U.S. Melamine Prices Drop Amid Decreased Demand

Washington, D.C., July 29, 2024--During the early weeks of July, melamine prices continued to decline in the North American market due to persistently low demand, reports ChemAnalyst, a digital platform that offers data and analysis on 400+ chemicals and petrochemicals in 40 countries.

“Procurement activities were cautious, reflecting ongoing challenges in balancing supply and demand dynamics,” the report states. “Seasonal factors such as heavy rains and severe weather, including hurricanes, further reduced construction activities, contributing to the decline in melamine prices.

“Amidst challenging market conditions, manufacturers in the USA grappled with high inventory levels as they struggled to find buyers for melamine. The slowdown in construction activity exacerbated this issue, leading to excess supply and further dampening demand. The overall inventory remained high, with downstream procurement focused mainly on immediate needs. The trading atmosphere was mild, with new orders purchased as required, while demand from downstream laminate and coating sectors continued to be sluggish.

“Demand from downstream sectors such as plywood, laminate and furniture remained weak as indicated by the fall in global lumber prices, falling below USD $450 per 1,000 board feet at the beginning of July for the first time since June 2020.”

Per ChemAnalyst, melamine prices are expected to continue declining due to reduced procurement in construction activities, which is anticipated due to seasonal factors like hurricanes that have hampered construction activities. High production in the previous month will also exert downward pressure on melamine prices, making it challenging for the market to recover in the near term, the site states.