Urea Formaldehyde Resins Price Trend and Forecast

Urea Formaldehyde Resins Regional Price Overview

Get the latest insights on price movement and trend analysis of Urea Formaldehyde Resins in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Urea Formaldehyde Resins Price Trend for First Half of 2024

Stay updated with the latest Urea Formaldehyde Resins prices, historical data, and tailored regional analysis
 

Asia

Urea formaldehyde resin prices exhibited minor oscillations throughout the first half of the year 2024. The prices closely followed the variations in feedstock methanol and urea prices. Since both the feedstocks showcased wavering price patterns, the upstream dynamics mostly remained muted for urea-formaldehyde resins in both Indian and Chinese markets. Therefore, the prices mostly fluctuated between close limits for the entire period. Moreover, the downstream demands also showcased buoyancy in the regional markets. With this, the price trajectory was almost stable for the said period of H1’24.
 

Urea Formaldehyde Resins Price Chart

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Europe

Urea-formaldehyde resin is a non-transparent thermosetting resin known for its high tensile strength, rigidity, and resistance to mold and mildew, making it a popular choice in the production of particleboard, plywood, and other wood products; it serves as an adhesive that binds wood particles together. Therefore, the demands from these consuming sectors determined the pricing trajectory for UFR during the first six months of 2024.

In the European markets, the prices had a positive start at the beginning of the first quarter in January, primarily because of the regional supply chain curtailments. However, as the domestic demands stabilized and the logistics showed some improvements, the prices started to fall again in the following months. Overall, a largely stable and wavering price graph was observed. In Europe, the monthly average prices went from about 811 USD/MT (FOB NEW) in January’24 to around 780 USD/MT in June’24.

North America

During the first half of the year 2024, the urea-formaldehyde resin prices in America mimicked the variations in their Asian and European counterparts very closely. The rates were found to be consolidated here as well. Along with the tepidness in crude oil prices, the domestic and global political and economic disruptions also influenced the urea formaldehyde resin’s price performance in the US market. Overall, the urea-formaldehyde resin prices remained anchored in America throughout the concerned period.

Analyst Insight

According to Procurement Resource, since the global crude oil prices have stared correcting slightly, the Urea Formaldehyde Resins prices are also expected to improve steadily over the next few months. A positive market performance is expected.
 

Urea Formaldehyde Resin Price Trend for the Second Half of 2023

Asia

In the Asian markets, particularly in China and India, the price trends for urea-formaldehyde resins were influenced by fluctuating prices of feedstock urea and formaldehyde. Initially, formaldehyde prices remained low due to declining methanol prices, while urea prices showed marginal growth owing to a balanced supply and demand dynamic.

As methanol prices rose around November, formaldehyde prices increased slightly, although the demand remained flat, resulting in a balanced market outlook. By the end of December, formaldehyde prices experienced further fluctuations, but the market consolidated due to stable sales and environmental restrictions. Meanwhile, urea prices showed a slight upward trend due to positive market sentiments.

Europe

In Europe, the pricing trends for urea-formaldehyde resins mirrored those in Asia, with frequent fluctuations influenced by varying demand and feedstock costs. Formaldehyde prices initially declined due to weakened demand and lower methanol costs. However, geopolitical tensions, such as the Israel-Hamas conflict, disrupted trade and logistics, leading to increased feedstock prices and freight charges.

Consequently, formaldehyde prices rose towards the end of the fourth quarter. Urea prices in Europe started slowly due to high inventories but surged later due to supply chain disturbances and high fertilizer demand during the peak winter sowing season.

North America

In North America, the price trends for urea-formaldehyde resins followed a similar pattern to those in Europe. Formaldehyde prices initially remained low but inclined during the latter half of the quarter due to rising feedstock prices, constrained supplies, and high demand. The urea market mirrored this trend, with better performance in the latter half of the quarter driven by supply disturbances and increased demand. Overall, the price trajectory for urea-formaldehyde resins in North America showed an upward trend by the end of the year.

Analyst Insight

According to Procurement Resource, the price trend of Urea Formaldehyde Resin is estimated to improve gradually in the next quarters; however, some month-on-month fluctuations might slightly alter this trajectory.
 

Urea Formaldehyde Resins Price Trend for First Half of 2023

Asia

The Asia-Pacific region witnessed high demand for urea formaldehyde resins and restricted supply that helped its prices to shoot up. Another major cause of this incline was the revival of Chinese market activities after the upliftment of COVID-19 restrictions and the Lunar New Year season.

However, in the second quarter, the prices moved feebly due to the lack of support from the feedstock market. The strong supply of urea formaldehyde resins in the market while the demand from downstream industries declined drastically, causing the price trend of urea formaldehyde resins to fall consistently.

Europe

In the first and second quarters of 2023, the prices of urea formaldehyde resins had a gradual decline. In the first quarter, the cost of feedstock materials depreciated by almost a double-digit percentage, affecting the price trend of urea formaldehyde resins negatively.

In the second quarter, in addition to the poor performance of the feedstock prices, the demand from the downstream industries remained subdued from both domestic and international buyers as the rates of consumption from consumers took a hit. The rates of export to overseas nations also took a hit, and due to that, the price trend of urea formaldehyde resins moved southwards.

North America

In North America, the price trend of urea formaldehyde resins was hit by the weak performance of the feedstock market in the first quarter of 2023. In addition to this, strong supply and low rates of procurements ultimately caused the level of inventories to shoot up, causing a reduction in urea formaldehyde resins prices.

In the second quarter, the decline was much more prominent in the months of May and June, as demand from the furniture and wood industries was almost negligible. And on top of this, the crisis in the banking sector raised the levels of inflation and interest, hampering the prices of urea formaldehyde resins.

Analyst Insight

According to Procurement Resource, the price trend of Urea Formaldehyde Resins is expected to showcase a negative trajectory as the purchasing potential of buyers is declining, and high uncertainties in the economic conditions are estimated to affect the urea formaldehyde resins prices negatively.
 

Urea Formaldehyde Resins Price Trend for Second Half of 2022

Asia

Poor demand for urea formaldehyde resins in the Asia-Pacific region led to a fall in their price trend. The downfall in the prices of fertilizers was the major contributor to this subdued demand for urea formaldehyde. An ample supply of urea formaldehyde resins in the region and low rates of procurement ultimately resulted in a decline in the price trend of urea formaldehyde resins in the last two quarters of 2022.

Europe

The third quarter of 2022 was favorable for the movement of the prices of urea formaldehyde resins in Europe. In this region, the rates of production of urea formaldehyde resins were affected by the costs of natural gas due to delays in shipments and the ongoing Russia-Ukraine crisis. However, in the fourth quarter, the price trend were hit by surplus availability of the product, low rates of procurement, and fluctuating freight charges. In addition to this, Russia imposed high quotas on imports that further increased the availability of the product in the region, hampering the growth of the urea formaldehyde resins price trend.

North America

The price trend of urea formaldehyde resins declined gradually in the third quarter of 2022 and steeply in the fourth. The major cause of this decline was the poor purchasing potential of buyers during this time frame. In addition to this, the downstream sector was also affected by declined rates of exports as the number of inquiries from the overseas players failed to provide the urea formaldehyde resins market the required support.

Analyst Insight

According to Procurement Resource, the price trend of Urea Formaldehyde resin is estimated to decline due to lackluster demand from downstream industries and feeble performance of the global markets.
 

Urea Formaldehyde Resins Price Trend For the First Half of 2022

Asia

Due to China and India being the major manufacturers of urea formaldehyde resins and having the largest consumer bases, the Asia Pacific region currently has the largest market for urea formaldehyde, and this trend is anticipated to last into the forecast period. The need and demand for food are growing along with the population, and as a result, agriculture operations are continuously evolving. The Asia-Pacific region will use more urea-formaldehyde resins as a result of these changes, which depend on fertiliser performance and efficiency.

North America

The urea formaldehyde market is anticipated to experience tremendous growth in North America, with the US predicted to lead the majority of regional expansion. Various uses in architecture and construction are sustaining urea formaldehyde market sales in the US. As observed from the urea formaldehyde price trend, North America witnessed an upward slope in Q1 of 2022.

Latin America

Due to an increase in construction activity, nations like Brazil and Mexico are also generating a significant amount of demand for urea formaldehyde. Additionally, these nations' automobile industries are also experiencing a major increase, which will create favourable conditions for market growth. As a result, urea formaldehyde resins prices are witnessing an upward trend.
 

Urea Formaldehyde Resins Price Trend For the Fourth Quarter of 2021

Asia

In Asia Pacific, formaldehyde prices increased in October before declining in the final two months of the quarter. Rising natural gas prices added to the expense of feedstock methanol during the first half of Q4, resulting in a sharp increase in downstream product pricing.

The price decline in the later part of Q4 was mostly due to lower methanol prices and an influx of imports from China. In the fourth quarter of 2021, urea prices also rose. Urea formaldehyde resin prices increased due to growing feedstock prices.

Europe

In Europe, urea prices improved significantly in the fourth quarter. Its price in European markets rose due to higher feedstock ammonia prices, increased input costs due to the energy crisis, and rising natural gas prices.

Moreover, increased freight rates and a scarcity of shipping containers played havoc on its prices in the third quarter. However, prices of formaldehyde fell in Q4 compared to Q2 and Q3 as a result of ample supply and weakening demand in Germany, Belgium, and other European countries. As a result of the lower methanol costs, the price of formaldehyde has also dropped. Demand for formaldehyde in the resin industry has also decreased.

North America

Due to a large increase in the price of raw materials, the price of urea surged in the fourth quarter of 2021 in the North American region. However, when compared to Q2 and Q3, formaldehyde prices remained on the low side. Feedstock methanol prices declined in the United States in the fourth quarter of 2021, owing to a slowdown in industrial applications and fuel consumption, as well as an increase in Omicron instances.
 

Urea Formaldehyde Resins Price Trend For First, Second and Third Quarters of 2021

Asia

Prices of urea have rose steadily across the Asian market, owing to increased demand from both the domestic and foreign fertiliser markets. Prices in China spiked in Q1 2021 as a result of a partial lockdown in response to an increase in daily COVID-19 cases. While this had little effect on urea production in the country, it did cause problems with road transit and exports.

Meanwhile, demand for urea in India improved from the previous quarter, and limited supply sustained its pricing. Due to an uptick in industrial activity across the region, demand for formaldehyde remained steady from its derivatives sectors like plastics and resins at first. However, methanol supply limits resulted in a formaldehyde shortage in the domestic market. The resin market followed the path of its feedstock and showed a downward trend in its prices.

In the second quarter, the price of urea in India rose due to increased seasonal demand from both the domestic and international markets. However, attitudes on the regional market for formaldehyde were divided across Asia Pacific. After years of steady increases, the price of the resin dropped significantly in August, aided by lower raw material formaldehyde rates in the market.

During the third quarter of 2021, the Asian market saw a major increase in the price of urea. The Chinese resin industry saw consistent demand for the compound, but the sector also reported low material supply. The lack of imports was partly owing to global agri-commodity markets' overall strength, China's temporary suspension of exports, and Western economic sanctions on Belarus. In the third quarter, formaldehyde prices were relatively stable.

Europe

During the first quarter of 2021, the European urea market saw steady domestic & global demand. The resins industry boosted its need for formaldehyde, but lower supplies created market tensions. Due to a lack of feedstock formaldehyde in the markets, urea formaldehyde resin prices increased significantly.

Due to the slow rate of economic improvement in the second quarter, demand for urea-formaldehyde remained modest to low. The average price stayed the same.

Urea formaldehyde resin prices surged sharply in the European markets in Q3 2021, owing to strong seasonal offtakes and rising fertilizer demand.

North America

In the first quarter of 2021, demand for feedstock urea climbed in the North American region, but prices remained high due to scarcity. Following a protracted winter storm and trade disruption, formaldehyde prices increased as well. The combination of these factors pushed up the price of resins on the market.

During the second quarter, the price of formaldehyde in North American markets fell overall. The resin manufacturers didn't benefit much from the cheap costs because demand was suppressed as a result of their pact. In this quarter, the cost of urea-formaldehyde was low.

In the third quarter of 2021, the market price of formaldehyde increased significantly. This was caused by its shortage in the regional markets. Feedstock urea received mixed reviews. However, as Q3 came to a close, the urea market gained traction as feedstock ammonia began to rise in response to rising natural gas costs. Overall, the cost of formaldehyde resin increased during the quarter.
 

Urea Formaldehyde Resins Price Trend For the Year 2020

Asia

China's urea shipments increased dramatically at the start of the fourth quarter. However, with the start of the Rabi season in India, its demand increased dramatically. The growing demand for urea in fertilisers limited the supply of this critical feedstock for resin production, raising urea formaldehyde resin prices.

Europe

In the fourth quarter of 2020, formaldehyde prices in Europe increased significantly. As a direct result of this price increase, the cost of resins has also risen.

North America

Due to lower demand at the conclusion of the agricultural season in the United States, supply of feedstock urea remained abundant in Q4. As harvesting drew to a conclusion, the overall rate of demand began to slowdown. Meanwhile, the cost of the formaldehyde skyrocketed. The combination of these factors resulted in an increase in  urea formaldehyde resin prices in US markets.

Procurement Resource provides latest prices of Urea Formaldehyde Resin. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.