Melamine paper prices in Asia fell in May 2025, driven by weak demand from downstream sectors and cheaper melamine feedstock costs. As production picked up after long holidays in north Asia during the early May, supply outstripped demand, pushing prices down in China, South Korea, and India.

Melamine paper prices in China dropped as the feedstock melamine values remained under pressure amid low urea feedstock prices and slow demand from the downstream such as laminate, coating, and board manufacturers. Production resumed post-holiday at key melamine plants, raising supply and reducing support for melamine-based products. The construction-linked board and panel industry continued to underperform, with slow new home transactions and reduced real estate investment curbing melamine paper usage.

Melamine paper manufacturers adopted cautious operating strategies to avoid overstocking. Limited downstream offtake, especially in housing-related applications, caused inventory to accumulate modestly.

Exports also faced challenges, with soft buying from India and the Middle East limiting shipments. Global demand stayed weak, and tariff uncertainties dampened exporter confidence. China’s manufacturing mood remained gloomy as export orders shrank and impacting the melamine paper demand.

However, recent U.S.–China trade tension relief, with mutual tariff cuts starting mid-May, sparked some optimism. Producers hoped for better trade flows and downstream activity soon, though they stayed cautious.

South Korea’s melamine paper market continued to face demand weakness, tied to sluggish activity in the downstream housing and interior panel industries. Rising construction costs and uncertain returns have discouraged new house project starts, prompting delays in major developments like The Parkside Seoul, Banpo the H Class, and Jamsil LEEL. This slowdown has sharply reduced melamine paper consumption across infrastructure and housing-linked applications.

Trade flows were further hindered by South Korea’s falling exports and continued tariff pressure from the U.S. Domestic buyers avoided large-volume contracts, instead securing limited spot quantities.

In India, melamine paper prices declined marginally amid low procurement from board and laminate manufacturers. Construction equipment sales at Escorts Kubota fell sharply by 29.9%, reflecting weak demand amid project delays, early monsoon disruptions, and labor shortages as farmers prepared for upcoming Kharif crop activities. These factors disrupted project timelines and reduced demand across melamine-based end-use applications.

Indian buyers maintained minimal inventories and focused on contract obligations rather than placing new orders.

As per the ChemAnalyst, limited supply of melamine paper is expected as regulatory inspections and production safety checks in parts of China may tighten availability and eased trade tension between US-China, potentially offering mild price support in coming months.