- Global melamine prices showed a sharp upward trend in Q1 2026, shifting from weak stability in January to a strong surge in March, driven by cost shocks and supply tightening.
- Feedstock pressure intensified as urea prices strengthened, further amplified by the Iran war and disruptions in the Strait of Hormuz, which severely impacted global fertilizer trade and raised production costs.
- Downstream demand improved gradually after the Spring Festival, with restocking in panel and coatings sectors supporting price transmission despite earlier weakness.
Asia
In China, the melamine price curve witnessed a fluctuating trajectory with an upward bias in the first quarter of 2026. The quarter began with weak demand and oversupply pressure, keeping prices soft despite slight cost support. Ahead of the Chinese New Year and Spring Festival, prices saw limited upward movement due to tight supply and firm urea costs. Post-holiday, demand recovery was slow, and prices remained largely stable due to balanced supply-demand conditions.
Entering March, the market surged sharply as the Iran war and disruptions in the Strait of Hormuz severely impacted global urea trade, tightening supply and sharply increasing costs. Around 35% of global seaborne urea trade was disrupted, while Iran’s exports declined significantly, triggering strong cost transmission across the melamine chain. Tight domestic supply, plant maintenance, and strong downstream restocking further accelerated price increases.
Europe
In Europe, melamine prices followed an upward trend, supported by rising import costs and tight global supply. The Iran war and Strait of Hormuz disruptions increased energy and fertilizer costs, directly impacting urea-linked production economics and supporting prices despite moderate demand.
North America
In North America, melamine prices also strengthened, driven by higher feedstock costs and global supply disruptions. Logistics risks and rising energy costs linked to Middle East tensions increased production expenses, while steady demand from construction and coatings sectors supported the market.