Melamine prices stayed low across major global markets during late July 2025. Excess supply and low demand kept trading quiet, with inventories building as downstream industries bought only what they needed. Producers kept plants running, but the imbalance between supply and demand pushed the market further into a bearish phase.
In China, melamine supply grew as manufacturers raised operating rates, while downstream sectors failed to absorb the output.
Demand stayed muted, with wood-based panels, coatings, and molding materials operating at low rates as construction activity remained soft. Real estate sentiment weakened further with declining second-hand housing prices across major cities, curbing panel demand.
Confidence in China’s market stayed weak as export orders slowed and more melamine supply is expected later in 2025 from plants such as Henan Tianqing and Shaanxi Longhua. Traders remained cautious, keeping offers flexible but avoiding long-term deals as fundamentals showed no sign of improvement.
Feedstock Urea prices stayed low, further reducing Melamine production costs. Urea market values weakened as futures and spot prices declined amid muted trading. The urea market flow became weaker, as futures and spot prices declined, with little encouraging trading seen. Supply was steady, with downstream fertilizers only topping up for immediate needs, keeping overall flow thin.
In South Korea, melamine demand remained weak, with the panels, coatings, and molding material sectors accepting only limited volumes as private housing projects halted and unsold inventories picked up. Rising construction costs and weak corporate confidence discouraged new investments.
In India, monsoon rains delayed construction, curbing melamine demand for laminates, panels, and adhesives. Labor shifts to farming and weather disruptions further slowed projects, keeping downstream activity low.
In Europe, demand for melamine stayed low as laminates, engineered wood, and coatings industries faced reduced orders amid a sharp slowdown in housing and commercial construction. Buyers focused on contractual needs while avoiding speculative replenishment, leading to rising inventories and deepening the bearish tone across the region’s trading environment.
In North America, particularly USA, Residential construction fell, nonresidential activity stagnated, and manufacturing investment weakened. This has slowed melamine consumption across downstream laminates, engineered wood, and coatings. Buyers relied on existing inventories, avoided bulk restocking, and limited spot trades, leaving overall sentiment fragile and market activity subdued.
In Brazil, melamine demand stayed weak as high interest rates, labor shortages, and rising input costs stalled construction activity. Laminates, engineered wood, and coatings sectors absorbed minimal volumes, with buyers avoiding speculative purchases.
As per the ChemAnalyst, Melamine prices are likely to further decline as the oversupply situation continues and demand from downstream sectors weakened. An increment in capacity across Asia shores, including the upcoming output from Henan Tianqing, will intensify supply pressure. Traders are likely to avoid forward commitments, while summer shutdowns and holidays in Europe and the U.S. limit downstream activity.
