Rotterdam, Netherlands: In February 2024, the prices of Sodium Bromide decreased in the domestic market of the Netherlands due to low production costs and weak demand. Due to weak support from the upstream Bromine market, the prices of Sodium Bromide noted a downturn. The inquiries for Sodium Bromide from the downstream industries in Germany, the major importer of Sodium Bromide, have remained sluggish as the consumer market had adequate material availability, eventually pressuring the demand side.

On the other hand, industrial activities improved slightly in the region, as suggested by the manufacturing PMI data. India imports Sodium Bromide from European nations such as Spain and the Netherlands. In recent times, trade between India and Europe has faced challenges due to the Red Sea crisis, leading freight transporters to avoid the Suez Canal route due to security concerns in the region. Experts note that trade across the globe has been declining primarily due to global headwinds experienced by advanced countries.

This downturn is evident in economies such as Germany and the UK, which are displaying recessionary trends. Additionally, the freight rates have also remained at elevated levels, and the supply chain constraints continued to impact the trade of Sodium Bromide. Overall, business operations improved during this period, and increased trading activities in Sodium Bromide were noted in February. In the month ending on 23rd February 2024, the prices of Sodium Bromide FD Rotterdam settled at USD 1540/MT.

In February 2024, the Netherlands manufacturing PMI increased from the previous month, still indicating a contraction in industrial activities. However, this contraction was milder, with both new orders and output experiencing only marginal declines. Additionally, there was a slight increase in new export orders for the first time in more than a year. Cost pressures eased in February, with input costs declining solidly, albeit at the slowest pace in almost a year, while output charges saw fractional growth. Looking ahead, business confidence surged to its highest level in a year, buoyed by optimistic growth forecasts, planned expansion of product lines, and expectations of improving global economic conditions.

The demand from the downstream oil and gas drilling industry was weak in the domestic as well as other markets in Europe. The purchases of Sodium Bromide were primarily driven by immediate needs, while domestic inventories were adequate to meet current demand levels in the region. In February, the inflation rate in the Netherlands was reported to decline, based on the flash estimate by Statistics Netherlands (CBS). In January, the inflation rate stood at 3.2%. According to the ChemAnalyst database, the prices of Sodium Bromide are anticipated to decline further in the upcoming weeks due to poor demand in Europe and a decline in inquiries from other overseas markets as well.