US Bromine Market Slows in August 2024, Economic Resilience Hints at Future Price Recovery

Texas, USA: In the early weeks of August, the Bromine market exhibited slight weakness in the US domestic market as consumer demand slowed down. Consumer inquiries for Bromine from the downstream flame retardant and other intermediate industries for the product have decelerated due to ample material availability by consumers in the US market. Despite improved economic conditions and increased consumer spending, the ongoing conflict between Israel and Palestine has led to reduced Bromine production, notably impacting Israel's Bromine exports. However, the effect has dissipated in recent times, easing pressure on the Bromine market.

As per recent data, the U.S. economy showed stronger-than-expected performance in the second quarter of 2024, driven by robust consumer spending, government expenditures, and a significant increase in inventory levels, according to an initial estimate from the Commerce Department. Real GDP, measured from April to June, grew at an annualized rate of 2.8% after adjusting for seasonality and inflation. This surpassed economists' forecasts of 2.1% growth, following a 1.4% increase in the first quarter. The growth was bolstered by strong consumer spending, private inventory investment, and non-residential fixed investment, as indicated in this preliminary report. This has resulted in boosted business confidence among the USA’s Bromine market players. The recent price assessment for Bromine Bulk FOB Houston stood at USD 2320/MT in the week ending on 9th August.

According to the market participants, the availability of Bromine was adequate in the domestic market and the consumer market demonstrated resistance to newer purchases. The majority of the Bromine arrives from Israel and Jordan in the US market. The manufacturers were operating at the usual pace. Freight rates from Asia to North America's West Coast are currently 6% lower than in mid-July. Despite an increase in volumes since May, ports in North America and Northern Europe have not experienced significant congestion or delays. US West Coast ports are prepared for any peak volumes or potential shifts in traffic, including a possible diversion of shipments from the East Coast due to a potential strike in October.

Demand for Bromine has slowed in recent weeks, with reduced inquiries from downstream industries like flame retardants and other intermediates in the domestic market. Additionally, the influx of new orders from overseas has decreased due to limited material availability.  The U.S. construction industry has demonstrated resilience despite global challenges, adapting to new demand patterns with varying growth rates. While construction starts are sluggish in certain areas and not all sectors are performing equally, overall construction spending has increased. Market confidence, improved margins, and stable material costs have contributed to a gradual rise in total costs. This demonstrates hopes for enhancement of the US Bromine market.

According to the ChemAnalyst pricing data, the prices of Bromine are anticipated to showcase improvement based on an anticipated increase in consumer demand.