The global Melamine market faced significant pressure in the early weeks of January 2025, as subdued downstream demand and elevated inventory levels continued to weigh on market dynamics. Seasonal slowdowns, cautious procurement, and weak economic indicators shaped the market landscape across key regions.

In China, Melamine market activity remained subdued, reflecting weak cost support from feedstock urea and limited downstream demand from laminates, boards, and coatings sectors. Export volumes experienced a significant month-on-month decline in November 2024 as per the latest data released in December 2024, driven by low import from the key nation like India, Vietnam, and Brazil. Domestically, cold weather curtailed construction activities, further dampening demand for Melamine-based products. Despite rising production capacity, cautious production strategies and controlled inventory management by manufacturers helped stabilize market sentiment.

In India, domestic consumption remained weak amid ample supply and low-priced imports from China. The downstream demand sentiment was relatively cold, with insufficient procurement follow-up. Market trading was limited to immediate needs, as buyers adopted a cautious, wait-and-see attitude. Seasonal factors, such as cold weather and reduced construction activity, further suppressed market activity, although gradual recovery is anticipated in early 2025.

Downstream demand sentiment in other APAC regions also remained subdued. Rising production capacity in APAC, including at Xinjiang Yankuang and Henan Jinkong Tianqing, added supply pressure, while weak downstream demand constrained price movement. Market trading was sluggish, with purchases mainly driven by immediate needs. Buyers prioritized caution and postponed large-scale procurement, reflecting uncertainty about future market trends.

In the United States, Melamine demand remained weak, particularly in laminates and coatings sectors. Severe winter weather delayed construction projects, leading to reduced consumption of construction-related chemicals, including Melamine. The downturn in construction activity was confirmed by U.S. Census data released on January 2, 2025, showing flat construction spending in November 2024, with private construction seeing modest gains while public construction declined. Elevated inventory levels and competitive low-cost imports further constrained market activity. Despite seasonal disruptions, domestic production and supply remained stable, with manufacturers maintaining cautious production strategies.

The European Melamine market remained sluggish, impacted by weak demand and prolonged holiday slowdowns. According to the German Association of the Chemicals Industry (VCI), downstream sectors like laminates and coatings exhibited minimal procurement, while competitive Melamine imports from Asia intensified pressure. The construction sector, a significant Melamine consumer, faced delays and contractions in housing and infrastructure projects. Economic challenges and cold winter weather further restrained activity, with buyers limiting Melamine purchases to immediate needs amid uncertainty.

As per ChemAnalyst, Melamine prices are anticipated to slightly improve in APAC markets due to increased procurement activity ahead of the Lunar New Year. However, North America and Europe are expected to remain under pressure in the coming weeks, driven by market uncertainties and ample inventory levels.