Melamine Paper prices in APAC have remained stable during the early week of December 2024, following a prolonged phase of weak market fundamentals. This stability is attributed to persistently low feedstock cost support from melamine and muted downstream demand from key sectors such as laminates, adhesives, and plastics. The sluggish performance of the construction sector, which serves as a critical end-use market, continues to weigh heavily on the broader Melamine Paper market. While some factories have resumed operations, increasing supply, downstream procurement remains subdued, with cautious sentiment among buyers prevailing.

Feedstock Melamine supply has risen significantly, driven by new production capacity additions from major manufacturers such as Xinjiang Yankuang and Shaanxi Longhua, as well as the resuming of previously offline facilities. This influx of supply has led to an oversaturated market, exacerbating the pricing pressure on Melamine Paper. Feedstock melamine prices also remain under pressure due to low-cost support from the feedstock urea, contributing to moderate production costs for Melamine Paper manufacturers. However, demand for Melamine Paper remains tepid, with downstream sectors such as impregnated paper, boards, adhesives, and coatings operating at reduced production rates. Oversupply and weak buying sentiment have further limited transactions in the spot market, keeping prices stagnant.

In China, the construction sector has experienced significant headwinds, with cold weather conditions curtailing building activities in northern regions. Only a few major projects are progressing, leading to near-stagnant market activity. Regulatory constraints in the real estate sector and delays in infrastructure funding have further suppressed demand for downstream materials, including laminates and adhesives. This seasonal downturn, coupled with subdued economic conditions, continues to dampen prospects for a recovery in the Melamine Paper market.

In India, Melamine Paper prices have remained stable, reflecting weak sentiment across downstream industries. The slowdown in housing and infrastructure projects has tempered growth in the construction sector, further curbing demand for materials like laminates, plastics, and coatings. Post-election uncertainties and delays in infrastructure projects have compounded challenges, making it unlikely for the market to witness significant improvement in the near term.

South Korea's Melamine Paper market, meanwhile, has faced additional disruptions stemming from political instability, which has weakened the Korean won and delayed government infrastructure projects. Strong winds at Daesan port have also strained supply chains, contributing to broader economic uncertainties. These factors, combined with weak demand across laminates and adhesives sectors, have kept the Melamine Paper prices stable yet under pressure.

As per ChemAnalyst, Melamine Paper prices are expected to face downward pressure in the coming weeks. The urgency among manufacturers to clear inventories before year-end, coupled with persistent weak demand, will likely weigh on prices. Broader challenges in the construction sector, including reduced funding for infrastructure and housing projects, are expected to keep downstream demand muted.