Wood-based products demand has affected Urea Formaldehyde Resin prices amidst inflation and oversupply in Europe and the USA. In the month ending on 31st March 2023, the prices of Urea Formaldehyde Resin declined in the European and US market. In Europe, the price of the product declined by around 1.6% while in the USA it declined by around 1.3%. The price of Urea Formaldehyde Resin followed the price trend of feedstock Urea during this month as in Europe the price of feedstock Urea plunged by 14% while in the USA it fell by 17%.

In the USA, prices of several commodities including Urea Formaldehyde Resin declined in March 2023 owing to declined demand from the multiple downstream industries. Further, the US bank crisis caused a credit crunch, which meant that banks became hesitant to lend money to businesses and consumers. This led to a decrease in consumer spending, as individuals are less access to credit and were more cautious about their spending. As a result, the US Urea Formaldehyde Resin market experienced a decrease in demand for the product, as consumers were less willing or able to purchase them.

In Europe, a higher inflation rate impacted Urea Formaldehyde Resin demand by reducing the purchasing power of consumers and increasing the cost of production for businesses, which resulted in lower sales and reduced demand for the product, In February 2023, the inflation rate of Europe reached 9.9%. It is anticipated that in the upcoming month, inflation may ease in Europe as the government has been taking multiple initiatives to resolve inflation crises.

Urea Formaldehyde resin is extensively used in the manufacture of wood-based products such as particleboard, medium-density fibreboard (MDF), plywood, and oriented strand board (OSB). The inflation crises directly reduced the demand for wood-based products, as prices rose, consumers started reducing their spending on non-essential items like wood-based products to prioritize their budget. This decrease in demand for the products affected the price of Urea Formaldehyde resin in Europe.

According to ChemAnalyst, the price of Urea Formaldehyde Resin may decrease in Europe and the USA in April 2023 due to expected low demand from the downstream industries. Conclusively, the movement of Europe's Inflation crises and the repercussion of US bank crises will drive the market.