Hydrobromic Acid Market Stays Strong Amid Rising Demand and Global Supply Shuffles

The US Hydrobromic Acid prices have noted stability in August 2024 as the key market demand and supply fundamentals have offset each other. The demand for Hydrobromic Acid has remained firm in the US market backed by a positive approach from the consumers in the downstream pharmaceutical industry. Rising demand for pharma products in the USA has considerably benefitted the Hydrobromic Acid market. Additionally, as the US relies on the Asian and European nations for its Hydrobromic Acid supplies, the effect of higher freight charges has continued to impact the market.

U.S. chemical production levels have been steadily increasing this year. In Q1, around half of the companies reported a rise in production for chemicals including Hydrobromic Acid. Building on this strong start, 89% of companies indicated that production remained stable or grew compared to the previous quarter, according to the American Chemistry Council. Reports also highlighted a strengthening domestic demand, with new orders increasing in Q2.

For the domestically produced Hydrobromic Acid, the cost pressure has also evaporated as the upstream Bromine market had also stabilized during this timeframe. As per the market participants, the conflict in the Middle East that led to reduced production activities in the Dead Sea region now has a moderate impact on the prices of Brominated compounds including Hydrobromic Acid.

Recently, slight panic regarding logistics was noted. Global chemicals giant LyondellBasell declared force majeure on all rail shipments to Canada following the shutdown of operations by the country’s two largest railroads, which occurred after negotiations for a new collective bargaining agreement reached an impasse. Canada and Mexico are two of the major consumer markets of Hydrobromic Acid in North America. However,  The lockout of union employees, which posed a threat to North American logistics, lasted just eighteen hours. The Ministry of Labor issued an order ending the lockout and mandating the commencement of binding arbitration between the carriers and the union.

The overseas Hydrobromic Acid shipments arriving from the Asian markets, China to be more specific, have noted a few developments. Demand for ocean container shipping from China to North America continued to reach record levels as importers hastened to secure their supplies amid the global disruptions caused by the conflict in the Red Sea.

Moreover, the potential ILA port worker strike at U.S. East Coast and Gulf ports in October continues to loom, adding pressure to ship goods from Asia. Similarly, there are reports of early shipments across the Atlantic in anticipation of the potential strike, though rates on that route have stayed flat. Meanwhile, prices to the West Coast saw a more than 10% rise last week due to mid-month General Rate Increases (GRIs) by some carriers. However, skepticism remains about whether these or any further price hikes will hold, as there are reports of carriers offering some discounted rates below spot levels.

As per the ChemAnalyst pricing intelligence, the prices of Hydrobromic Acid are presumed to demonstrate resilience in the upcoming weeks on the back of solid industry performance and continued demand from the pharmaceutical industry.