Early April has witnessed stable Bromine prices in Israel despite a range of challenges, from rising inventory levels to uncertain geopolitical risks affecting the broader economy. The market players are focusing on maintaining a sense of equilibrium even though global demand trends shift and logistics become more challenging. The ambiguity regarding tariffs has also added to the challenges for Israel’s export market.

Israel, a global leader in the bromine market, along with its partners ICL, Jordan Bromine Company, and Albemarle Corporation, is in control of more than two-thirds of global bromine production. Its access to the highly concentrated bromine reserves of the Dead Sea gives it a unique benefit over other producers of bromine.

However, the region is facing heightened geopolitical issues at present. Geopolitical tensions have compounded significant complexity to Israel’s export processes. The situation in the Red Sea has become particularly tense in recent weeks with threats from the Houthi group targeting Israeli vessels. This threat has forced shipping companies to reroute the vessels around the Cape of Good Hope, increasing the shipping time significantly and further raising associated costs. As a consequence, the freight and insurance costs have surged, and the exporters are now facing a growing risk of premiums for doing business in the region. Moreover, these logistics issues are not only impacting prices but also putting stress on the entire supply chain timelines and reliability.

In spite of these hurdles, production in Israel remained strong throughout March and into April. The facilities have been maintaining higher run rates, supported by constant access to material and steady regional operations. On the other hand, international buyers especially India and China are taking a careful approach to new procurement. As a result, shipping volumes have slowed somewhat, and inventories within Israel have started to build.

Historically, bromine utilization rates dip during the Lunar New Year particularly from Asian markets, only to begin to ramp up in late March. While some improvements have been observed, the bromine market has yet to return to full scale in terms of downstream demand.

Looking ahead, the ChemAnalyst database anticipates an optimistic outlook for Israel’s bromine market. While the present demand scenario remains somewhat moderate, underlying structural demand is expected to improve gradually. As major economies adjust their procurement strategies and begin to procure, the inquiries might pick up. Additionally, long-term drivers such as growth in smart electronics and agricultural products are likely to increase the need for brominated flame retardants.