cautiously adjust purchasing strategies, providing mild upward support amid otherwise subdued market momentum.
