The council unanimously adopted the statement of condemnation as Chinese President Xi Jinping arrived in Florida for his first meeting with US President Donald Trump.
Council members "expressed their utmost concern" about North Korea's "highly destabilising behavior and flagrant and provocative defiance of the Security Council."
North Korea fired the ballistic missile into the Sea of Japan on Wednesday in what was seen as a warning ahead of the US-China summit.
The KN-15 medium-range ballistic missile flew around 40 miles (60 kilometers), South Korea's defence ministry said.
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UN resolutions bar North Korea from developing nuclear and missile technology.
The council said it would closely monitor developments in North Korea and "take further significant measures," without elaborating.
The latest launch was a "grave violation" of Pyongyang's obligations under UN resolutions, it said.
US Secretary of State Rex Tillerson will make his first visit to the United Nations on April 28 to chair a council meeting on North Korea.
The council has imposed six sets of sanctions on North Korea -- two of which were adopted last year to significantly ramp up measures and deny Kim Jong-UN's regime hard currency revenue.
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