For the Quarter Ending September 2025
North America
• In the United States, the Urea Resin Price Index fell quarter-over-quarter in Q3 2025, driven by oversupply and weakened chemical demand.
• Urea Resin production costs rose in Q3 2025, influenced by a 2.6 percent Producer Price Index increase in August 2025.
• Demand for Urea Resin faced headwinds in Q3 2025 due to sluggish building activities and 0.1 percent industrial production growth.
• The Urea Resin demand outlook was mixed, with declining consumer confidence in September 2025 contrasting with robust retail sales.
• Oversupply of urea and ammonia in early August 2025 contributed to demand weakness and downward price pressure.
• Ammonia prices rose sharply in late August 2025, and US methanol prices surged, significantly impacting Urea Resin feedstock costs.
• Trade flows were disrupted in Q3 2025 by US tariffs and geopolitical tensions, creating supply chain pressures.
• The 3.0 percent Consumer Price Index increase in September 2025 indicated persistent inflation, affecting raw material and transportation costs.
Why did the price of Urea Resin change in September 2025 in North America?
• Oversupply of urea and ammonia in early August 2025 contributed to downward price pressure.
• Weakened overall chemical demand in Q3 2025, alongside sluggish construction activities, reduced consumption.
• Rising feedstock costs, like surging methanol prices in August 2025, exerted upward pressure on production expenses.
APAC
• In China, the Urea Resin Price Index fell quarter-over-quarter in Q3 2025, influenced by contracting manufacturing activity.
• Urea Resin production costs declined in Q3 2025, as coal prices for urea feedstock softened from July to September 2025.
• Methanol prices experienced a gradual decline throughout Q3 2025, easing costs for formaldehyde, a key Urea Resin component.
• Domestic demand remained soft in Q3 2025, with CPI at -0.3% and PPI at -2.3% year-on-year in September 2025.
• Industrial production increased 6.5% year-on-year in September 2025, yet the Manufacturing Index was contracting.
• Consumer confidence at 89.6 and retail sales growth of 3.0% in September 2025 offered mixed signals for demand.
• Unemployment rate at 5.2% in September 2025 indicated a stable labor market, indirectly supporting consumer spending.
• China's urea export volumes surged in Q3 2025, driven by global demand, influencing domestic supply dynamics.
Why did the price of Urea Resin change in September 2025 in APAC?
• Contracting Manufacturing Index in September 2025 signaled reduced industrial activity, lowering Urea Resin demand.
• Urea feedstock (coal) costs softened from July to September 2025, decreasing Urea Resin production expenses.
• Weak industrial demand, evidenced by PPI falling -2.3% year-on-year, exerted downward price pressure.
Europe
• In Germany, the Urea Resin Price Index fell quarter-over-quarter in Q3 2025, driven by weak demand and lower feedstock costs.
• Urea Resin production costs declined in Q3 2025, influenced by a 1.7% PPI y-o-y decrease in September 2025.
• The Urea Resin demand outlook weakened as the Manufacturing Index contracted in September 2025.
• Industrial Production declined by 1.0% y-o-y in September 2025, impacting Urea Resin demand in manufacturing.
• European natural gas feedstock costs weakened in July 2025, then fluctuated before stabilizing in September 2025.
• Consumer confidence was significantly negative (-23.6 index) in September 2025, dampening demand for end-use products.
• European urea prices were pulled downward throughout Q3 2025 due to muted demand and increased imports.
• Elevated European energy costs and a 2.4% CPI y-o-y in September 2025 indicated inflationary pressures.
Why did the price of Urea Resin change in September 2025 in Europe?
• Contracting Manufacturing Index and declining Industrial Production in September 2025 reduced Urea Resin demand.
• A 1.7% PPI y-o-y decline in September 2025 lowered Urea Resin production costs.
• Increased European urea imports from North Africa and Middle East in Q3 2025 pressured prices downward.
For the Quarter Ending June 2023
North America
During the second quarter, the Urea Resin in the USA declined compared with the first quarter. A marginal downturn was observed in April along with the substantial decline in May and June amid a lack of demand from the downstream wood and furniture industry. As per Statista, the prices of lumber in the US have fallen by -5.3% in April, compared to March, which is a significant decline.
Moreover, the abundant supply of Urea-Formaldehyde Resin supported the price trend of the product to showcase a downtrend. Additionally, the US banking crisis contributed to the product's decreased demand. The low purchasing activity was observed due to high inflation and increased interest rate in the country.
Furthermore, Low feedstock Urea prices have made it less profitable to produce Urea Resin, so producers have made less of it during June. The negative buying sentiments of the product in the market influenced the prices to continuously decrease and settle at 694 USD/ tonne Urea formaldehyde resin FOB New York (USA) during June.
Asia
A substantial decline has been observed during the second quarter for urea resin in the Chinese market supported by low feedstock urea prices. As per the NBS data, the Industrial growth rate declined from 5.6% (April 2023) to 3.6% (May 2023), which indicates a lack of robustness in the trading activities within China. The low feedstock urea prices lowered the production cost of the product and strengthened the supply chain which has further supported the price trend to showcase the bearish trend. Furthermore, the oversupply of the product during May along with the low demand from the downstream wood and furniture industry, dragged down the prices drastically. The manufacturing units were at their normal capacity level, and no barriers were observed in the supply chain during this period. The ample availability of the product and no shortage of material led to negative buying sentiments in the market influenced the prices to continuously decline and settle at 632 USD/ tonne Urea formaldehyde resin FOB Qingdao (China) during June.
Europe
The market situation for Urea Resin in Europe remained bearish throughout the second quarter of 2023. The key driving factor for the decline was the lower-than-anticipated product demand which has created negative buying sentiments amongst traders. Furthermore, the reduction in the costs of feedstock urea prices also aided in the depreciation of the urea resin market trend. Supply was recorded to be optimum as production units ran at full capacity and no disruptions in the supply chain or bottlenecks were identified. However, demand remained largely on the negative side due to minimum purchasing activities in the domestic reason, muted export orders from overseas, and the wider inflationary pressure due to insufficient rebound of the European economy. The increment in inflation also cast a negative outlook towards the consumers and downstream industries which further contributed to the reduced purchasing activities and compelled manufacturers to sell products at discounted prices to mitigate excess inventories, thereby diminishing profit margins. The overall market fundamental of the USA resembles Germany and the prices of Urea Resin settled at 639 USD/tonne FOB Hamburg (Germany) during June.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, the price of Urea Resin in the US market experienced a decline of around 2% in both January and February, while in March, it decreased by approximately 1%. This trend was mainly due to the decreased feedstock Urea prices, which experienced a rapid decline in the US market. In January and February, the feedstock Urea price declined by around 27%, while in March, it decreased by approximately 18% in the country. Moreover, there was low demand for the product in the market during this quarter. Nevertheless, the supply for the product in the region was high due to its ease of availability in the market. However, traders anticipate that the price for the product may increase in the upcoming quarter due to the expected increased demand from the global market.
APAC
During the first quarter of this year, the price of Urea Resin in the Asian market increased due to high demand in the region, while supply remained moderate. Import from overseas, such as the USA, continued without any disturbance, resulting in a moderate supply of the product. In January, the price of the product in China increased by around 2.5%, while in February and March, prices rose by around 2% and 2.5%, respectively. The demand for the product in China rebounded during this quarter, as the country lifted COVID restrictions and CNY uncertainty, allowing the Chinese economy to recover. In the Indian market, the price of the product increased in the first month, but in the second and third months of the quarter, prices declined as the price of feedstock fell in the Indian market, which impacted the price of the product.
Europe
During Q1 2023, the price of Urea Resin decreased in Europe due to low demand and high supply of the product. Despite the low demand from the downstream woodworking industry, many European countries had fully loaded inventories in the country. The feedstock Urea prices also declined, further supporting the downward price trend for the product during this quarter. In the German market, the price of the product declined by approximately -2.0% in January, -2.2% in February, and -1.6% in March due to the decline in feedstock Urea prices, which fell by 15% in January and 14% in February and March. The low demand from the downstream wood making industry, coupled with the high supply of the product, contributed to the price decline. Furthermore, the strike and protests in Europe during this quarter against high living costs also affected the demand for the product.
For the Quarter Ending December 2022
North America
The price of Urea Resin in the US market kept going down during Q4 because of the steep drop in the price of raw materials during the fourth quarter. The Urea Resin price continued to drop because of poor trade fundamentals and lackluster demand. In November 2022, feedstock natural gas prices decreased by around 15%, and this pattern persisted into December, according to the figures. Moreover, the market is witnessed a steep drop in consumption from the downstream preservative industry. Weak benchmark futures and low purchasing activity prevailed in the market sentiments. The Urea-Formaldehyde Resin market continued to transact at a slower pace, and low market fundamentals further supported the downtrend of the market.
APAC
The pricing trend for Urea Resin in the Asia-Pacific region remained low in Q4 due to a lack of demand from downstream fertilizer markets. There were high expectations for the demand for Urea Resin fertilizer during India's rabi season in October, but demand remained low. The demand for Urea – formaldehyde resin was sluggish, and the supply was loose, which declined the Urea-Formaldehyde prices in the Chinese market. The downstream enterprises had sufficient inventories to fulfill the market requirement. Affected by bearish market trends, such as high inventories, sluggish domestic demand, and limited demand, regional Urea Resin prices declined with weak market fundamentals. Because of the decline in demand from industrial and agricultural clients in the APAC region, Q4 has historically been one of the weakest seasons for Urea Resin pricing.
Europe
There have been differing views on the pricing trend for Urea Resin in Europe until the fourth quarter of 2022 due to the continued volatility of natural gas prices and the feedstock ammonia. The urea-Formaldehyde Resin market moved lower as oversupply, and low interest from the preservative sector suppressed any sparkles of movement. Additionally, the supply chain was in chaos as a result of conflicting opinions regarding freight prices and the limited number of available containers. Russia increased the import quotas for all nitrogen fertilizers in November, which helped to boost the domestic supply. The fourth quarter's shifting demand was consistent with how the downstream fertilizer market reacted.
