Bromine Prices Face Challenges Amid Middle East Tensions and Global Supply Chain Disruptions

Texas, USA: During the month of January 2024, the Bromine market in the US has attained stability as no significant fluctuations in the prices were noted. However, the US Bromine market continues to remain influenced by the ongoing war between Israel and Hamas. The prices have declined on a monthly basis as the exporters continued to offer products at cheaper rates. As of January 26, 2024, the prices of Bromine Bulk CIF Houston were assessed at USD 2323/MT.

The demand for bromine from the downstream flame retardant and other end-use industries has improved over the past few weeks as the domestic market noted increased consumption. Additionally, the demand from the hydrobromic acid and other organobromine chemicals market also displayed signs of improvement.

Apart from this, the US economy exhibited a surprisingly robust performance in the final quarter of 2023, concluding a remarkably strong year. Despite elevated interest rates causing concern among businesses, both individuals and enterprises sustained substantial spending, showcasing resilience in the chemical industry as well including the bromine market. Recent data underscores the economy's strength, with GDP consistently growing at a rate of 2% or higher for the sixth consecutive quarter. Consumer activity emerged as a significant driver of growth in the last quarter. The overall expansion for the entire year of 2023 reached 2.5%, marking a noteworthy increase compared to the 1.9% growth recorded in 2022.

In the exporting nations, during the persisting conflict between Israel and Palestine, there has been distress regarding industrial activities, coupled with reduced operational efficiency among the manufacturers of bromine. The ongoing conflict between Israel and Palestine has led to a slowdown in exports from Israel including exports of chemicals such as bromine. Consequently, there is an increased dependence on Jordan for the supply of Bromine.

Additionally, The Israeli industries are anticipated to experience a nearly 50% reduction in annual funding for 2023, as per a report from Startup Nation Central. The decline is attributed to a combination of a planned judicial reform and the conflict with Hamas in Gaza, which has dissuaded numerous investors.

According to the ChemAnalyst database, the prices of Bromine are anticipated to demonstrate an inclining trend in the upcoming weeks, in the hopes of further ease in the Middle East including the ongoing issues in the Red Sea. As per recent data, there has been a more than 40 percent decrease in traffic through the Red Sea, causing disruptions in global supply chains. Major shipping operators worldwide have rerouted their vessels around the Cape of Good Hope at the southern tip of Africa, leading to delayed delivery times and an additional 3,000-3,500 nautical miles (6,000 km) added to their routes.