Unexpectedly strong surge in urea costs to be passed on to adhesive prices

European adhesive resin producers are currently battling an unexpectedly strong rise in urea prices. Most manufacturers are trying to adjust their sales prices to reflect this increase in full during ongoing talks regarding July deliveries. By contrast, the slight reduction in the European methanol contract price brokered from mid-June onwards is having little impact. Moreover, the anticipated further decline in raw melamine prices is also to be considered when pricing melamine-reinforced adhesives and melamine impregnating resins. However, negotiations to hammer out prices for raw melamine deliveries in July or the entire third quarter did not commence until the final week of June and will likely last until at least mid-July again.