US UFC Prices Fall 3% in May Amid Weak Resin Demand and Lower Urea Costs

U.S. Urea Formaldehyde Concentrate (UFC) prices moved lower during May **** as softer demand from resin manufacturers and declining feedstock costs weighed heavily on market sentiment. The UFC market remained under pressure throughout the month as engineered-wood producers reduced purchasing activity, inventories stayed comfortable, and suppliers adopted more competitive pricing strategies to secure sales.

According to ChemAnalyst data, the UFC-** DEL US Gulf spot price averaged USD *,***/MT in May, compared with USD *,***/MT in April, reflecting a decline of approximately *.** month-on-month. The decrease in UFC prices was primarily driven by weaker consumption from key downstream sectors and easing production costs.

At the beginning of May, purchasing activity for UFC slowed after many engineered-wood mills completed their spring production and inventory build programs. Manufacturers of oriented strand board (OSB), medium-density fiberboard (MDF), particleboard, plywood, and furniture products reduced procurement volumes as immediate...