For the Quarter Ending March 2025
North America
Throughout Q1 2025, the melamine market in North America exhibited a mixed trend. January saw stable prices as weak downstream demand and ample inventories kept the market subdued despite seasonal cold weather and modest gains in urea costs. Project delays across the construction sector and holiday season inactivity further restrained trading. In February, prices rose slightly as upstream urea costs increased, and non-residential construction lent some support to laminate and coatings demand. While residential activity remained soft, a gradual uptick in order volumes and improved business sentiment led to modest procurement.
By March, melamine prices edged higher again, driven by seasonal urea demand and improving downstream offtake in laminates, coatings, and molding compounds. U.S. manufacturing activity showed signs of recovery, supporting steady production.
Although long-term construction outlook remained cautious due to declining permits and completions, housing starts and employment data provided short-term momentum. Overall, higher input costs and gradual demand recovery contributed to the firming price trend toward quarter-end. Melamine prices in the U.S. closed Q1 2025 at USD 1,793/MT FOB Texas.
APAC
Throughout Q1 2025, the melamine market in APAC followed a mixed trend. In January, prices declined slightly due to weak feedstock urea costs, subdued downstream demand from laminates and coatings, and cold weather disruptions that stalled construction activities. Export volumes also declined sharply as purchasing interest from key regions like India and Vietnam weakened. Despite increased production capacity from new facilities, manufacturers-controlled output to manage high inventories and stabilize prices. In February, prices edged higher, supported by stronger urea costs amid rising spring farming demand. However, holiday-related shutdowns and limited export activity kept market momentum muted. By March, prices increased further due to ongoing supply-side constraints, including planned maintenance at key production facilities. Although demand remained moderate, with some improvement in downstream industries, sluggish real estate activity and cautious export procurement kept gains limited. With rising input costs and controlled production, the melamine market showed signs of strengthening, though the broader sentiment remained cautious. Melamine prices in China closed Q1 2025 at USD 808/MT FOB Qingdao.
Europe
Throughout Q1 2025, the melamine market in Europe followed a mixed trajectory. January saw prices edge down due to weak demand from downstream laminates and coatings, combined with holiday season slowdowns and rising competition from low-cost Asian imports. Construction-related activity remained minimal amid cold weather and delayed projects, further reducing melamine consumption. In February, prices rose slightly, supported by firmer urea costs and modest restocking; however, the uptrend was limited as demand stayed sluggish, especially in the coating and laminate sectors. Germany’s manufacturing output remained under pressure, while ongoing geopolitical and tariff-related uncertainties suppressed export confidence. By March, melamine prices resumed their decline amid continued demand weakness and stable feedstock costs. Construction and civil engineering sectors remained subdued across the eurozone, and poor industrial sentiment hindered any large-scale procurement. Port congestion in Hamburg, coupled with export delays, added logistical strain without stimulating trade activity. Overall, oversupply, high energy costs, and soft downstream demand defined a challenging market landscape. Melamine prices in Germany closed Q1 2025 at USD 1,550/MT FOB Hamburg.
For the Quarter Ending December 2024
North America
In Q4 2024, the North American melamine market experienced a mixed trend. October saw rising prices driven by tight supply due to Tropical Storm Francine disruptions, low inventories, and strong downstream demand from the recovering U.S. construction sector. Rising feedstock urea prices, influenced by geopolitical tensions, further contributed to the upward pressure. By mid-October, prices increased further due to stronger urea and natural gas costs and robust downstream procurement.
In November, prices slightly increased after previous gains, attributed to steady downstream procurement despite improved supply and reduced urea prices. Sufficient inventories and cautious market sentiment moderated price movement. Growth in the construction sector supported demand, though other applications saw subdued activity.
In December, prices remained stable, gradually softening due to improved domestic supply and competitive APAC pricing. Subdued downstream demand, particularly from the construction sector impacted by rising mortgage rates, hurricane disruptions, and severe winter weather, influenced market sentiment. Manufacturers focused on destocking, and the holiday season further muted activity. Ending the quarter, the price for melamine in USA was recorded at USD 1,776/MT FOB Texas.
APAC
In Q4 2024, the APAC melamine market experienced significant volatility. October saw prices decline due to weakened Asian market conditions, contracted demand, oversupply, and lower urea feedstock costs, worsened by China's struggling construction sector. In November, prices surged due to low inventory levels before experiencing a decline amid persistent oversupply and sluggish downstream demand, despite increased production capacity. This surge was short-lived as market fundamentals reasserted themselves.
December saw further price declines due to weak urea support, muted downstream demand like coating, laminate etc driven by a continued construction slowdown, and cautious purchasing strategies among buyers. Overcapacity continued to weigh heavily on the market, limiting any upward price movement. These factors combined to create a bearish sentiment as the quarter drew to a close. Ending the quarter, the price for melamine in China was recorded at USD 803/MT FOB Qingdao. In Q4 2024, the APAC melamine market saw a volatile trend, with initial declines in October, a surge then slight decline in November, and further declines in December.
Europe
In Q3 2024, the European melamine market saw an increasing price trend in October, driven by persistent tight supply and rising costs. Robust demand from downstream sectors like laminates and coatings, coupled with strengthened cost support from rising urea prices due to geopolitical tensions, contributed to the upward pressure. Market supply remained constrained while demand outpaced available inventories. In November, the market trend became stable. Prices remained steady due to robust cost support from feedstock urea and improved supply conditions following the resumption of operations at a key melamine plant like LAT Nitrogen's resumption of operations at its Linz melamine plant. Balanced market fundamentals, supported by sufficient inventories and stable procurement, contributed to this stability. However, potential global price impacts from new production capacity in APAC were noted. In December, the market experienced a declining trend. Prices softened due to improved domestic supply, competitive pricing from APAC nations, and weakened demand from the struggling German construction sector. Manufacturers focused on destocking efforts, and the holiday season further muted market activity. Ending the quarter, the price for melamine in Germany was recorded at USD 1,641/MT FOB Hamburg.
For the Quarter Ending September 2024
North America
In Q3 2024, the North America melamine market experienced significant fluctuations in pricing trends. After a dip in July, prices began to rise steadily through August and September, supported by strong cost pressures from feedstock urea and increasing energy prices. Compared to the same period in 2023, melamine prices fell by 7.1%, in the USA market while they also recorded a 12.3% decline from Q2 2024. Despite these year-on-year and quarter-on-quarter drops, the market displayed signs of recovery toward the end of Q3.
Key drivers of this recovery included supply chain disruptions caused by Hurricane Beryl, which tightened supply, and a gradual rebound in downstream demand from sectors such as laminates, coatings, and adhesives. These factors helped strengthen market sentiment. On the supply side, continued tightness added upward pressure on prices.
The USA, a crucial market player, saw significant price increases, with melamine prices reaching USD 1,675/MT FOB Texas by the close of the quarter, signaling the market's recovery after earlier challenges.
APAC
Throughout the Q3 2024, the melamine market in the APAC region experienced a notable decline in prices. Several key factors contributed to this downward trend. Weak demand from downstream sectors, such as laminate, coating, played a significant role in the pricing dynamics. Seasonal factors, such as heavy rainfall, further impacted the melamine market by hampering construction activities, which affected the downstream industries. Additionally, limited cost support from feedstocks urea further weakened market confidence. The market sentiment remained negative due to sluggish global demand, new capacity additions during the quarter. Oversupply in the market, coupled with the declining urea prices, contributed to the negative pricing environment. In China, the market experienced the most significant price changes, with factors such as further restrictions on fertilizer exports impacting urea prices and subsequently melamine prices. The overall trend in China reflected a 18% decrease from the same quarter last year, with a 7.3% decline from the previous quarter in 2024. As the quarter ended, the spot price of melamine in China stood at USD 815/MT FOB Qingdao, reflecting the bearish sentiment throughout Q3.
Europe
In Q3 2024, the European melamine market experienced a shift in pricing trends, with notable fluctuations across the quarter. After a slight decline in July, prices began to rise steadily through August and September, driven by strong cost support from feedstock urea and rising energy prices. The quarter saw a 14.1% drop compared to the same period last year and a 7.6% decrease from Q2 2024. Despite these year-on-year and quarter-on-quarter declines, the melamine market showed signs of recovery toward the end of Q3. Key factors contributing to this upward trend included supply chain disruptions, tightening supply, and a gradual rebound in downstream demand, particularly from the laminates, coatings, and adhesives sectors. The flooding across central and eastern Europe, coupled with logistical challenges, further limited supply, adding pressure to prices. On the supply side, the melamine market continued to experience tightness. Germany, a key player in the market, witnessed significant price increases, with melamine prices reaching USD 1,553/MT FOB Hamburg by the end of the quarter.
South America
In Q3 2024, the South American region witnessed a notable decline in Melamine prices, primarily driven by high inventory levels and subdued demand from key downstream sectors such as laminates and coatings. The market was characterized by sluggish procurement activities, reflecting a lack of enthusiasm for fresh purchases amidst weak market sentiment. Additionally, factors like ample supply, low demand, and reduced momentum in end-use industries contributed to the bearish pricing environment. Brazil, experiencing the most significant price changes, saw a consistent downward trend throughout the quarter. However, the -11.7% change from the same quarter last year indicated a challenging market scenario, further exacerbated by the 9.9% decrease from the previous quarter in 2024. The second half of the quarter recorded a substantial drop in prices compared to the first half, underscoring the persistent downward pressure on Melamine prices. The quarter ending price of USD 1104/MT CFR Santos in Brazil marked the culmination of a consistently negative pricing trend, highlighting a challenging period for the market.
For the Quarter Ending June 2024
North America
During Q2 2024, the melamine market in North America experienced a pronounced decline, marked by consistent negative sentiment. Market dynamics were influenced by multiple factors, including subdued demand from downstream sectors, rising production costs, and ample inventory levels. The primary drivers for falling prices stemmed from reduced activity in downstream industries such as laminate, furniture, and coatings, which were adversely affected by economic uncertainties and rising interest rates. Additionally, fluctuations in feedstock urea prices, coupled with seasonal demand variations, further exacerbated the market downturn.
In the USA, the melamine market saw significant price volatility, with the most dramatic alterations recorded. The declining trend was underscored by a 9.2% drop compared from the previous quarter in 2024. This persistent downward movement culminated in the quarter ending with melamine prices at USD 1510/MT DEL Louisiana.
Overall, the pricing environment for melamine in the USA during Q2 2024 has been decidedly negative. The market's inability to recover from high inventory levels, coupled with weak demand and rising costs, has perpetuated a consistent decline in prices, reflecting an overarching bearish sentiment throughout the quarter.
APAC
In Q2 2024, Melamine prices in the APAC region witnessed significant fluctuations, driven by a myriad of factors that collectively influenced the market landscape. One of the primary reasons for this volatility was the subdued demand from downstream industries such as laminate and coatings, exacerbated by a slowdown in construction activities. Despite the Chinese market stabilizing post its earlier downturn, the overall market sentiment remained cautious due to persistent oversupply issues and reduced export orders. Additionally, fluctuating feedstock prices, particularly urea and natural gas, played a crucial role in shaping the production costs, thereby influencing the final prices of melamine. Focusing on South Korea, which experienced the most pronounced price changes, the market exhibited a clear trend of declining prices. This was largely attributed to the severe downturn in the construction industry, which not only dampened demand for construction-related products like melamine but also resulted in excess supply and inventory pressures. The seasonality factor also contributed to this trend, with lower construction activity during certain periods exacerbating the market's bearish sentiment. From the same quarter last year, melamine prices in South Korea declined by 2.1%, while a 7.3% decrease was observed from the previous quarter in 2024. The quarter-ending price for melamine in South Korea stood at USD 909/MT FOB- Busan, underscoring a negative pricing environment.
South America
In Q2 2024, the South American melamine market faced a notable decline, marked by a consistently negative sentiment. Key factors influencing this downturn included weak demand from downstream sectors, such as laminate, furniture, and coatings, driven by economic uncertainties and rising interest rates. Additionally, low import prices and high inventory levels compounded the downward pressure on prices. Fluctuations in feedstock urea prices and seasonal demand variations further exacerbated the market's struggles. In Brazil, the melamine market experienced a significant price drop, with prices falling by 2% compared to the previous quarter and 2.1% year-over-year. This persistent decline led to a quarter-end price of USD 1445/MT CFR Santos.
Overall, the Q2 2024 pricing environment for melamine in Brazil has been decidedly bearish. The market's inability to recover from elevated inventory levels, coupled with subdued demand and rising costs, has resulted in a sustained downward trend in prices, reflecting a broadly negative market sentiment. The lack of significant improvements in demand or pricing support underscores the challenges facing the market.
Europe
In Q2 2024, the melamine market in Europe experienced a notable decrease in prices, driven primarily by a confluence of factors that exerted downward pressure on the market. Key influences included subdued demand from downstream industries, a surplus in supply, and lower production costs due to decreased natural gas prices. The macroeconomic environment was also a significant contributor, with rising interest rates, higher inflation, and overall economic stagnation curbing purchasing power and reducing construction activities, which are critical for melamine consumption.
Germany saw the most pronounced price changes within the region. The market trends in Germany highlighted a bearish sentiment, reflecting the broader European market dynamics. Seasonality played a role, with the second half of the quarter showing a sharper price decline compared to the first half, underscoring the persistent weakness in demand and high inventory levels. The price of melamine in Germany for Q2 2024 ended at USD 1333/MT FOB Hamburg, marking a significant 8.2% drop, compared to the previous quarter in 2024.
These figures underscore the consistent and steep downward trajectory of melamine prices. The overall pricing environment has been decidedly negative, with market participants navigating through a period of significant price erosion, driven by an imbalance between supply and demand and exacerbated by broader economic pressures.
