In the U.S., melamine prices have fallen following mid-December 2025 due to declining urea prices (a key feedstock for melamine) and decreased domestic demand. As there is still an oversupply of melamine in the market, market sentiment has also been weak and has not improved significantly due to lack of increased consumption of downstream products.
Melamine pricing decreased 0.5% during the third week of December following the m-o-m declined. This decrease was primarily caused by an oversupply of melamine, as the amount of melamine produced in the domestic market was considered to be stable during this time period and there were no plant closures or significant production interruptions reported in the domestic market during the week.
On the feedstock side, urea prices in the U.S. stayed weak in recent weeks due to slowing demand from key sectors. With corn and wheat harvesting largely, fertilizer demand declined, leading to reduced urea consumption. Producers benefitted from low natural Gas prices, and all plants' inventories were ample due to autumn maintenance completion; thus, there was a large supply of Urea.
On the demand side, there was a low level of melamine consumption by wood-based panel manufacturers, coating formulators, and producers of molding compounds due to weak activity in the end-user construction sector. Downstream demand remained limited due to the lack of purchasing interest across almost all major consuming industries.
Meanwhile, competitively priced imports from Asia, particularly China, further pressured the U.S. melamine market. China’s rapid capacity expansion continued to impact global supply dynamics. By the end of 2025, China’s melamine capacity reached approximately 2.6 million tons, with an additional 940,000 tons added during the year. This expansion is expected to exert sustained downward pressure on global melamine prices.
The U.S. construction sector remained depressed. Builder sentiment for newly built single-family homes stayed negative for the twentieth consecutive month, despite a slight improvement recorded in December. Persistent labor shortages and elevated input-cost risks continued to constrain construction activity heading into 2026.
Year-end destocking efforts and cautious budgeting among downstream consumers further limited spot market participation. Buyers remained hesitant to commit to new purchases, keeping overall melamine offtake weak and reinforcing a stable but low-momentum market environment.
According to the reports from the market, approximately 66% of builders in America provide incentives to encourage buyers. During November 2025, home sales in the U.S. declined by 1% year on year in November 2025, showing that the housing market is still facing challenges.
Builders also reported that high material costs linked to tariffs have negatively impacted on construction activity, while rising housing inventories have increased competition among newly built homes.
According to ChemAnalyst data, melamine prices are likely to decline further due to festival season, year-end destocking and severe winter that pause the activities in the construction sector. Traders are expected to offer additional incentives to clear inventories and stimulate sales.
