Melamine Prices Explained

Melamine prices posted varying trends across the 4 global regional markets, with North America showing significant value fluctuations as energy prices and urea feedstock supported the strong cost pressure. Also, the gradual rebound of downstream demand strengthened its market sentiment.

While European demand showed quarterly declines, the flooding across Central and Eastern Europe, logistical challenges, and the steady demand from the adhesive sector supported its modest market trend. 

The South American region posted a bearish activity as high inventory levels and subdued demand from laminate and coating sectors dominated the market. Brazil experienced the most significant price changes, with a consistent downward trend throughout the quarters.

APAC showed similar sentiments as well. The market is crowded with ample supply while inquiries from laminates, coating, and wood panels remain tepid. Adding pressure is the slow construction activity in the region due to the unstable Chinese property investment.

Why are melamine prices fluctuating?

1. Industrial Applications

Its strong and durable polymers that can be coated and molded into various shapes are the top factors that warrant melamine’s marketability. Also, its lightweight, heat-resistant, and scratch-resistant properties make it a good coating material or laminating agent for paper, fabrics, and wood.

Moreover, the commodity’s manufacturers consistently innovate new melamine sustainable products like melamine fibers and foam which consistently gain traction from various end-user industries prioritizing low environmental impact product application.

2. Food Service Sector

The growing food service sector drives melamine tableware market growth. The increasing utilization of melamine dinnerware in cafes, restaurants, and lodging facilities stems from its affordability and durability. 

Additionally, the increasing practice of customization helps its selling point as it enhances dinnerware aesthetics and long-lasting properties.

3. Melamine Formaldehyde

The rising demand for high-performance materials with superior durability and heat resistance drives the melamine formaldehyde market. The construction and automotive industries rely on this commodity due to its ability to enhance the longevity and performance of products under extreme conditions. 

Advances in catalytic systems enabled a more efficient polymerization process, resulting in higher quality and consistency of melamine formaldehyde resin. The textile industry uses this commodity to improve wrinkle resistance in cotton and cotton-synthetic blends, boosting melamine prices. 

4. Competitive Alternatives

The market for melamine faces restraints from ceramic, glass, and stainless steel. The shift towards these alternatives comes from consumer concerns over formaldehyde emissions from melamine-based products and the environmental impact of their production. 

These materials are promoted by companies such as Vitro (a leading glass manufacturer) and Thermium (a stainless steel producer), which offer sustainable and durable alternatives to melamine formaldehyde.

Which variables impact the price of melamine?

• Industrial Applications
• Food Service Sector
• Melamine Formaldehyde
• Competition from Alternatives
• Production Costs

Where does melamine come from?

Melamine is a colorless crystalline compound whose derivatives are used as flame retardants. The chemical reaction produced by combining urea and hydrogen cyanamide creates melamine. 

Here are the basic steps in melamine production:

1. Melting and Evaporation – Urea is the primary raw material used in melamine production. It is melted in a tank and then put into the evaporation section. Then, the molten urea is evaporated under vacuum to remove excess water and impurities.

2. High-Pressure Reactor – It plays a crucial role in the production of melamine. This is designed to resist high pressure and temperature to change urea to melamine.

3. Decompression, Cooling, and Solidification – This is the final stage of melamine production. After a high-pressure reactor produces melamine, the gas is removed. The melamine is put to cool in the heat exchanger causing it to solidify.

What are the uses of melamine?

Melamine resin is used significantly in molded or laminated products, adhesives, and coatings. It is cured by heating which induces dehydration and is also used as the main constituents of high-pressure laminates such as flooring. 

Melamine has advantages such as transparency, hardness, thermal stability, boiling resistance, scratch resistance, flame retardant, and moisture resistance.

1. Decorative Laminates – It is used in decorative laminates and applied to surfaces like countertops, cabinets, and furniture. Its durability, heat resistance, and ability to mimic natural materials like wood make it a popular choice for residential and commercial spaces.

2. Adhesives and Coatings – Melamine-formaldehyde resins are adhesives in the woodworking industry to bond hardwood and fiberboard. These resins provide strong and durable bonds and are resistant to moisture and heat, making them ideal for furniture and construction applications.

3. Textile – It is incorporated into fabrics to enhance their fire resistance, making them suitable for upholstery, curtains, and other applications where safety is a concern.

4. Melamine Dinnerware – Its lightweight and break-resistant properties make it a popular choice for making plates, bowls, and cups.

5. Foams – Melamine foam is used for insulation and soundproofing in the construction and automotive industries. Its lightweight and excellent insulating properties make it an effective material for reducing noise and improving energy efficiency in buildings and vehicles.

What is the future price of melamine?

The end-user industry holds a significant melamine market share. BASF SE and Prefere Resins Holding GmbH are key players in this market as they utilize melamine resins in decorative laminates, wood adhesives, and coatings. 

Also, the construction and automotive sectors are major consumers of melamine-based products, with applications ranging from sound and thermal insulation to modular kitchen components. 

The increasing demand for melamine fiber and foam (known for their lightweight and insulating properties) contributes to product sustainability by reducing energy consumption and enhancing the longevity of end products. This aligns with the principles of a circular economy (where materials are reused and recycled to minimize waste and environmental impact), promoting sustainable consumption. 

On the supply side, the decreasing urea prices influence melamine supply and prices. This reduction lowers the production costs for melamine manufacturers, allowing them to produce melamine at a lower cost. 

As a result, the global supply of melamine increases, leading to a downward pressure on melamine prices. This trend is particularly evident in Asia, where the oversupply of urea and sluggish demand for melamine-based products have contributed to declining prices.

Overall, the global melamine market value is estimated to reach $2.31 billion by 2031 with a price tag of $1.95 per kilogram.