During late September 2025, Melamine prices remained under pressure globally due to weak demand and continued high supply. In Asia, melamine prices continued to decline due to rapid capacity expansion particularly in the China and weak domestic demand. In the USA and Europe, melamine prices are declining due to weak demand in the downstream industries due to slowdown in the end user construction sector.
In the China, Melamine prices continued to decline on the back of weak cost support from the feedstock urea, high supply and low demand in the downstream industries.
Feedstock urea prices remained low as the Chinese Urea market experiencing the oversupply. Some Urea plants which went under maintenance previously, have resumed the production and creating the oversupply in the Chinese market. On the demand side, demand in the agricultural sector stayed weak and downstream with companies purchasing cautiously and creating a subdued market environment.
On the supply side, the operating rate for melamine has remained relatively high, between 65-70%, despite some temporary plant shutdowns, which has increased spot supply. As shipments have slowed compared to production, inventory levels are climbing, putting downward pressure on melamine prices. With demand showing no signs of recovery, manufacturers are compelled to reduce prices and offer discounts to secure orders.
On the demand side, demand in the downstream laminate, plywood and coating remained limited due to slowdown in the China’s Construction sector. China’s property market showed further strain, with resale home prices dropping. Buyers continued to adopt a cautious, on-demand procurement strategy, avoiding bulk replenishment. The export market remained sluggish, with limited new orders and adjustments to international tariff policies further dampening trade flows.
In Europe, melamine demand in the panel, laminate, and coating sectors remained weak, reflecting a downturn in construction and industrial segments. The construction industry stayed weak, with housing experiencing the sharpest decline recently. Building permits fell, and construction dropped recently by 1.8. U.S. tariffs on EU goods disrupted trade, leading to a projected 5% earnings decline for European chemical firms in Q3.
In the USA, Melamine demand in the U.S. remained low, particularly in downstream panel, laminate, and coating applications, which are closely tied to construction and industrial activity. In August, construction jobs fell by 7,000, and chemical construction spending declined 0.8%, reflecting uneven demand, pressured by rising material costs linked to new tariffs on steel, aluminum, and copper. According to the Associated Builders and Contractors, over 80% of contractors received supplier notices about price hikes, with many warnings of delays or cancellations.
As per the ChemAnalyst, Melamine prices in Asia are likely to decrease as market activity pauses for holidays, with buyers concentrating on existing contracts and pre-holiday inventory levels weighing on prices. In Europe, melamine prices may increase due to restocking for winter contracts and seasonal manufacturing. In the USA, anticipated winter heating needs could increase natural gas prices, raising production costs while seasonal demand boosts market sentiment.
