After mid-August 2024, Melamine Paper prices in the APAC region remained stagnant, with market showing no notable improvement. Demand from key downstream sectors such as laminates, surface coatings, and wood adhesives remained weak, primarily due to India's rainy season and China’s struggling real estate market. The downturn in China's housing sector, marked by a sharp decline in home sales, significantly affected the overall demand for Melamine Paper. This subdued demand pressured the feedstock market as well, leading to a downward trend amidst limited orders. Insufficient trading and weak fundamentals hindered market momentum, causing traders to adopt a cautious approach and shift negotiations towards lower price points. The previously favorable supply-side support for Melamine Paper weakened, prompting suppliers to adopt flexible negotiation strategies focused on shipping.

Recently, India's manufacturing sector faced challenges, with a decline in new orders leading to reduced manufacturing activity and lower raw material prices. Simultaneously, finished goods inventories kept on piling up due to shipments hurdles, further straining the Melamine Paper market. In this bearish environment, suppliers attempted to stimulate demand by lowering Melamine Paper prices and offering discounts, but weak procurements led Indian buyers to scale back purchases.

The Melamine Paper market continued to face downward pressure due to soft demand across key sectors, limited feedstock cost support, and broader economic challenges. The monsoon season in India exacerbated difficulties by causing infrastructure damage and disrupting daily life, which reduced transactions in the housing and construction markets. This further impacted the demand for Melamine Paper. Similarly, the ongoing downturn in China’s real estate sector weakened demand for downstream products, such as laminates and surface coatings, which are closely tied to the Melamine Paper market. Consequently, traders are pressured to offload Melamine Paper at lower prices, while downstream factories purchase only as needed, contributing to the bearish market outlook.

According to DOW's Q2 results, the Polyurethanes & Construction Chemicals segment saw a year-over-year drop in net sales due to local price declines and sluggish demand, impacting the Melamine Paper market. Additionally, rising freight and container costs made imports more expensive, contributing to the overall price dynamics.

Looking ahead, the Melamine Paper market in APAC is expected to remain stable, with no significant price changes anticipated in the near term. Weak demand from the downstream sector and sufficient supply levels will likely continue to influence market dynamics. Businesses are expected to maintain a cautious approach, focusing on immediate needs rather than speculative buying, which should keep Melamine Paper prices stable with limited fluctuations for the rest of 2024.