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As global resource prices continue to rise, the production of melamine—especially those relying on urea as a raw material—has become increasingly concentrated. With the expanding applications of eco-friendly downstream products like melamine-modified urea-formaldehyde resins, international demand has steadily increased and is now extending further along the supply chain. At the recent "Second China Melamine and Downstream Industrial Development Promotion Summit," senior industry experts noted that the global melamine industry is showing stronger signs of industrialization, scale, and integration, reflecting a clear trend toward more intensive and efficient development.
The concentration of production bases has accelerated due to rising costs of basic materials such as crude oil and natural gas. Several major producers in the U.S., Japan, and South Korea have either suspended or reduced their operations. For instance, Japanese company Mitsui and U.S.-based Cyanamide have cut production by over 50%, with Mitsui completely exiting the melamine market in early 2023.
While some companies are scaling back, leading global players are actively seeking new strategic locations. Dutch company DSM, the world’s largest melamine producer, announced plans to restructure its European operations and expand influence through joint ventures or sales in other regions. In 2008, DSM confirmed its strategy by partnering with Shanxi Fengxi Fertilizer in China. On February 28 this year, they officially launched a joint venture. Meanwhile, Lurgi's 40,000-ton/year project in Russia is set to start production in June, and AMI’s 80,000-ton plant in the Middle East is under construction, expected to begin operations in 2009.
Wu Haibo, deputy general manager of Sichuan Meiqing Cyanamide, highlighted that future global melamine production centers will likely be located in Asia (particularly China), the Middle East, and the Black Sea region.
Downstream integration is becoming an essential part of melamine industry growth. Li Jian from the Beijing Triazine Xingda Chemical Research Institute discussed how the U.S. and Western European markets have long maintained high consumption levels in sectors like coatings, driven by traditional products and advanced surface technologies. The U.S. industry, known for its large-scale and efficient production model, ensures consistent quality and innovation. Companies like Cytec have expanded their product lines significantly, offering over 50 melamine-based downstream products, including coating resins, adhesives, and special additives.
In Western Europe, companies like BASF, Linz, and DSM not only produce melamine but also develop downstream products. BASF converts its 70,000-ton annual output into finished goods, while Linz achieves a 50% internal conversion rate. These leaders provide critical technical support and help drive innovation in new application areas.
With energy prices expected to remain high in 2024, some melamine plants may face continued operational challenges. However, strong demand in Europe, North America, and Southeast Asia means a growing gap between supply and demand. Yan Haibo noted that this situation presents a positive outlook for the industry, with international demand expected to rise before new large-scale facilities come online.
Melamine's versatility continues to drive market growth. It is widely used in the production of melamine-formaldehyde resins, valued for their non-toxicity, heat resistance, and chemical stability. Applications span wood processing, plastics, paper, textiles, and leather. It also serves as a flame retardant, water reducer, and formaldehyde cleaner, making it an environmentally friendly material. Additionally, it is used in rubber adhesives, fertilizer synergists, and even in pharmaceuticals.
According to Zhou Chunguo, technical service manager at DSM (China), the expansion of new applications will further boost melamine’s market potential. In the long term, the global melamine industry is expected to maintain its growth trajectory, with rapid development accelerating the pace of industrial intensification.