Barcelona (Spain): In March 2024, the Sodium Bromide market experienced a further downturn, with prices dropping in the domestic market of Spain due to low production costs and moderate demand. Weak support from the upstream Bromine market has also contributed to the decline in Sodium Bromide prices. Inquiries from downstream industries in Germany, a major importer of Sodium Bromide, have been sluggish due to sufficient material availability in the consumer market, thus exerting pressure on demand. However, industrial activities have shown improvement in the region, as indicated by manufacturing PMI data.

Recent challenges in trade between Asia and Europe, stemming from the Red Sea crisis, have prompted freight transporters to avoid the Suez Canal route due to security concerns. Global trade has been declining, primarily due to headwinds faced by advanced economies like Germany and the UK, which are showing signs of recession. Additionally, freight rates remain high, and supply chain constraints continue to impact the trade of chemicals, including Sodium Bromide. Overall, business operations improved during this period, and increased trading activities in the chemical sector, including the Sodium Bromide market, were noted. For March 2024, the discussed prices of Sodium Bromide FD Barcelona settled at USD 1580/MT.

In March, Spain’s Manufacturing PMI remained largely unchanged, slightly below February’s figure but still above market expectations. This latest reading indicated expansion in the factory sector, with both output and new orders experiencing growth. However, there was a notable lengthening of average lead times for delivery, mainly due to issues in the Red Sea region.

Spain's economy is experiencing a notable upturn, surpassing its European counterparts with strong growth figures, supported by robust domestic consumption and a favorable investment environment. In Q4 2023, the Spanish economy grew by 0.6% annually, following a 0.4% expansion in the previous period. This growth was primarily driven by resilient domestic demand, despite ongoing inflationary pressures and high interest rates.

Consumer demand for Sodium Bromide from the downstream oil and gas drilling industry was moderate in the domestic as well as other markets in Europe this month. Sodium Bromide purchases were primarily driven by immediate needs, while domestic inventories were adequate to meet current demand levels in the region. Looking at consumer confidence, Spain's inflation rate increased to 3.3% in March from 2.9% in the previous period through February. This uptick was driven by higher electricity prices, according to final data released by the National Statistics Institute (INE). While the underlying price pressures are declining, the gradual withdrawal of government measures designed to alleviate high energy costs could lead to a temporary uptick in inflation, which could impact the chemical industry, including the Sodium Bromide market.

According to the ChemAnalyst database, the prices of Sodium Bromide are anticipated to increase in the upcoming weeks, backed by improved consumer demand and eased inflationary pressures.