Urea Resin Prices

Urea Resin Prices June 2023

In June 2023, the price of urea resin in the United States amounted to 690 USD/MT. The United States market demonstrated a fall in comparison with Q1, which began in April with a minor decline and continued with substantial decreases in May and June. The driving factor behind this development was a fall in the demand for downstream wood and furniture, which began to decline following a significant 5.3% lumber price drop in April. The well-supplied urea-formaldehyde resin and the US banking crisis after April additionally magnified this decline, and the country’s high inflation and rising interest rates only increased the downturn in demand.

In the China market, the price of urea resin reached 627 USD/MT in Q2 2023. The reason for the weak trend was the low urea feedstock prices. The NBS data showed that industrial growth dropped from 5.6% in April 2023 to 3.6% in May 2023. This big decline signifies sluggish trading activities within China. Low urea feedstock prices made resin production less costly. Hence, the urea resin supply strengthened, causing the price trend to be bearish.

Besides this, the urea resin prices in Germany reached 634 USD/MT in June 2023. The low demand is attributed to weaker-than-expected product consumption, which resulted in negative procurement among buyers in Europe. Additionally, decreasing costs for the feedstock urea contributed to the market decrease. Despite high supply and the absence of production scheduled downtimes, the restrained demand can be explained by the unsatisfactory purchasing activity within the nation, lack of export inquiries, and the general inflationary pressure from the weak post-pandemic economic recovery in the European region.

Urea Resin Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Urea Resin Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” offers an in-depth analysis of urea resin pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of urea resin at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of urea resin price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing urea resin price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Urea Resin Market Analysis

The global urea resin market size reached US$ 11.45 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 15.3 Billion, at a projected CAGR of 3.30% during 2023-2032.

• Urea resins are used in the construction sector for their adhesive properties and resilience. The construction sector continues to grow, particularly in emerging economies, where more infrastructure projects are being developed to facilitate modern housing projects. According to the UNITED STATES CENSUS BUREAU and the US Department of Housing and Urban Development, new residential construction statistics in MARCH 2024, the seasonally adjusted annual rate for privately-owned housing completions was 1,469,000 . The completion rate for single-family homes during the same month was 947,000. Additionally, buildings with five or more units saw a completion rate of 502,000 in March. To meet this demanding market, the construction industry is using highly adhesive and strong building materials such as urea resins, contributing to the market growth. The product demand will keep growing with the expansion of the sector thereby propelling the market.
• The increasing applications of urea resins in the woodworking and furniture industries due to their excellent bonding properties, resistance to water damage, and cost-effectiveness are augmenting the market growth. These properties make urea resins ideal for particle boards, MDF, and plywood, which are the most utilized materials in furniture and interior carpentry. As per the data by IMARC GROUP the global wood furniture market size reached US$ 275.7 Billion in 2023. In the foreseeable future, IMARC Group anticipates the market to achieve a value of US$ 413.5 billion by 2032, demonstrating a compounded annual growth rate (CAGR) of 4.47% from 2024 to 2032. As the demand for furniture in the world continues to grow due to trends such as urbanization and increased consumer income, the use of urea resins is expected to grow significantly which will drive the market growth.
• The growing urea resin technology and formulations have been continually developed by experts to improve their performance further. Innovations that focus on enhancing thermal stability, adhesion quality, curing time, and environmental resistance have made urea resins more commercial in other sectors such as the automotive industry and electrical cleaning. Moreover, collaboration among key players to expand their product line is influencing the market growth. For instance, in August 2023, Bakelite Synthetics disclosed that signed an agreement to buy and acquire LEBG CHEMICALS, INC., a CANADIAN RESIN producer and developer with facilities in Longueuil, Montreal, Quebec. Both comprise approximately 1,500 employee’s workforce and 21 manufacturing facilities spanning 12 countries, enabling bakelite to extend its presence into Canada. This expansion will facilitate Bakelite in catering to the northeastern regions of both CANADA and the UNITED STATES. Thus, it will increase the performance of urea resins and expand their use in the market further propelling the market growth.

Urea Resin News

The report covers the latest developments, updates, and trends impacting the global urea resin market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in urea resin production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the urea resin price trend.

Latest developments in the urea resin industry:

• In August 2021, KBR announced today that it signed a partnership contract with JOHNSON MATTHEY and would license the existing FORMOX Integrated UFC Technology (iUFC). The modern technology synthesizes JM’s methods of methanol and UREA FORMALDEHYDE CONCENTRATE (UFC) production along with KBR’s proprietary ammonia technique. New plants could be developed with the low-cost manufacturing of high-spec UFC in mind, and the current ones may be converted accordingly.

Product Description

Urea resin is a type of thermosetting resin that finds wide applications across a range of industries, from adhesives to coatings to molding compounds. Urea resins are synthesized from a controlled reaction of urea and formaldehyde. The process, which occurs in the presence of a catalyst, usually an acid or a base, precipitates polymerization. This chemical process reacts urea with formaldehyde, forming long molecular chains that make the resin strong and resistant to heat. Besides, the type of intended use determines the methods of applying urea resin. For instance, in adhesives, urea resins are used to bond wood, laminates, and particleboard due to its strong adhesion characteristics. For coatings, the substance is used to increase scratch resistance and longevity of the surfaces, which, among others, are made of wood, metal, or plastic. Another use of urea resin is in molding compounds, where the demand for the product is on the rise to give various forms and cures that laminate to form strong and light products. Overall, urea resin is popular and widely used due to its strength, resistance to heat, and versatility.

Regional Coverage

The report provides a detailed analysis of the urea resin market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the urea resin price trend.

Global Urea Resin Price

The report offers a holistic view of the global urea resin pricing trends in the form of urea resin price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price of urea resin but also provides insights into historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed urea resin demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Urea Resin Price

The European region has experienced a bearish price trend due to lower product demand and the continuous increase in prices exacerbated consumer dissatisfaction, leading to further price declines resulting in manufacturers resorting to offer temporary discounts to clear their stocks. Additionally, reduced feedstock urea prices contributed to the overall depreciation of the market. Despite adequate supply levels and uninterrupted production, weak demand persisted due to limited purchasing activities domestically, subdued export orders, and broader inflationary pressures resulting from the European economy's sluggish recovery.

This analysis can be extended to include detailed urea resin price information for a comprehensive list of countries.

North America Urea Resin Price

The urea resin market in North America has experienced a decline due to weakened demand in the wood and furniture industry. This downturn was first noted in April and continued to deteriorate in May and June. Several factors contributed to this decline, including an oversupply of urea-formaldehyde resin, the banking crisis in the United States, and high inflation rates, all of which resulted in reduced purchasing activity. Additionally, low urea prices led to lower profitability for feedstock, decreased production of urea resin in June, and, consequently, further decreases in prices.

Specific urea resin historical data within the United States and Canada can also be provided.

Middle East and Africa Urea Resin Price

The report explores the urea resin pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices.

In addition to region-wise data, information on urea resin prices for countries can also be provided.

Asia Pacific Urea Resin Price

The urea resin pricing in the Asia Pacific region witnessed a significant decline, prompted by low feedstock urea prices. The decrease in the industrial growth rate implied that trading activities had weakened. Lower production costs and a strengthened supply chain accelerated the bearish price trend. Moreover, oversupply and low demand from the wood and furniture industry resulted in drastic price drops. Although the manufacturing capacity was normal and supply chains were not disrupted, the negative market sentiment forced the price to keep declining.

This urea resin price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Urea Resin Price

The analysis of urea resin prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of urea resin pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting urea resin price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The urea resin price charts ensure our clients remain at the forefront of the industry.