melamine Pricing Assessment

Markets Covered:

China

India

Vietnam

Brazil

Egypt

Australia

Netherlands

France

Turkey

Melamine Price Trend, Analysis and Forecast

In Q1 2024, Melamine prices in China fluctuated around a 3% increase compared to Q4 2023, driven by ongoing market dynamics, including supply chain factors, demand fluctuations, and international trade considerations. In Europe, melamine prices saw a notable 9% increase compared to Q4 2023, with the Netherlands being a major exporter to France, driven by growth in key sectors such as automotive, construction, and consumer goods.

In Q2 2024, Melamine prices in China decreased by approximately 7% compared to Q1 2024. This decline was mainly attributed to lower prices of key feedstocks like urea and ammonia, which helped reduce production costs, enabling producers to lower their prices. In Europe, melamine prices showed a 2% increase compared to Q1 2024, driven by continued robust growth in the automotive, construction, and consumer goods sectors, contributing to sustained demand for melamine-based products.

In Q3 2024, Melamine prices in China are expected to stabilize or potentially see a modest increase, driven by demand recovery and production adjustments. Fluctuations in the prices of feedstocks, including urea and ammonia, will continue to impact melamine production costs. In Europe, melamine prices will be influenced by sustained demand from key industries like automotive and construction, with increased activity in manufacturing and seasonal demand contributing to higher prices. The cost variations of feedstocks will continue to affect production costs, influencing pricing strategies.

In Q4 2024, Melamine prices in China will be influenced by fluctuations in the prices of key feedstocks, such as urea and ammonia. Continued demand from key markets like Brazil, India, Vietnam, Egypt, and Turkey could support price increases, provided these regions experience strong demand recovery. Global economic conditions and geopolitical developments will play a role in shaping market expectations. In Europe, melamine prices are expected to stabilize, reflecting a mix of steady demand and seasonal influences. Stakeholders in both regions will need to remain vigilant in monitoring trends in raw material prices, market conditions, and economic indicators to make informed decisions as the year concludes.

Why Price-Watch?

Price-Watch is your trusted resource for tracking global sodium lauryl sulphate price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the sodium lauryl sulphate market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, Price-Watch keeps you fully informed of market dynamics.

In addition, Price-Watch provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With Price-Watch, you gain a competitive edge in understanding all the elements that influence sodium lauryl sulphate prices worldwide. Stay ahead of the curve with Price-Watch’s reliable, accurate, and timely Lactic Acid market data.

Track Price-Watch’s sodium lauryl sulphate price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

Historically, several events have caused significant fluctuations in melamine prices

Russia-Ukraine Conflict (2022): The Russia-Ukraine conflict, which escalated in early 2022, has had significant repercussions on global commodity markets, including the melamine sector. The conflict has disrupted supply chains, affected feedstock availability, and contributed to rising prices across various chemical products.

Melamine is primarily produced from urea, and the conflict has impacted urea supply chains, particularly as both Russia and Ukraine are significant players in the fertilizer market. Disruptions in urea availability have led to increased costs for melamine production.

The conflict has caused volatility in global energy markets, particularly natural gas, which is a critical feedstock for ammonia production (a precursor to urea). Rising energy costs have further exacerbated the price increases in melamine.

Texas Winter Storm (2021): Many chemical plants in Texas were forced to shut down due to freezing temperatures and power outages. This included facilities that produce key feedstocks for melamine production, leading to a decrease in overall supply.

The winter storm impacted the supply of natural gas, a critical feedstock for ammonia production (which is used to make urea, a precursor for melamine). Reduced availability of these feedstocks further strained melamine production.

COVID-19 Pandemic (2020): In the early months of the pandemic, melamine prices saw a decline as demand weakened and production slowed.

Geopolitical Tensions (2018-2019): U.S.- The U.S.-China trade war initiated in 2018 led to tariffs on various chemicals, including melamine and its feedstocks. This increased costs for manufacturers and created volatility in prices, as companies adjusted to new tariffs and sourcing strategies.

Shale Gas Boom (2010s): The shale gas boom led to an increase in the supply of ethane, a key feedstock for the production of melamine and ammonia. This abundance resulted in lower prices for these feedstocks, which are essential for producing urea, the primary precursor for melamine.

Global Financial Crisis (2008-2009): the onset of the financial crisis, melamine prices dropped as demand plummeted and excess inventory built up in the market.

As economies began to recover in 2010, melamine prices started to stabilize and gradually increase, driven by a rebound in demand from key sectors

Hurricane Katrina (2005): Hurricane Katrina in 2005 had a notable impact on melamine prices, driven by production disruptions, supply chain challenges, and increased raw material costs. The event highlighted the vulnerability of the chemical industry to natural disasters and the importance of robust supply chain management. Companies should remain vigilant in planning for such disruptions in the future.

These events underscore the Melamine market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.

Methodology and Specifications

Price-Watch melamine Pricing Assessment Research Methodology

Data Collection and Sources

Real-Time Market Data: Price-Watch aggregates real-time pricing data from a diverse range of sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures that our assessments reflect the most current market conditions.

On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including producers, suppliers, traders, and end-users, across major melamine production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.

Supply Chain Monitoring: We track the entire melamine supply chain, from raw material availability (e.g., Urea) to production and distribution channels. This includes monitoring feedstock prices, production capacities, and transportation logistics.

Event Tracking and Impact Analysis

Geopolitical Tensions: Price-Watch continuously monitors global geopolitical developments, such as conflicts or trade disputes, which can significantly impact melamine prices. Our analysis includes potential disruptions to supply chains and their immediate and long-term effects on pricing.

Natural Disasters and Climate Events: We assess the impact of natural disasters, such as hurricanes or winter storms, on melamine production facilities, particularly in vulnerable regions like the U.S. Gulf Coast. These events are factored into our price forecasts and supply outlooks.

Economic Shifts: Price-Watch evaluates macroeconomic trends, including global economic growth, inflation rates, and sector-specific demand (e.g., automotive, Construction), to predict shifts in Melamine demand and corresponding price movements.

Production Capacity and Supply Analysis

Current Production Monitoring: We maintain a comprehensive database of global melamine production facilities, tracking their operational status, maintenance schedules, and output levels. This allows us to assess current supply availability accurately.

Future Capacity Projections: Our research includes detailed forecasts of upcoming melamine production capacities, factoring in new plant constructions, expansions, and technological advancements. This helps in predicting future supply trends and potential price stabilization.

Demand Forecasting

Sectoral Demand Analysis: Price-Watch provides in-depth analysis of demand trends across key sectors, including packaging, automotive, and construction. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments.

Global Demand Dynamics: Our methodology considers regional demand variations and how they influence global melamine pricing. This includes understanding the impact of shifts in manufacturing bases, trade policies, and environmental regulations.

Pricing Model Development

Dynamic Pricing Models: Price-Watch utilizes advanced econometric models to forecast melamine prices, incorporating real-time data, historical trends, and projected market conditions. Our models are continuously refined to enhance accuracy and predictive power.

Scenario Analysis: We conduct scenario-based assessments to evaluate potential future market conditions. This includes best-case, worst-case, and most likely scenarios, helping our clients prepare for a range of market outcomes.

Reporting and Client Support

Comprehensive Reports: Our clients receive detailed reports that include current price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to be actionable, providing clear insights and recommendations.

Ongoing Support: Price-Watch offers continuous updates and personalized support to our clients, ensuring they have the most up-to-date information to make informed decisions. Our experts are available to discuss specific market developments and provide tailored advice.

This research methodology ensures that Price-Watch delivers the most accurate, timely, and actionable Melamine pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

126.12

CAS No

108-78-1

HS Code

29336100

Molecular Formula

C3H6N6

melamine

Melamine is a white, crystalline organic compound used in the production of laminates, plastics, adhesives, and coatings. It is primarily synthesized from urea through a condensation process. Melamine is widely used for its durability, heat resistance, and flame-retardant properties.

Packaging Type

25 Kg Bag

Grades Covered

Industrial Grade

Incoterms Used

FOB China, FOB Nether lands, CIF Nhava Sheva (China), CIF Alexandria (China), CIF Haydarpasa (China), CIF Hai Phong (Vietnam), CIF Santos (China), CIF Sydney (China), FD MARSEILLE(Netherlands)

Synonym

Cyanuramide

Price-Watch Quotation Terms:

25-28 MT

Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.

Subjects	Standards	unit
purity	99.50	%
moisture	0.1	%
Ph value	7.5-9.5	/
Ash content	0.03	%
Appearance	White powder without	foreign substance

Applications

Melamine is a versatile chemical compound with a wide range of applications across various industries.the production of durable and heat-resistant coatings, adhesives, and laminates. Commonly found in furniture, flooring, and decorative surfaces. Melamine-based adhesives are used for bonding materials in construction and manufacturing, providing strong and long-lasting bonds. Melamine is used in the production of lightweight, high-strength composite materials, often utilized in automotive and aerospace applications. Melamine resins are applied to paper products to enhance durability and resistance to moisture and chemicals. Used in producing packaging films and laminates that require high strength and barrier properties. Melamine’s versatility makes it a valuable component in numerous industries, from construction and automotive to consumer goods and textiles. Its unique properties, such as durability, heat resistance, and chemical stability, enable a wide array of applications, driving innovation and development in various sectors.

Disclaimer

Melamine price provided by Price-Watch is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for melamine. Price-Watch disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What are the primary factors affecting the price of melamine? +

The price of melamine is influenced by several factors, including raw material costs, particularly urea, and the availability of production capacity. Additionally, fluctuations in energy prices, transportation costs, and market demand in key industries such as textiles, automotive, and construction can significantly impact pricing. Regulatory changes and geopolitical events can also create price volatility.

How can supply chain disruptions impact melamine pricing? +

Supply chain disruptions, such as transportation delays, natural disasters, or geopolitical tensions, can lead to shortages in the availability of melamine. These disruptions can increase shipping costs and result in higher prices due to limited supply. Procurement heads should stay informed about potential disruptions and consider developing contingency plans to mitigate their impact on pricing and availability.

What strategies can procurement teams use to optimize melamine purchasing costs? +

To optimize purchasing costs for melamine, procurement teams can implement several strategies:

Long-Term Contracts: Securing long-term contracts with suppliers can provide price stability and ensure a reliable supply.

Market Monitoring: Keeping a close eye on market trends and price forecasts can help identify the best times to purchase.

Supplier Diversification: Working with multiple suppliers reduces dependency on a single source, which can mitigate risks related to price fluctuations or supply disruptions.

Bulk Purchasing: Taking advantage of bulk buying opportunities can lead to cost savings, especially during favorable market conditions.