Melamine prices in APAC increased in late February, driven by rising feedstock urea costs. However, prices in North America and Europe remained stable as sluggish downstream sectors offset cost pressures. Market sentiment in APAC strengthened, but cautious procurement and inventory adjustments continued to influence the pricing trends of melamine.

Melamine prices in China rose as stronger cost support from rising feedstock urea prices pushed production costs higher. Sichuan Yulong Melamine and Chongqing Jianfeng adjusted prices upwards, citing higher raw material costs and increased demand from the spring farming season. However, buyers maintained cautious procurement strategies, limiting rapid price gains. Supporting this, the Inventory levels began to decline, offering some market stability, but ongoing capacity expansions kept overall supply high, capping significant upward movement.

The domestic urea market witnessed a sharp price increase due to tightened spot supply and strong seasonal demand from the agricultural and industrial sectors. Despite stable production levels, spring plowing activities and heightened industrial procurement led to strong trading volumes. Analysts suggest that this uptrend in urea prices may continue in the near term, further influencing melamine market dynamics.

China’s melamine supply remained stable, but new production capacities coming online sustained oversupply concerns. While some manufacturers attempted price hikes, ongoing expansions are expected to intensify competition. The Lunar New Year holidays also contributed to slower exports and subdued domestic trading, delaying procurement activities. Reduced output rates in certain facilities partially offset oversupply, but the overall market remained well-stocked.

In Europe, melamine prices remained stable as demand in key end-use industries such as laminates and coatings remained weak. High natural gas costs and limited construction activity continued to pressure the market. Trade tensions with key partners added further supply chain uncertainties. Cautious purchasing and excess supply prevented any immediate price hikes. While, in the U.S., melamine prices held firm, as low residential construction activity and sluggish laminate demand offset rising natural gas costs. The nonresidential construction sector showed some resilience, supporting coatings demand, but weak consumer spending and regulatory uncertainties limited broader market expansion. Producers faced challenges in maintaining competitive pricing amid ongoing market pressures.

Looking ahead, melamine prices may decline in the coming weeks in APAC, Europe, and North America.  In APAC, Ramadan is expected to slow chemical trade in the Middle East and Asia, reducing regional trade activity and downstream purchases. Meanwhile, in Europe and the U.S., sufficient inventory levels for melamine and ongoing market pressures will limit price increases, while producers continue to struggle with maintaining competitive pricing.