U.S. Bromine Market Stabilize as Demand Remains Stable; Holiday Slowdown Anticipated

Houston, USA: Entering November, Bromine prices in the US market have stabilized backed by a balance in supply and demand factors. Also, as the elections have concluded, most of the uncertainties have toned down. The U.S. Bromine market experienced steady demand, primarily driven by applications in flame retardants, drilling fluids, and agrochemicals. The demand outlook for Bromine remains stable, though some sectors, like electronics and automotive, have faced seasonal fluctuations.

Supply conditions tend to be balanced, although disruptions and production adjustments have caused short-term price fluctuations in recent times. Globally, supply chain issues and fluctuating freight costs have influenced Bromine prices, but the USA’s domestic production has maintained a stable output in recent weeks. In the downstream construction sector, the market is on track for steady growth and adaptation in 2025, following a strong performance in 2024, despite a slowdown in new project starts. Positive indicators throughout 2024 support projections for real growth by the end of 2025. While economic and political shifts temper some opportunities, the industry returns to key fundamentals, fueling steady growth across essential sectors including the Bromine market.

Moreover, the Israel-Hamas conflict has caused significant global supply chain disruptions, while diplomatic tensions between Israel and some trading partners have forced Israel to seek new suppliers for raw materials and products. Turkey recently imposed a full import/export embargo on Israel. With the Turkish embargo, additional quiet trade restrictions from other countries, and the extended and costly detour for ships around the Cape of Good Hope, Israeli manufacturers are actively seeking new resolutions. These disruptions have create a promising opportunity for U.S. suppliers to enter a market with high demand and reduced supply. As per the latest assessment, prices of Bromine CIF Houston were 2286/MT in the week ending on 8th November 2024.

In the consumer market, demand for agrochemical products remains relatively moderate, driven by inconsistent needs among farmers due to price changes, which also had impact on Bromine prices. Additionally, demand levels varied by region, economic conditions, and environmental factors, while production capacity had minimal influence on overall demand. As per a leading agrochemical manufacturer, in the third quarter of 2024, Crop Science sales declined by 3.6%. Sales of fungicides and insecticides rose significantly. Higher prices in North America boosted sales, though they were partly offset by price cuts in Latin America. Fungicide sales grew strongly, driven by higher volumes across all regions, while insecticide sales surged, primarily due to increased demand in Latin America.

The ChemAnalyst pricing team expects Bromine prices to decrease in the near future, driven by a slowdown in consumer demand and rising destocking activities in the region. During the holiday season in the U.S., demand for Bromine typically experiences a decline, driven by reduced industrial activities and lower production schedules. Many downstream industries, reduce operations or pause production around Christmas and New Year due to plant maintenance or holiday closures. This seasonal slowdown impacts Bromine procurement, with buyers holding back on large orders until the start of the new year.