In late November 2024, Melamine prices continued to experience downward pressure, largely driven by muted demand from the downstream coating, laminate, and plastics sectors. The Asian market, particularly China, remained at the center of this bearish trend. Weak consumption patterns, high inventories, and supply-demand mismatches defined the market outlook, creating a challenging environment for Melamine manufacturers and downstream industries. Oversupply exacerbated these conditions, with production from newly commissioned facilities such as Xinjiang Yankuang, Henan Jinkong Tianqing, and Shaanxi Longhua flooding the market. Additionally, Melamine units resuming operations after maintenance further contributed to the availability surplus, intensifying the bearish sentiment.

Slowing demand for Melamine from construction sector in China compounded the issue, with real estate investment declining significantly and cumulative sales from January to October falling by 32.7% year-on-year. Limited land acquisition and cautious investment sentiment undermined demand for Melamine in construction-related applications such as laminates, wood panels, decorative materials, and plastics. The sluggish recovery in construction activities reflected broader economic uncertainties, which stifled growth in downstream markets. Export demand failed to offset domestic challenges as global consumption remained weak, leaving manufacturers struggling with high inventories and pricing pressures.

Further reducing the production cost of Melamine in China, as the feedstock urea prices exhibited a weakening trend throughout the month. In the first half of November, domestic urea prices slightly adjusted upward due to decreased supply caused by equipment maintenance at some enterprises, leading to a backlog of pending orders. However, by mid-month, urea prices fell as the market faced a strong supply coupled with weak demand. Increased urea availability and cautious downstream purchasing behavior, limited to essential needs, resulted in a decline in new orders. By the end of the month, domestic urea prices underwent narrow adjustments, with stable trading volumes in the market. This drop in feedstock costs added to the competitive pressures in the Melamine market, enabling manufacturers to maintain output despite the sluggish demand.

In Europe, Melamine prices faced downward pressure as supply conditions improved, with LAT Nitrogen increasing run rates at its Linz facility, easing earlier constraints and aligning production with moderate downstream demand. Stable feedstock urea prices provided minimal cost support, while global oversupply intensified competitive pricing. Despite producers' destocking efforts, cautious buyer procurement and soft terminal demand continued to hinder price stabilization.

Summarizing the pricing scenario, the global Melamine market remains oversupplied, with price declines expected due to sluggish recovery in coatings, laminates, and plastics, particularly in the Asia-Pacific region. Persistent supply gluts and weak demand continue to weigh on the market, while manufacturers focus on destocking and production adjustments. Without a rebound in downstream sectors or increased export volumes, the near-term outlook for Melamine remains bearish.