European Bromine Prices Hike Amid Geopolitical Tensions, Despite Weak Demand

Antwerp, Belgium: During the first half of October 2024, the European Bromine market has shown stability while the prices of Bromine have increased during the first half of the month, despite subdued demand across much of the region, particularly in Germany. Weak market activity continues to weigh on consumption, reflecting ongoing economic challenges in key sectors.

The growing concerns over supply disruptions have emerged due to escalating tensions between Israel and Iran, combined with an increasingly tense geopolitical climate in the region which has caused the prices of Bromine to rise. These factors are heightening uncertainty in the market, potentially influencing future supply dynamics for Bromine, which may lead to price fluctuations in the coming weeks as well.

The EU27 chemical industry continues to face challenges due to weak demand and declining business confidence. Energy costs remain higher than pre-crisis levels, making the sector less competitive globally. Despite a rise in production and notable export growth, the industry's competitiveness in Europe remains significantly below pre-crisis standards.

As per the latest data, in the first seven months of 2024, the imports of Bromine have significantly increased. In July, 1661.5 MT of Bromine was imports in the Europe. Most of the imports arrive at the Belgian ports from the overseas markets. However, recent figures from the National Bank of Belgium showcases a decline in Belgian foreign trade over the past few months compared to the same period last year was registered. Uncertainty around tax rates, the high cost coupled with rising interest rates, have all contributed to the slowdown.

In the major exporting nation of Bromine, Israel, the export values have deceased considerably in the first quarter of 2024. The export values of Bromine dropped by 30% in the first quarter of this year. Due to weak consumer demand for Bromine and to remain competitive in the market, the sellers continued to offer discounts.

Apart from this, The European Commission has launched an in-depth investigation into the use of aromatic brominated flame retardants, driven by growing concerns about their potential risks to human health and the environment. The initiative aims to produce a comprehensive report that will guide future regulatory measures and the development of safer alternatives. It will also explore alternative flame retardants that could serve as replacements, with the primary objective of ensuring effective flame retardancy without introducing unacceptable risks. This initiative has also impacted the Bromine market in the European region.

According to the ChemAnalyst database, the prices of Bromine are anticipated to remained somewhat stable in the upcoming weeks as moderate demand and irregular import rates of Bromine on the European ports.