Hamburg, Germany: The German Sodium Bromide market has declined in Q3 2023 due to low demand circumstances. Poor demand has loomed large over the sector, notably in Europe, where high energy costs have forced enterprises to compete even though chemical exports have continued to beat imports significantly.

High energy prices and government procrastination on other chronic problems threaten to push new companies and high-paying jobs away, putting Germany at risk of deindustrialization. These setbacks have exacerbated long-standing structural issues such as labor shortages, growing trade barriers, increased bureaucracy, and a lack of investment in transportation, education, and digital infrastructure.

The European chemical sector is losing competitiveness in global chemical markets because of high regional energy and feedstock prices for Sodium Bromide and many other chemicals. The German Chemical Industry Association (VCI) predicted that its economic condition would worsen in the year's second half due to deteriorating demand. According to analysts, Germany is presumed to have long-term energy cost disadvantages compared to other industrial sites.

Although certain specialty sectors of the chemical industry, such as the Sodium Bromide market, saw more resilient demand than more commoditized materials, the higher margins of these commodities may have helped.

In August 2023, the Sodium Bromide FD Rotterdam prices inclined slightly by 1.5% to USD 1695 per tonne from USD 1670 per tonne in July 2023. This increase occurred in the domestic market of the Netherlands and was supported by a slight positive cost support from the feedstock. The rise in energy prices in the domestic market also contributed to the price increase. According to the market participants, the demand for Sodium Bromide increased in oil drilling, pharmaceutical, and detergent industries. However, the prices of Sodium Bromide have been continuously declining over the past few months as the eurozone entered a technical recession and the GDP of major economies fell in each of the last two quarters. Inflation in the Eurozone increased, owing mostly to increasing energy prices. In the downstream water treatment and oil drilling businesses, low demand was observed for Sodium Bromide, and purchases were primarily made on a demand basis.

According to the ChemAnalyst pricing intelligence, the prices of Sodium Bromide are expected to decline further in the following weeks. High interest rates, tighter credit conditions, and persistent inflationary pressures are anticipated to continue to influence the industries that chemical makers sell to. Chemical output is expected to shrink considerably in 2023 due to the Sodium Bromide industry's overall poor economic condition.