For the Quarter Ending September 2024
North America
In Q3 2024, the North America melamine market experienced significant fluctuations in pricing trends. After a dip in July, prices began to rise steadily through August and September, supported by strong cost pressures from feedstock urea and increasing energy prices. Compared to the same period in 2023, melamine prices fell by 7.1%, in the USA market while they also recorded a 12.3% decline from Q2 2024. Despite these year-on-year and quarter-on-quarter drops, the market displayed signs of recovery toward the end of Q3.
Key drivers of this recovery included supply chain disruptions caused by Hurricane Beryl, which tightened supply, and a gradual rebound in downstream demand from sectors such as laminates, coatings, and adhesives. These factors helped strengthen market sentiment. On the supply side, continued tightness added upward pressure on prices.
The USA, a crucial market player, saw significant price increases, with melamine prices reaching USD 1,675/MT FOB Texas by the close of the quarter, signaling the market's recovery after earlier challenges.
APAC
Throughout the Q3 2024, the melamine market in the APAC region experienced a notable decline in prices. Several key factors contributed to this downward trend. Weak demand from downstream sectors, such as laminate, coating, played a significant role in the pricing dynamics. Seasonal factors, such as heavy rainfall, further impacted the melamine market by hampering construction activities, which affected the downstream industries. Additionally, limited cost support from feedstocks urea further weakened market confidence. The market sentiment remained negative due to sluggish global demand, new capacity additions during the quarter. Oversupply in the market, coupled with the declining urea prices, contributed to the negative pricing environment. In China, the market experienced the most significant price changes, with factors such as further restrictions on fertilizer exports impacting urea prices and subsequently melamine prices. The overall trend in China reflected a 18% decrease from the same quarter last year, with a 7.3% decline from the previous quarter in 2024. As the quarter ended, the spot price of melamine in China stood at USD 815/MT FOB Qingdao, reflecting the bearish sentiment throughout Q3.
Europe
In Q3 2024, the European melamine market experienced a shift in pricing trends, with notable fluctuations across the quarter. After a slight decline in July, prices began to rise steadily through August and September, driven by strong cost support from feedstock urea and rising energy prices. The quarter saw a 14.1% drop compared to the same period last year and a 7.6% decrease from Q2 2024. Despite these year-on-year and quarter-on-quarter declines, the melamine market showed signs of recovery toward the end of Q3. Key factors contributing to this upward trend included supply chain disruptions, tightening supply, and a gradual rebound in downstream demand, particularly from the laminates, coatings, and adhesives sectors. The flooding across central and eastern Europe, coupled with logistical challenges, further limited supply, adding pressure to prices. On the supply side, the melamine market continued to experience tightness. Germany, a key player in the market, witnessed significant price increases, with melamine prices reaching USD 1,553/MT FOB Hamburg by the end of the quarter.
South America
In Q3 2024, the South American region witnessed a notable decline in Melamine prices, primarily driven by high inventory levels and subdued demand from key downstream sectors such as laminates and coatings. The market was characterized by sluggish procurement activities, reflecting a lack of enthusiasm for fresh purchases amidst weak market sentiment. Additionally, factors like ample supply, low demand, and reduced momentum in end-use industries contributed to the bearish pricing environment. Brazil, experiencing the most significant price changes, saw a consistent downward trend throughout the quarter. However, the -11.7% change from the same quarter last year indicated a challenging market scenario, further exacerbated by the 9.9% decrease from the previous quarter in 2024. The second half of the quarter recorded a substantial drop in prices compared to the first half, underscoring the persistent downward pressure on Melamine prices. The quarter ending price of USD 1104/MT CFR Santos in Brazil marked the culmination of a consistently negative pricing trend, highlighting a challenging period for the market.
For the Quarter Ending June 2024
North America
During Q2 2024, the melamine market in North America experienced a pronounced decline, marked by consistent negative sentiment. Market dynamics were influenced by multiple factors, including subdued demand from downstream sectors, rising production costs, and ample inventory levels. The primary drivers for falling prices stemmed from reduced activity in downstream industries such as laminate, furniture, and coatings, which were adversely affected by economic uncertainties and rising interest rates. Additionally, fluctuations in feedstock urea prices, coupled with seasonal demand variations, further exacerbated the market downturn.
In the USA, the melamine market saw significant price volatility, with the most dramatic alterations recorded. The declining trend was underscored by a 9.2% drop compared from the previous quarter in 2024. This persistent downward movement culminated in the quarter ending with melamine prices at USD 1510/MT DEL Louisiana.
Overall, the pricing environment for melamine in the USA during Q2 2024 has been decidedly negative. The market's inability to recover from high inventory levels, coupled with weak demand and rising costs, has perpetuated a consistent decline in prices, reflecting an overarching bearish sentiment throughout the quarter.
APAC
In Q2 2024, Melamine prices in the APAC region witnessed significant fluctuations, driven by a myriad of factors that collectively influenced the market landscape. One of the primary reasons for this volatility was the subdued demand from downstream industries such as laminate and coatings, exacerbated by a slowdown in construction activities. Despite the Chinese market stabilizing post its earlier downturn, the overall market sentiment remained cautious due to persistent oversupply issues and reduced export orders. Additionally, fluctuating feedstock prices, particularly urea and natural gas, played a crucial role in shaping the production costs, thereby influencing the final prices of melamine. Focusing on South Korea, which experienced the most pronounced price changes, the market exhibited a clear trend of declining prices. This was largely attributed to the severe downturn in the construction industry, which not only dampened demand for construction-related products like melamine but also resulted in excess supply and inventory pressures. The seasonality factor also contributed to this trend, with lower construction activity during certain periods exacerbating the market's bearish sentiment. From the same quarter last year, melamine prices in South Korea declined by 2.1%, while a 7.3% decrease was observed from the previous quarter in 2024. The quarter-ending price for melamine in South Korea stood at USD 909/MT FOB- Busan, underscoring a negative pricing environment.
South America
In Q2 2024, the South American melamine market faced a notable decline, marked by a consistently negative sentiment. Key factors influencing this downturn included weak demand from downstream sectors, such as laminate, furniture, and coatings, driven by economic uncertainties and rising interest rates. Additionally, low import prices and high inventory levels compounded the downward pressure on prices. Fluctuations in feedstock urea prices and seasonal demand variations further exacerbated the market's struggles. In Brazil, the melamine market experienced a significant price drop, with prices falling by 2% compared to the previous quarter and 2.1% year-over-year. This persistent decline led to a quarter-end price of USD 1445/MT CFR Santos.
Overall, the Q2 2024 pricing environment for melamine in Brazil has been decidedly bearish. The market's inability to recover from elevated inventory levels, coupled with subdued demand and rising costs, has resulted in a sustained downward trend in prices, reflecting a broadly negative market sentiment. The lack of significant improvements in demand or pricing support underscores the challenges facing the market.
Europe
In Q2 2024, the melamine market in Europe experienced a notable decrease in prices, driven primarily by a confluence of factors that exerted downward pressure on the market. Key influences included subdued demand from downstream industries, a surplus in supply, and lower production costs due to decreased natural gas prices. The macroeconomic environment was also a significant contributor, with rising interest rates, higher inflation, and overall economic stagnation curbing purchasing power and reducing construction activities, which are critical for melamine consumption.
Germany saw the most pronounced price changes within the region. The market trends in Germany highlighted a bearish sentiment, reflecting the broader European market dynamics. Seasonality played a role, with the second half of the quarter showing a sharper price decline compared to the first half, underscoring the persistent weakness in demand and high inventory levels. The price of melamine in Germany for Q2 2024 ended at USD 1333/MT FOB Hamburg, marking a significant 8.2% drop, compared to the previous quarter in 2024.
These figures underscore the consistent and steep downward trajectory of melamine prices. The overall pricing environment has been decidedly negative, with market participants navigating through a period of significant price erosion, driven by an imbalance between supply and demand and exacerbated by broader economic pressures.
For the Quarter Ending March 2024
North America
In Q1 2024, the North America, Melamine market experienced an overall increase in prices. Several factors influenced this upward trend, including strong demand from downstream industries, particularly in the construction sector. The surge in construction activity, driven by robust job growth and increased spending, led to heightened demand for melamine in applications such as laminate and wood adhesives. The stability of feedstock prices, such as urea, also contributed to the positive pricing environment.
Within the North American region, the USA witnessed the most significant price changes. The market saw a 39% increase in prices compared to the previous quarter in 2024. Additionally, there was a 5% price difference between the first and second half of the quarter. These price fluctuations were largely driven by the strong demand from the construction industry and the stable supply of melamine. The latest quarter-ending price for melamine in the USA was recorded at USD 1968/MT DEL Louisiana. This price reflects the overall increasing sentiment in the market, with prices consistently on the rise throughout the quarter.
Overall, the pricing environment for melamine in the North American region during Q1 2024 has been positive, with strong demand and stable supply contributing to the upward trend in prices.
APAC
In Q1 2024, the Melamine market in the APAC region experienced mixed pricing trends. Overall, the market was stable, with prices remaining relatively unchanged over the quarter. However, South Korea saw significant price changes compared to other countries in the region. Several factors influenced market prices during this period.
In China, the largest exporter of melamine, stable feedstock urea prices and consistent demand from downstream industries supported price stability. However, subdued demand from the construction sector and oversupply in the domestic market limited price increases. In India, melamine prices remained steady, supported by robust demand from the downstream laminate and automobile sectors. The government's focus on infrastructure and affordable housing projects contributed to a positive market sentiment. However, the market faced downward pressure due to increased competition from Chinese exports. South Korea experienced a bearish market sentiment, with melamine prices declining due to reduced demand from the construction industry. The downturn in the housing market and decreased contract values in the sector contributed to lower procurement activities and a slump in melamine prices.
Overall, the pricing environment for melamine in the APAC region during Q1 2024 was stable, with South Korea experiencing a negative trend. The correlation between melamine prices and factors such as feedstock prices, demand from downstream industries, and the overall economic outlook played a significant role in determining market dynamics. The quarter-ending price for melamine in South Korea was USD 933/MT FOB-Busan.
Europe
In Q1 2024, the Europe Melamine market experienced an overall increase in prices. Prices have been influenced by various factors, including disruptions in the supply chain, reduced demand from domestic while the exports improve that keeps the price healthy, and fluctuations in feedstock prices. These factors have contributed to a bullish market sentiment, with prices experiencing an upward trend.
In Germany, the largest market for melamine, prices have seen significant changes. The ban on urea exports from China until April 2024 has led to disruptions in the supply chain, resulting in reduced availability and increased demand. This imbalance between supply and demand has intensified, driving melamine prices higher. Additionally, the reliance on Asian and US imports for raw materials, coupled with delays in shipping routes, has further exacerbated supply chain uncertainties. The demand for melamine in Germany has remained moderate, with some fluctuations due to disruptions in the urea feedstock supply chain. The surge in wood prices and increased demand for softwood lumber exports to India have helped support melamine prices in the domestic market. Further the shutdown of several melamine plants particularly in the exporting Asian region due to Lunar New Year holidays, disrupted the supply chain and caused the scarcity globally. To fill the gap Germany firms were Operating at higher run rates. The existing supply of melamine proved insufficient to meet the growing demand, resulting in a decrease in inventory levels.
In conclusion, the pricing environment for melamine in the Europe region, particularly in Germany, has been positive in the first quarter of 2024. Supply chain disruptions, increased demand, and higher feedstock prices have all contributed to higher prices. The latest quarter-ending price for melamine FOB-Hamburg in Germany is USD 1724/MT.
For the Quarter Ending December 2023
North America
In Q4FY23, Melamine prices in the North American market exhibited mixed sentiment, rising in October, declining in November and December. In October, the US market saw minor price fluctuations with a focus on sectors like coating, lamination, and other end-use industries. The construction industry showed moderate activity, and although there was an uptick in investment for certain structures, reduced spending in other areas offset growth.
Urea price variations impacted the US market. November witnessed an increase in US Melamine prices driven by expanding demand in the construction and lamination sectors. In December, Melamine prices in the US surged due to supply constraints and heightened demand from downstream industries, particularly in anticipation of Christmas and New Year festivities, stimulating robust demand.
The positive trend in the December PMI suggested sustained demand from various industrial segments, contributing to the upward price movement. The surge was linked to a supply-demand imbalance, with Melamine inventory levels dropping, exerting upward pressure on prices, while the feedstock Urea price remained moderate. The increased spending on home renovation projects and strong demand from the laminate and automobile sectors contributed to the overall rise in Melamine prices, reflecting market tightness. As of December, Melamine prices in USA were assessed at USD 1856/MT FOB-Texas.
APAC
In Q4FY23, Melamine prices in the South Korean market exhibited mixed sentiment. October and December saw a decline due to factors like reduced feedstock urea and lower natural gas prices, impacting orders from the manufacturing sector. Concerns arose from a significant drop in contracts in the civilian and public sectors, reflecting a challenging scenario in the South Korean construction industry, leading to reduced demand in the downstream laminate sector. Persistent challenges in the housing market marked a four-quarter reduction in contract values. Oversupply and ongoing destocking processes contributed to a downward price trend, intensified by decreased crude oil and feedstock urea prices. Manufacturers strategically engaged in destocking, reducing inventories. In November, Melamine prices rose due to increased feedstock (Urea) costs and disruptions in supply from China. Surging demand in the housing and automotive sectors, along with a sudden halt in feedstock urea shipments, created a supply constraint, driving prices higher. This surge was characterized by increased new orders, underlining the growing demand for Melamine in various industries. The imbalance between supply and demand, influenced by disruptions in feedstock shipments, contributed to supply chain issues and increased prices. The rise in Melamine prices was fueled by robust demand from the downstream automobile and laminate industry, creating a competitive market. As of December, Melamine prices in South Korea were assessed at USD 1034/MT FOB-Busan.
Europe
In Q4FY23, Melamine prices in the European market showed mixed sentiment. In October, German Melamine prices increased due to operational costs and a moderate demand outlook, influenced by ongoing challenges in Germany's real estate sector. The Association of German Pfandbrief Banks reported a 1.7% decline in property prices, impacting construction firms. In November, Melamine prices dropped amid weak demand, with the market reacting negatively to October's sales record, destocking inventories. The German market observed declining demand, reflected in reduced stock sizes and new orders, with traders showing pessimistic enthusiasm. December saw a decline in Melamine prices in Germany due to decreased feedstock urea and lower natural gas prices. The wood furniture market adversity and challenges in the German chemicals industry contributed to reduced orders, impacting melamine consumption. Manufacturing in Germany continued to contract in December, with a PMI indicating declines in output and employment further, Manufacturers strategically destocked, lowering inventories, exerting downward pressure on prices. Oversupply decreased crude oil and feedstock urea, and weakened procurement contributed to reduced production costs, prompting manufacturers to adjust prices. Diminished demand from the construction industry led to a market-wide reduction in melamine, mirroring weakened global demand, ultimately contributing to a decline in prices in Germany. As of December, Melamine prices in South Korea were assessed at USD 1539/MT FOB Hamburg.
South America
The Melamine market in South America during the fourth quarter of 2023 was influenced by several key factors. Firstly, there was an increase in import volumes, particularly from major exporters like China and the USA, which drove up prices in the region. Additionally, the Brazilian economy showed signs of improvement, with better-than-expected GDP growth in the third quarter leading to an upward revision in the forecast for 2023. However, the market faced challenges such as reduced demand, declining exports, and higher production costs due to increased interest rates. In Brazil, which experienced the most significant price changes in the region, the market was characterized by moderate supply and demand levels. The construction, coating, and furnishing sectors showed excess supply, leading to a slowdown in demand. The increased import prices, driven by rising prices in exporting countries, further pushed up the prices of Melamine in Brazil. The trend for Melamine prices in Brazil during the fourth quarter of 2023 was bearish, with a price decrease of -35% compared to the previous quarter. The prices remained stable throughout the quarter, with no significant fluctuations observed. The price at the end of the quarter was USD 1143/MT CFR Santos in Brazil.
For the Quarter Ending September 2023
North America
Overall Melamine price dynamics in North America remained on a positive trend and accounted for inclined demand from the furnishing and coating sector in Q3. The American Society of Civil Engineers (ASCE) reported the inclined participants in infrastructure projects in the United States due to the convergence of two significant factors. Firstly, there exists a substantial backlog of demand for the refurbishment and enhancement of the nation's roads, ports, dams, and other civil infrastructure. This demand was accumulating over time. Secondly, external factors are aligning to generate additional opportunities in this sector. Furthermore, the Federal Housing Finance Agency (FHFA) House Price Index (HPI) indicates a continued upward trajectory. House prices in the United States increased by 0.3% compared to the previous month and by 3.1% compared to the same month in the previous year. Adjusting for inflation, the real index increased by 0.3% monthly and by 2.3% annually. The construction of new homes has reached its lowest level in more than three years, largely attributed to the resurgence of mortgage rates, which has diminished the demand for housing. Nevertheless, a rise in building permits suggests that the ongoing construction is still motivated by the limited supply of homes in the market. The decline in housing starts, as reported by the Commerce Department, marks the most significant drop in a year and is noticeable across all segments of the housing market.
Asia-Pacific
Melamine prices in the second quarter of 2023 followed the inclining momentum on account of a slow demand outlook and increased feedstock (urea). With an increase in urea (feedstock) prices, the overall price trends of melamine in China remained stable compared to the previous week. Moreover, market participants showed a willingness to accept these higher prices, considering that certain businesses in other regions of China had conducted equipment maintenance. However, there was no change in the demand from downstream sectors such as furnishings and construction. Consequently, inquiries and purchases were made on an as-needed basis. Negotiations in the melamine market remained consistent, with many business owners finalizing preliminary orders. The industry's capacity utilization rate remained below 60%, leading to a constrained supply situation. Supported by cost-related factors and supply constraints, melamine prices increased and remained elevated. Downstream industries adopted a cautious approach, primarily adopting a wait-and-see strategy and making purchases only when necessary. However, in the latter part of September, there was a noticeable decrease in downstream demand, leading to sluggish new orders. In response, some enterprises resumed production, contributing to an increase in market supply.
Europe
Melamine prices in the European market inclined throughout the second quarter on account of moderate demand and inclined production cost. In the seventh month of 2023, melamine prices in the German market experienced an upward trend due to rising feedstock (urea) prices. Manufacturers had to contend with increased production costs as upstream prices remained elevated, aggravated by uncertain economic conditions in the country. The conjunction of economic and geopolitical instability, coupled with stricter financial conditions, presented challenges to overall demand. The industrial sector in the country continued to face difficulties as Germany grappled with economic challenges. The German Economy Ministry had issued a warning, citing the negative impact of high energy prices and interest rates on the country's economy, despite an uptick in demand. The most recent official data confirmed that Germany's economy had stagnated, compounding the country's challenges amid an industrial slowdown and ongoing inflation. Despite these developments, policymakers confronted a complex economic landscape. Elevated oil prices had a cascading impact, affecting gasoline prices, transportation costs, and the production expenses of consumer goods.
South America
Melamine prices in the South American market increased throughout the third quarter of 2023 on account of inclined demand and elevated import prices. This improvement had been propelled by a modest increase in new orders and a renewed uptick in production. Concurrently, there was a slight increase in employment though it was a marginal rise. In terms of prices, input costs had decreased for the fourth consecutive month in August, albeit at a slower rate compared to July. This was primarily due to an ongoing surplus of supply relative to demand. Additionally, factory gate charges had also decreased during this period. The Brazilian government had anticipated a series of interest rate cuts, with at least 50 basis points, in the central bank's benchmark rate during the remaining three meetings in the current year. The goal had been to conclude 2023 with an interest rate below 12%, as stated by Planning Minister Simone Tebet. At that time, the Selic rate had been at 13.25%, following the central bank's decision in the previous month to begin reducing rates by half a percentage point. The increased interest rate had consequently raised the production cost, proportionally impacting the overall price dynamics of Melamine in Brazil.
For the Quarter Ending June 2023
North America
Overall, Melamine price dynamics in North America remained on a positive trend and account of inclined demand from the furnishing and coating sector. Moreover, the production cost remained at a moderate pace as the feedstock (urea) prices remained on the softer side in the domestic market. Product oversupply and higher vacancies in the employment sector amidst the moderate demand outlook governed the overall price dynamics of Melamine in the regional market. Development exercises in the US private area got going on a more vulnerable note in 2023, with the complete worth of development set up (estimated in occasionally changed ostensible terms) falling by 4.1% year-on-year (YoY) in the initial two months of this current year (the most recent information that anyone could hope to find at the opportunity of composing). The US real estate market has borne the brunt of the loan cost climbs amid endeavors by the Federal Reserve (Fed) to tame expansion. Toward the end of the second Quarter, Melamine prices settled at USD 1603 per MT, FOB Louisiana.
Asia-Pacific
Melamine prices in the second Quarter of 2023 followed the southward momentum on account of a slow demand outlook and weak feedstock (urea). In the early quarter, the cost of unrefined substance urea continued to fall, cost help debilitated, makers efficiently executed early requests, downstream interest didn't improve essentially, and new order placement was lacking, bringing about a decrease in the melamine market. The market supply was adequate, the request was normal, and the central point of melamine exchanges had declined. Towards the quarter end, urea (feedstock) debilitated, with a production limit. Downstream (furnishing, coating) demand was weak, with needing renewal being the fundamental note. Undertaking stock tension was high, and the market organic market inconsistency was conspicuous, bringing about a decrease in the melamine market. The interest simply in the required followed up fittingly, and the general exhibition of the melamine market was normal. Toward the end of the second quarter, Melamine prices settled at USD 933 per MT, FOB Qingdao.
Europe
Melamine prices in the European market inclined throughout the second quarter on account of moderate demand and inclined production cost. Feedstock (Urea) prices remained on a higher edge as the demand for urea was high in the spring season. The extra lift to expansion has constrained the European National Bank (ECB) into forceful financial fixing while at the same time harming shoppers' genuine buying power and firms' productivity. A downturn in Germany is supposed to end in the spring quarter. Eurozone government acquiring costs rose on the news as financial backers bet on further critical ECB rate increments. With inclined interest rates and higher commodity prices, the overall construction and coating sectors were impacted. Facilitating supply bottlenecks, the high excess of orders, and the fall in energy costs support the proceed with recuperation in the industry. The demand offtakes from domestic and international markets remained inclined, and the overall market dynamics of Melamine were impacted. Toward the end of the second quarter, Melamine prices settled at USD 1609 per MT, FOB Hamburg.
South America
Melamine prices in the South American market declined throughout the second Quarter of 2023 on account of slow demand and declining import prices. New orders slowed in the featuring slow domestic and new interest as counselors highlighted problematic monetary circumstances. Hence, production continued to contract, pulling some places close to a sharp reduction in the improvement of center items. Meanwhile, plants continued to shed position in the period, alluding to as far as possible in the manufacturing flow. Another decrease in port tariffs was declared by Brazil's Service of Ports terminals. The terminal is overseen by CODEBA (Companhia das Docas do Estado da Bahia), which expresses that the flow foundation expense was evaluated as per the vessel's gross size, no matter the amount of freight that is moved. This can construct the expenses of specific clients. New orders succumbed, highlighting low domestic and unfamiliar interest as market participants featured troublesome economic situations. Toward the end of the second quarter, Melamine prices settled at USD 1046 per MT, CFR Santos.
For the Quarter Ending March 2023
North America
In Q1 2023, the Melamine market in North America witnessed a slump in prices with limited trading activities and adequate product inventories among the ports. In March 2023, the Melamine prices declined to a record level with the price trend of USD 1662/ton FOB Louisiana. The slide in the price trend resulted due to feeble demand for the new stock and thin demand, impacting the Melamine price in the North and South American outlets. Melamine demand in downstream markets, such as the laminate industry, slumped, and weak product demand hindered price increases. In terms of the feedstock market, the Urea market also remains under pressure under feeble demand and rising inventories declining the production cost of Melamine.
Asia Pacific region
This quarter, the Melamine market suffered with limited demand and surplus inventories among the significant manufacturing units. During Jan 2023, the price of Melamine in China slipped to USD 1098/ton FOB Qingdao. The demand for fresh stock remains insufficient, and the downstream procurement was also weak. The negotiations for bulk purchases from the suppliers provide discounts to the buyers for the bulk purchases. The demand support was feeble, and adequate product availability affected the market trading fundamentals. Traders were unsure about buying larger volumes in the expectation that the price to decline further. The demand for Melamine from the downstream laminate and electrical component remains lulled with weak trading fundamentals.
Europe
In Q1 2023, the Melamine price in Europe remains affected by lower purchasing activities and weak spot price discussions. The Melamine market trended lower this quarter as growing spot availability added pressure on spot prices, and suppliers offered discounts to the buyers in order to reduce their current stocks. Exports of Melamine from Germany to other European regions plunged with limited requirements for fresh stocks. During March 2023, the price of Melamine in Germany slipped to USD 1582/ton FOB Hamburg. The demand for Melamine from the downstream laminate industry remains low amid feeble purchasing from buyers and limited trade volumes. In the European market, significant market participants declined their quotation prices for the regional market in the expectation of utilization of existing inventories.
For the Quarter Ending December 2022
North America
In Q4 2022, the price of Melamine in the US declined for successive months in the wake of suppressed feedstock Urea market and weak market fundamentals. In Nov, the price of Melamine in the US declined to USD 1849/ton FOB Louisiana. With declining exports of Melamine from the US to the South American region, the cost support remains limited with slow offtakes in the regional market. The sentiment for Melamine lost its momentum this quarter, yielding to waning demand amid the adequate supply and a blurry economy. The requirement of Melamine from the downstream coating industry remains limited as stockpiling of inventories makes it difficult for the ventures to increase their production rate.
Asia Pacific region
The price of Melamine in the Asia Pacific region surged toward the start of Q4 2022 because of rising raw material urea costs and an increase in export orders of some manufacturers from China to the Asian region. However, the price declined in the remaining two months due to feeble demand from the downstream industries. In Nov, the price of Melamine in China slipped to USD 1156/ton FOB Qingdao. Melamine markets stay bearish, with domestic prices below new thresholds. Narrowing profit and unprecedented inflation affected the profit margins of the major producing units. Trading activities declined this quarter, and suppliers were purchasing the product on a need-to basis.
Europe
In Q4 2022, the price of Melamine in Germany declined in the succeeding months due to a weak trading market and a declining feedstock Urea market. Major Melamine producer companies had declined their product prices in the face of weak demand and lower supplier bidding. The downstream laminate industry had also declined this quarter, and adequate product availability. In Germany, the price of Melamine in Nov declined to USD 1754/ton FOB Hamburg. Exports of Melamine from Germany and the Netherlands to other European regions slumped with adequate product supply and high inventories among the enterprises.
For the Quarter Ending September 2022
North America
the third quarter of 2022, the Melamine market slumped compared with the previous quarter in the wake of weak purchasing and deterred spot prices. After the drop in demand, significant producers revised the domestic and international market prices. Lower demand and falling commodity prices pressurized the producers to clear their existing stocks by giving discounts on the product. In the US, the price of Melamine during September slipped to USD 1888/ton FOB Louisiana. In Q3, Exports from the US to South America and Europe reduced due to oversupplies of products and weak market sentiments. Relaxation in freight cost further cushions the prices prompted by sufficient vessel availability and port congestions.
Asia Pacific region
In Q3, Melamine prices ended on a weaker note compared with the previous quarter on the back of lower demand from the end-user laminate industry. In China, the price of Melamine during July declined to USD 1202/ton FOB Qingdao. From the demand perspective, laminates and Melamine resin industries were also affected by stockpiling and a weak trading environment. Deterred Melamine purchasing in the Asian market forced significant producers to revise the product's prices for overseas suppliers. The bidding of Melamine for the new stock decreased due to oversupplies of products and weak market sentiments. However, towards the end of the quarter, prices started to gain a stance due to increasing demand and rising feedstock urea prices.
Europe
In Q3 2022, the prices of Melamine were observed to be on the lower end, with declining demand and a weak downstream market. Some Melamine producers offered discounts on the cargo to clear their existing stocks. The slump in the Melamine market due to adequate raw materials faced significant pushback from the buyers. Downstream laminate demand also declined this quarter with weak consumer demand and production cuts among the enterprises. In Germany, the price of Melamine during Sept slipped to USD 1748/ton FOB Hamburg. Exports of Melamine from Germany to other European regions declined due to oversupplies along with lower freight charges.
For the Quarter Ending June 2022
North America
In Q2 2022, the prices of Melamine slipped in April amid deterred demand for the product and surging production units. In Q2 2022, the manufacturing units of Melamine subdued the operating cost, which slowed the prices for regional and overseas suppliers. However, weak purchasing and muted fundamentals impacted falling downstream plywood and adhesive industries. Export from the United States to South America and Europe remains tepid with moderately operating trading activities. Towards the second half of the quarter, the prices ramped up with healthy demand in the domestic market and fluctuations in feedstock Methanol prices.
Asia Pacific
In the second quarter of 2022, Melamine prices experienced weak market sentiments. In the first half, the prices were already on the lower side due to the bearish production cost of Melamine following the price trajectory of the last quarter. Local producers had revised the prices of Melamine to the lower end as the high inventories among the traders and less interest of consumers resulted in such a trajectory. The downstream thermosetting plastic, plywood, and adhesive market also fell this quarter due to weak sales and revenue from the major enterprises. Several Melamine production units resumed in April 2022 after their maintenance slowed the prices.
Europe
In Q2 2022, the prices of Melamine remained on the upper end with a strong purchasing appetite and revision in the price trend for overseas suppliers. Exports from Netherlands and Germany to other European Nations surged throughout the quarter as high demand from downstream laminate industries further accelerated the prices. In terms of the feedstock Methanol market, surging prices due to the rising conflict between Russia and Ukraine made it difficult for the producers to maintain their production rates per the end user's requirement. Bullish energy and utility costs in Europe constrained the makers to expand the prices of Petrochemicals. Contract costs of Melamine likewise flooded because of raised demand and limitations on supply in the region. Driven by the increasing expense, Melamine producers planned to increase the cost of their citations.
For the Quarter Ending March 2022
North America
In Q1 2022, Melamine market was impacted by logistics issues, expanded production cost and rising contract costs. US melamine providers grappled with unexpected shift in urea costs and lower production rates because of Natural gas cuts in USA. Flooding Natural gas and ammonia costs unequivocally affected downstream Melamine cost. In value terms, Melamine creation fell in this quarter with supply constraints. On 15th March, Yara Internationals announced a cut at its production of downstream Urea and Ammonia which brought about cost climb. In this quarter, the cost of Melamine surged by 8% as compared to previous quarter. The demand of Melamine in wood and laminates flooded in the quarter with pressed benefit and low inventories among the enterprises.
Asia Pacific
In China, feedstock urea prices have gained more than 2% in early February owing to strong demand fundamentals. Consistent rise in Urea prices have prompted Melamine manufacturers to keep the prices on an upward trend amid strong demand from both domestic as well as international market. Constrained supply in some key regions have provided ample opportunities for market participants to move higher in price negotiations. The price of Melamine in China towards the end of the quarter observed to be USD 1765/ton FOB Qingdao. Inventories of Melamine increased and the poor transaction of new orders by enterprises has led to the stockpiling. Prices slipped towards the last month in India due to weak market sentiments and sufficient product availability.
Europe
In European market, the cost of Melamine rose unprecedently with rising tension among Russia and Ukraine. Spot offtakes remained robust, and significant plant turnaround kept the costs on the upper end. Feedstock Urea and Nitrogen costs were likewise expanded with solid market sentiments and lacking product accessibility. Nonetheless, logistics constraints and surge in transportation cost made players to export the product to United Kingdom and Spain. In Germany, the cost of Melamine in this quarter rose by nearly USD 300-350/MT from the previous quarter. Inventories were on the lower end with pressed benefit influencing the sales and revenue of the downstream subordinate market.
For the Quarter Ending December 2021
North America
In Q4, the prices of Melamine surged as compared with Q2 and Q3 with the marginal level due to shortage of raw material Urea. The demand of Melamine had also increased with its consumption in downstream construction industry. Local producers had increased the prices of Melamine as the insufficient supply pressurized the end user industries to fulfil the requirement of the consumers. In December, feedstock Urea market was comparably quiet, and the only activities came from US Gulf traders for New Orleans, Louisiana due to New Year holiday. The gap between relatively low prices in the US and higher price in rest of the globe remained wide enough in December that were still economically viable.
Asia Pacific
In Q4, the prices of Melamine surged in the first half of the quarter and maxed out in November in India where the prices (for 99.8% purity) hovered around $3300/ton Ex-Ahmedabad-$3530/ton Ex-Ahmedabad. Towards the end of the year, due to New Year eve the prices of Melamine dipped to $2275/ton Ex-Ahmedabad. Natural gas value volatility and export checks in a several key inventory market, however, continue to support urea pricing. Accordingly, steady mellowing situation likely for Asia Pacific region for Melamine for this quarter. In China, the prices were surged in the first half of Q4, where the prices were driven by surging energy cost, supply curtailment and trade policies. Downstream Paint Plastic industries were also operated moderately during this period
Europe
With the rise in cost of Natural Gas in the coming winters the feedstock prices increase in Q4, compared with Q2 and Q3. Melamine prices have firmed in this quarter following the spectacular increase in natural gas prices and continued tight supply in most regions. The outlook remains bullish, with Urea likely to faced pressure with increase in consumption in its downstream. Prices have been driven by flooding energy costs, supply abridgements, and trade strategies. In December, the melamine market operating rate was over 80%, however the demand side was feeble, and there was no conspicuous improvement. The market cost of melamine has fallen strongly, corporate inventories are feeling the squeeze, and the focal point of market dealings has debilitated.
For the Quarter Ending September 2021
North America
The Melamine market witnessed an upward trajectory in the North American region during the third quarter of 2021. After Hurricane Ida made landfall in September, 79% of offshore oil production and about 78% of natural gas production in the US Gulf coast went offline, thereby affecting upstream availability. In terms of demand, improved offtakes were observed as building and construction sector picked up in this quarter. Taking support from soaring feedstock prices and increased freight costs, prices of Melamine increased in North America during Q3 2021. Demand was also improving from the automotive sector, which remained hit due to extended semiconductor shortages.
Asia Pacific
The prices of Melamine rose effectively across the Asia Pacific region in Q3 of 2021. Strong values of feedstock Urea and prolonged supply crises due to an array of challenges like port congestion, high freight costs, and plant closures in China in compliance to the dual energy norms adhered to a strong push to Melamine prices in India throughout the quarter. CFR price for Melamine 99.8% Purity grade shot up from USD 1364/MT to USD 2781/MT in India from July to September. Buyers turned cautious due to the optimism prevailing from early inquiries in wake of the upcoming peak demand season across Asia. In China, high price of upstream urea continued to affect the producer’s margins while downstream buyers cautiously awaited ease in the domestic prices.
Europe
In the European region, the pricing trend of Melamine witnessed a steep rise during the 3rd quarter of 2021 on the back of the consistent demand from the building and construction sector. Strong values of upstream Urea and supply crises have pushed the Melamine prices in Europe during this quarter. Buyers turned cautious in Q3 due to escalations in Natural Gas pricing and tight domestic supplies across the region. Availability remained a key issue as delayed imports arriving from Asia created a backlog.
For the Quarter Ending June 2021
North America
The North American region observed a seasonal hike in the Melamine demand outlook as downstream enquiries from the building and construction sector picked up in the second quarter. Spot buyers turned up to replenish the inventory levels ahead of the upcoming hurricane season. Supplies in the North American showed improvement from the previous quarter as the industrial infrastructure recovered from the damages incurred during the winter storm in Q1 and the producers ramped up the operation rates to fulfil the inflow of enquiries. Due to the high demand and limited supplies, Cornerstone Chemicals increased Melamine prices by USD 440.92 per MT in May. The FOB Texas pricing discussion was assessed at USD 2611 per tonne in June.
Asia Pacific
During the first half of Q2, several Chinese Melamine producers seemed more export oriented amidst tight supply outlook in the Asia Pacific region. Manufacturing facilities in China were operating at higher levels even though the price spread between Urea-Melamine narrowed throughout the quarter due to the rising demand of Urea from the fertilizers sector. A key manufacturer in Japan declared planned force majeure amid the annual maintenance schedule. China’s Melamine demand outlook was majorly driven by the strong trading across the overseas market whereas Indian buyers were observed reluctant to procure large orders amidst pandemic-related uncertainties. In India, Melamine Ex-Works prices were assessed around USD 1366 in June.
Europe
Melamine supplies in the European regions were curtailed by a significant quantity, owing to turnarounds at some production facilities in the second quarter of 2021. However, imported Chinese shipments surged in the European market lending somewhat downward pressure to the overall product pricing during the quarter. Several European Melamine producers were heard complaining of deteriorated margins due to ample Chinese imports. Demand surged in the second quarter due to consistent offtakes from the building and construction sector.
For the Quarter Ending March 2021
North America
Melamine supplies were severely tight during the first quarter of 2021 in the North American region, the plant shutdowns in the USA Gulf region due to the unprecedented severe freeze weather conditions which led to the power outages in several production units that hindered the availability of key feedstocks. Demand surged ahead of the better offtakes from the downstream sectors. The regional buyers became more flexible towards the Asian market to procure the commodity which showcased the improved arbitrage from the Asia Pacific region. The prices in the North American region were hiked due to tight supplies and better offtakes from the downstream sectors, followed by high shipping freight charges.
Asia-Pacific
Melamine supplies were ample during the first quarter of 2021 in the Asia Pacific region, as several plants in China and southeast Asian region were heard operating at maximum capacity. During the second half of the quarter, supply constraints prevailed as various plants in China stopped production on account of the Chinese lunar new year holidays. The demand outlook was improved during the first quarter. In February, India extended anti-dumping duty against Chinese Melamine in vanguard of cheap imports. The prices of Melamine in India during March were assessed around USD 1232/ton.
Europe
Melamine supplies were short the European region, due to reduced imports from the USA amid bad weather conditions, followed by the transport hiccups which capped the supplies of raw materials. The arbitrage from the Asian suppliers were improved throughout the quarter. In February, Borealis, a leading European company dealing in base chemicals, fertilizers and the mechanical recycling of plastics announced to divest from its fertilizers segment including technical nitrogen and melamine products. Melamine supply-demand gap widened during the quarter due to some shortages which led to surge in prices of product throughout the quarter.
For the Quarter Ending September 2020
Asia
Melamine market in Southeast Asia remained dull during the quarter ending September, weighed by the sluggish demand from downstream industries against ample production in China. As China was observed exporting ample cargoes to the neighboring countries, India announced an anti-dumping probe on Melamine imports under the plea by its domestic manufacturers. Furthermore, mounting inventories of feedstock Urea in India, also lent a downward pressure on its prices. Since the overall demand remained uncertain, buyers were seen adopting a wait and see approach depending upon the spot demand. Owing to the sluggish offtakes of the product, its prices in India traced a downward trajectory in Q3 of 2020. Melamine was assessed around USD 939 per MT CFR Mundra.
North America
With several plant shutdowns heard in the Gulf Coast region, following the spates of seasonal Hurricanes, supply of Melamine in North America remained dull throughout the quarter. Likewise, Cornerstone Chemicals, a leading producer of Melamine in the U.S. was seen implementing production turnaround at few of its units in Louisiana as a precautionary measure. However, operations at downstream companies were not severely hindered by the supply shortage as most of them had enough inventories to cater to the spot demand. As per regional traders, Melamine is likely to rebound by the next quarter as the market will be operating at full swing to replenish the sputtering economy.
Europe
The European Melamine market remained oversupplied as various Asian countries were seen dumping their cargoes in the region in order to widen export revenues in times of weak domestic demand. Although the demand fundamentals of Melamine remained plagued by the uncertainties caused by Coronavirus, several manufacturers reported a marginal revival in demand compared to the previous quarter. Demand from the construction sector also improved with increase in number of do-it-yourself (DIY) home renovation projects.
