Melamine Prices Continue to Rise in USA Amidst High Demand

Texas (USA): Melamine prices have been steadily increasing in the domestic market of the USA in February 2024, generating considerable attention from both consumers and industry experts. Melamine is extensively used in laminates, decorative surfaces, and coatings for construction and building materials. This upward trend in Melamine prices in the USA market is primarily driven by increased demand from downstream industries such as furniture, laminate, and other end-use sectors, as well as high prices of feedstock urea.

In the US, Melamine prices have been buoyed by steady demand from the construction sector, driving active inquiries from downstream laminate manufacturers. Throughout February, elevated feedstock prices were sustained by strong demand from the downstream fertilizer market. Furthermore, China's reduction in urea exports prompted international buyers to turn to the US market, further fueling demand. Limited material availability domestically led to increased consumer purchases, exacerbating the strain on supply. The insufficient supply of Melamine to meet demand led to reduced inventory levels, exerting upward pressure on Melamine prices. This price hike was further supported by the expansion of manufacturing activities in the US, indicating robust growth in the sector.

The US construction sector has surpassed expectations, driven by strong single-family homebuilding and favorable mortgage rates. The Federal Reserve's commitment to lowering interest rates has been crucial, especially in the residential sector, where new single-family projects have seen a 1.4% uptick. Amid positive market conditions and high demand for new homes, the construction industry in the US continues its growth trajectory. According to the US Bureau of Labor Statistics, significant job growth has been recorded in the construction industry, with a year-over-year employment increase of 2.5%, resulting in the addition of 197,000 new jobs. This growth has further spurred active inquiries for Melamine in the domestic US market in February. The robust expansion in the construction sector has translated into increased demand for Melamine downstream, with the assessed price reaching USD 2004/MT FOB-Texas in February 2024, marking a 2.4% rise from the previous month.

In conclusion, the analysis suggests that the price of Melamine is poised to continue its upward trajectory in the coming month. This forecast is driven by anticipated robust demand in the downstream industry, signaling a favorable shift in market dynamics. Additionally, global demand is expected to see further improvement, contributing to the sustained upward trend in Melamine prices.