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Melamine is used almost exclusively in the manufacture of melamine-based thermosetting resins, except in certain fire-retardant formulations, where melamine crystal is utilized. Melamine resins are produced by the condensation polymerization reaction of melamine with formaldehyde to yield melamine-formaldehyde resins. The three amino groups of melamine provide more possibilities for cross-linking to occur. The other important, but significantly smaller, use is in the production of flame retardants, especially for polyurethane foams. The high nitrogen content of both the resin and the crystalline monomer is the key desirable property that allows for the frequent use of melamine in flame-retardant formulations.
The timely implementation of stricter limits on formaldehyde emissions from composite wood products issued in April 2007 by the California Air Resources Board (CARB) could provide an opportunity for melamine. These regulations set lower standards for maximum formaldehyde emission levels for both raw composite wood products (hardwood plywood, particleboard, MDF) and finished products (including furniture, cabinets, flooring and doors) manufactured, sold or used in California. Other U.S. states and possibly other countries exporting into California are expected to adopt these new standards. Implementation will occur in two phases beginning on January 1, 2009 (Phase I) and ending in 2012 (Phase II). This could have a major impact on melamine demand since melamine-modified wood adhesives are considered a low-cost way to achieve lower formaldehyde emissions.
The following pie chart shows world consumption of melamine:
China has become the largest single country participant in the melamine market, accounting for nearly one-third of world consumption in 2007 and for 43%, 41% and 29% of world capacity, production and exports, respectively. This trend is expected to continue during 2008–2018, as significant growth in Chinese demand will result in the commissioning of additional capacity and increased production. However, China’s share of exports is expected to decline as a result of increased internal demand, competition from additional sources of supply from announced plants in the Middle East and Trinidad, and increases in Chinese melamine prices more in line with those seen on the world market. China is forecast to experience the fastest growth rates and volume increases in melamine demand during 2007–2012.
Overall economic performance will continue to be the best indicator of future demand for melamine. Demand in most downstream markets is greatly influenced by general economic conditions. As a result, demand largely follows the patterns of the leading world economies. The major end-use markets include construction/remodeling, automotive production and original equipment manufacture (OEM).
Additions to world melamine capacity have been announced in the Middle East, China and Trinidad. This capacity is scheduled for commissioning starting in the second half of 2008 through 2010 but will not be sufficient to meet projected world demand by 2012 and beyond. As a result, it is expected that additional investment in melamine capacity will be announced during 2009–2015. This additional capacity will most likely come from new facilities and/or expansions of recently constructed modern facilities due on stream during 2009–2012. Some of this additional capacity will replace the expected shutdown of older and inefficient melamine plants around the world in the same period.
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