Fishing Magnets,Retrieving Magnet,Magnet Fishing Neodymium,Retrieving Magnets Neodymium Anfeng Industrial Co.,Ltd , https://www.afmagnets.com
As global resource prices continue to rise, the production of melamine—primarily derived from urea—is becoming increasingly concentrated. The expanding applications of eco-friendly downstream products, such as melamine-modified urea-formaldehyde resins, have driven steady growth in international demand, with this trend expected to extend further into the future. At the recent "Second China Melamine and Downstream Industrial Development Promotion Summit," industry leaders noted that the global melamine sector is showing stronger signs of industrialization, scale, and integration, highlighting the shift toward more efficient and consolidated operations.
With rising costs for key raw materials like crude oil and natural gas, several major producers in the U.S., Japan, and South Korea have either suspended or reduced their melamine output. For example, companies like Japan's Mitsui and U.S.-based Cyanamide have cut production by over 50%, with Mitsui exiting the market entirely in February of last year. This has created a gap in supply, prompting leading global players to seek new strategic footholds.
Dutch company DSM, the world’s largest melamine producer, recently announced plans to restructure its European operations and expand its influence through joint ventures or sales in other regions. In 2008, DSM finalized an agreement with Shanxi Fengxi Fertilizer in China, and on February 28 of this year, it officially launched a joint venture. Meanwhile, Lurgi’s 40,000-ton-per-year project in Russia is set to begin operations in June, while AMI’s 80,000-ton plant in the Middle East is under construction, with a projected start date in 2009.
Experts predict that future global melamine production will be concentrated in Asia, the Middle East, and the Black Sea region. As the industry evolves, self-downstream conversion is becoming a necessary strategy for long-term sustainability. Industry analysts highlight how the U.S. and Western European markets have maintained strong growth, supported by innovative technologies and large-scale production models.
In the U.S., companies like Cytec have successfully expanded their product lines based on melamine, offering over 50 downstream products across coatings, adhesives, and resins. Similarly, in Europe, BASF and Linz have high internal conversion rates, ensuring technical leadership and product innovation. These companies not only produce melamine but also develop advanced downstream applications, reinforcing their market dominance.
With energy prices expected to remain high in 2008, some smaller plants may struggle to stay operational, leading to potential production cuts. However, strong demand from Europe, North America, and Southeast Asia suggests a favorable outlook for the industry. According to Yan Haibo, this supply-demand imbalance presents a positive opportunity for melamine producers before new large-scale projects come online.
Melamine’s versatility makes it a key component in various industries, including wood processing, plastics, paper, textiles, and leather. It is used in flame retardants, water reducers, formaldehyde scavengers, and as a raw material in pharmaceuticals and fertilizers. With ongoing research into new applications, the market for melamine is expected to grow significantly in the long term. As the industry becomes more integrated and efficient, the pace of development is accelerating, signaling a bright future for the global melamine sector.