Quarter Ending September 2025
North America
• In USA, the Urea Formaldehyde Concentrate Price Index rose by 1.5% quarter-over-quarter, supply tightened recently.
• The average Urea Formaldehyde Concentrate price for the quarter was approximately USD 1015.00/MT, measured nationally.
• Urea Formaldehyde Concentrate Spot Price remained tight with limited spot availability, supporting ongoing contract negotiations.
• The Urea Formaldehyde Concentrate Price Forecast anticipates volatility from seasonal construction and urea feedstock fluctuations.
• Urea Formaldehyde Concentrate Production Cost Trend rose amid higher urea and energy costs increasing expenses.
• Urea Formaldehyde Concentrate Demand Outlook remains firm driven by adhesives, engineered wood, and construction restocking.
• Inventories tightened across distributors, keeping the Urea Formaldehyde Concentrate Price Index supported despite balanced production.
• Limited export demand with hurricane season and heatwave risks heightened outage concerns for Gulf producers.
Why did the price of Urea Formaldehyde Concentrate change in September 2025 in North America?
• Domestic supply tightened from elevated urea costs, logistical constraints, and Gulf outage risk reducing volumes.
• Higher feedstock and energy prices increased production costs, supporting the Urea Formaldehyde Concentrate Price Index.
• Strengthened resin demand and construction restocking pressured availability, prompting buyers to secure volumes earlier.
APAC
• The Price Index for urea formaldehyde concentrate in Asia increased moderately during Q3 2025, supported by elevated urea costs and strong regional demand, especially from China and India’s construction and agriculture sectors.
• Prices reflected firm buying interest and constrained supply.
• The Production Cost Trend remained elevated due to high feedstock prices, particularly urea and formaldehyde.
• Energy and transportation costs also contributed to cost inflation, though producers managed output efficiently to avoid margin erosion.
• The Demand Outlook for Q4 2025 remains bullish. Continued infrastructure development, rising furniture exports, and seasonal fertilizer application are expected to sustain urea formaldehyde concentrate consumption.
• Growth in adhesives and coatings may offer additional support.
• The Price Forecast for Q4 suggests a stable-to-slightly-rising trajectory, contingent on feedstock pricing and regional demand strength.
• Market participants anticipate firm pricing unless disrupted by raw material volatility or trade policy shifts.
Why did the price of Urea Formaldehyde Concentrate change in September 2025 in Asia?
• In September 2025, urea formaldehyde concentrates prices increased due to tight inventory management, logistical cost pressures, and robust demand outlook from the engineered wood and fertilizer industries.
• Suppliers maintained disciplined output, preventing oversupply and supporting Spot Price stability.
Europe
• The Price Index for urea formaldehyde concentrate in Europe remained largely flat during Q3 2025, with a marginal 0.4% decline in September.
• This was attributed to moderate demand from the construction and fertilizer sectors and stable feedstock prices.
• The Production Cost Trend remained stable throughout Q3, supported by steady prices of urea and formaldehyde.
• Energy costs were manageable, and European producers-maintained output without major disruptions.
• The Demand Outlook for Q4 2025 is cautiously optimistic. While construction activity may remain sluggish, demand from furniture manufacturing, fertilizer blending, and adhesive production is expected to offer moderate support to urea formaldehyde concentrate consumption.
• The Price Forecast for Q4 suggests a flat-to-slightly-increasing trend, contingent on feedstock pricing and seasonal demand recovery.
• Any tightening in urea supply or energy cost spikes could influence pricing dynamics.
Why did the price of Urea Formaldehyde Concentrate change in September 2025 in Europe?
• In September 2025, urea formaldehyde concentrate prices decreased slightly due to subdued demand outlook from the engineered wood and fertilizer industries.
• While supply remained consistent, buyers adopted cautious procurement strategies amid economic uncertainty, leading to a dip in Spot Prices.
For the Quarter Ending June 2025
North America
• UFC Spot Price in key Asia Pacific markets trended upward in Q2 2025, consistent with North American and global chemical price strength—though specific quarterly percent isn’t provided locally, the regional Price Index moved upward in parallel.
• Elevated urea costs globally, combined with strong regional demand—particularly from China and India’s wood panel, plywood, and particleboard industries—supported the regional rally.
• Suppliers in APAC maintained disciplined supply amid logistical cost pressures; inventories were managed tightly, preventing oversupply.
• The Demand Outlook from the wood resin and fertilizer sectors remained robust, especially in high growth markets.
• Producers focused on high value resin grades (e.g. low formaldehyde variants) to balance price pressures and meet regulatory demand.
Why does the price of UFC change in July 2025 in North America?
• Upstream cost pressure intensified, as global urea markets saw a notable rise in U.S. feedstock indices, and formaldehyde indices rose regionally.
• These cost trends raised UFC production costs, especially in energy-intensive refining and polymer processing hubs.
• Demand held firm, particularly in the adhesive, resin, and wood-panel sectors, prompting restocking behavior amid limited spot availability.
• The combination of higher feedstock costs and resilient downstream activity spurred a continuation of UFC’s upward trajectory.
APAC
• The Urea Formaldehyde Concentrate (UFC) Spot Price in Asia-Pacific increased steadily in Q2 2025, supported by rising upstream urea and formaldehyde costs and firm demand across the region.
• Robust offtake from plywood, particleboard, and adhesive industries in China and India underpinned pricing strength, despite modest global economic uncertainty.
• Supply remained balanced as manufacturers managed inventories carefully amid rising freight costs and limited container availability, helping prevent market oversupply.
• Export activity was stable, but elevated production costs and logistical hurdles added pressure to pricing.
• Suppliers emphasized high-grade, low-formaldehyde UFC variants in response to tightening environmental and regulatory standards.
Why does the price of UFC change in July 2025 in APAC?
• Feedstock Urea input costs globally trended upward, particularly in China, contributing to regional upstream pressure
• Formaldehyde pricing remained largely stable in core northeast Asian markets, though combined with urea trends, overall feedstock costs rose modestly
• While demand from plywood, particleboard, and adhesive sectors remained steady, it wasn’t sufficiently overheated—thus demand strain tempered price gains.
• Result: Moderate continuation of the UFC upward trend, underpinned by incremental input cost pressure but balanced by restrained downstream restocking.
Europe
• UFC Spot Price in Europe saw steady gains in Q2 2025, contributing to a firmed Price Index, though growth was more moderate compared with North America and APAC.
• Local production and imports remained stable; however, input cost inflation (formaldehyde, urea, energy) and regulatory compliance pressures constrained margins and supply flexibility.
• Demand from European furniture, construction, and particleboard sectors was steady but muted by formaldehyde emission regulations and substitution concerns.
• Business sentiment improved modestly in key economies but did not fully offset cost pressures or influence pricing significantly.
• Market participants saw some resistance to higher spot prices due to regulatory scrutiny around formaldehyde usage.
Why does the price of UFC change in July 2025 in Europe?
• Formaldehyde indices rose significantly, reflecting tight supply, regulatory compliance costs, and energy-driven production expenses.
• Although precise European urea input data is limited, global urea dynamics likely translated into upward feedstock cost pressures locally.
• Downstream demand remained cautious, influenced by regulatory scrutiny around formaldehyde emission standards, reducing appetite for aggressive buying.
• The net effect: Modest upward movement in UFC pricing, based on cost escalation but moderated by restrained demand.
