Firm Demand and Price Pressures Drive Sodium Bromide Market in Europe Amid Economic Recovery

Barcelona, Spain: The Sodium Bromide prices in Spain rebounded in June 2024 owing to higher raw material prices and improvement in consumer demand. Inquiries for Sodium Bromide from downstream industries in Germany, a key importer, have increased due to low material availability in the consumer market, boosting demand. Rising natural gas prices have also led manufacturers to raise their prices. European markets have shown slight improvement this month, driven by restocking ahead of the summer vacations, thereby benefitting the Sodium Bromide market.

Additionally, the overall chemical business climate seems more stable. Managers' views on order books have improved slightly, though they still indicate limited demand. While uncertainty about the future business situation has decreased in retail trade and services, it has remained steady in industry and construction. For June 2024, the prices of Sodium Bromide FD Barcelona were assessed at USD 1640/MT.

Moreover, after significant declines in Q1 2024 due to a mild winter, natural gas prices rebounded in mid-June. By the last week of June, U.S. and European natural gas prices had risen by 80% and 25%, respectively, compared to their March averages. The surge in U.S. prices was fueled by increased demand for power generation and anticipated higher flows from U.S. LNG export terminals in the coming months. In Europe, concerns over recent outages contributed to the price increase. Additionally, both markets benefited from strong LNG demand from Asia. This has led to higher manufacturing prices of Sodium Bromide.

The EU27 specialty chemicals include segments like paints and inks, crop protection, dyes and pigments, and industrial auxiliaries. Despite being produced in smaller quantities, specialty chemicals including Sodium Bromide account for over 25% of total chemical sales in the EU27. Consumer chemicals are directly sold to end-users, including products like soaps and detergents, as well as perfumes and cosmetics.

Demand for Sodium Bromide from the downstream oil and gas drilling sector has shown signs of improvement both domestically and in European markets, ahead of seasonal restocking activities before the summer holidays. Purchases of Sodium Bromide have increased due to immediate needs, while local inventories remain low across the region. Furthermore, delayed import shipments have impacted the European market, exacerbating the current surplus and leading to price pressures on the Sodium Bromide market as well. These factors have collectively created a difficult operational environment for producers and distributors in the region.

According to ChemAnalyst pricing intelligence, Sodium Bromide prices are expected to continue rising in the coming weeks. Strong consumer demand and improved economic conditions in Europe are projected to drive growth in the Sodium Bromide market.