For the Quarter Ending September 2024
North America
In Q3 2024, the Bromine market in North America witnessed a significant decline in prices, with the USA experiencing the most notable changes. This quarter saw a multitude of factors influencing the market, leading to a decrease in prices. Demand from downstream industries like flame retardants and intermediates slowed down during this quarter, both domestically and internationally, due to adequate material availability.
Additionally, construction spending in the USA saw a decrease, impacting Bromine consumption. The ongoing conflict in Middle Eastern regions further disrupted imports, affecting overall market dynamics. Comparing Q3 2024 to the same quarter last year, prices have plummeted by 32.2%, reflecting the challenging market conditions.
Moreover, the quarter-on-quarter change in 2024 showcased a 6.3% decrease, with a consistent negative trend throughout the period. The second half of the quarter mirrored the overall downtrend, indicating stability in the decreasing prices. The quarter concluded with Bromine Bulk CIF Houston in the USA priced at USD 2146/MT, highlighting a persistently negative pricing environment.
APAC
In the third quarter of 2024, the Bromine market in the Asia Pacific region experienced mixed trends as the prices fluctuated. The quarter was characterized by varied pricing trends, with factors such as oversupply and weak demand dynamics, stable production rates, and moderate to high inventory levels influencing Bromine market prices. In China, which saw the most significant price changes, overall trends indicated a steady market environment. The current quarter recorded a substantial 26 percent decrease compared to the same period last year, reflecting the ongoing challenges in the Bromine market. However, from the previous quarter i.e., Q2 of 2024, there was no change in prices, indicating a period of price stabilization. The comparison between the first half and second half of the quarter also showed no significant price variations, highlighting a consistent pricing trend. The latest quarter-ending price for Bromine Exw-Shandong basis in China stood at USD 2449 per MT, underscoring the prevailing varied pricing sentiment in the region.
MEA
In Q3 2024, the Bromine market in the MEA region witnessed a period of decreasing prices, influenced by various significant factors. The market experienced a decline in prices due to subdued demand from downstream sectors like flame retardants and intermediates, leading to an oversupply situation. Additionally, the increased production rates in key exporting nations coupled with ample material availability further contributed to the downward pressure on prices. The ongoing geopolitical tensions and supply disruptions in the region also played a role in the pricing dynamics. Specifically focusing on the United Arab Emirates, the market saw the most significant price changes in Q3 2024. With a notable 20.5% decrease compared to the same quarter last year and a -5.6% decline from the previous quarter in 2024, the pricing trend remained negative. Moreover, there was a -1% price difference between the first and second half of the quarter, indicating a consistent downward trajectory in prices. The quarter-ending price of USD 2240/MT of Bromine CIF Jabel Ali in the UAE reflected the prevailing decreasing sentiment in the market.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, Bromine prices in North America witnessed a mixed sentiment influenced by several key market dynamics. The quarter witnessed a steady uptick in prices due to persistent robust demand from downstream flame retardant and intermediate industries. This heightened demand, coupled with decreased imports arising from geopolitical tensions in major bromine-exporting regions, exacerbated supply constraints. Additionally, rising logistics costs and increased ocean freight rates further contributed to the upward price pressure.
Focusing on the USA market, which experienced the most significant price changes, the overall trend showcased a persistent increase, underscored by strong industrial activity and increased consumption. The seasonality effect was pronounced, with unseasonal demand spikes in ocean freight from Asia, leading to further strain on the already tight supply chains. This context of rising demand and constrained supply set a bullish tone for the quarter.
Despite these factors, the price change from the same quarter last year reflected a 30% decline, indicating a significant drop from previous elevated levels. However, the prices showed a marginal decrease of 1% from the previous quarter in 2024, suggesting a relatively stable pricing environment within the recent quarters.
Concluding the quarter, Bromine Bulk CIF Houston in the USA settled at USD 2310/MT, reflecting the increasing sentiment driven by robust demand and supply-side challenges. Overall, the pricing environment for Bromine in Q2 2024 was marked by a positive trend, supported by strong market fundamentals and resilient industrial consumption.
Asia- Pacific
The second quarter of 2024 has witnessed a significant upward momentum in Bromine pricing within the APAC region, driven by several critical factors. Supply constraints and robust industrial demand have predominantly influenced the market, with import reductions and logistical challenges exacerbating the shortage. Downstream industries, particularly those involved in flame retardants and intermediates, have maintained a cautious procurement strategy, primarily purchasing based on immediate needs. This demand-driven approach, coupled with strategic interactions between suppliers and consumers, has spurred price increases. Additionally, escalating production costs and firm freight charges have further compounded the price rise, reflecting a complex interplay of supply chain disruptions and heightened demand.
In the context of China, which has seen the most pronounced price changes, the market trends have been particularly noteworthy. The region has experienced a 5% increase in Bromine prices compared to Q2 2023, indicating a robust recovery and growth trajectory. However, when contrasted with the preceding quarter of 2024, there has been a notable 12% decrease, highlighting a volatile yet progressively strengthening market. Notably, the price comparison between the first and second half of Q2 2024 reveals a substantial 17% increase, underscoring the burgeoning demand and supply pressures as the quarter progressed.
The overall pricing environment in China has been positive, driven by an intricate balance of demand-supply dynamics and external economic factors. The quarter concluded with Bromine prices settling at USD 2784/MT Ex-Shandong, marking a significant rise from earlier in the quarter. This upward trend reflects a stable yet bullish sentiment in the Bromine market, driven by persistent supply shortages, increased production costs, and strategic purchasing behaviors within the downstream industries.
MEA
The second quarter of 2024 has been marked by a dynamic pricing environment for Bromine in the MEA region, characterized by a consistent upward trend. Several significant factors have influenced market prices, contributing to this increase. Elevated freight charges across major sea trade routes have played a crucial role, as have supply-chain disruptions and geopolitical tensions that have exacerbated logistical challenges. Additionally, robust demand from flame retardant and related downstream industries has provided strong support for Bromine prices. The construction boom in the region has further bolstered consumption levels, driving up demand for Bromine-based products.
In the United Arab Emirates, the impact has been particularly pronounced, reflecting the highest price changes in the region. The overall trend in the UAE has been one of steady price appreciation, underpinned by consistent inquiries from local industries and ongoing construction activities. Seasonality has played a role, with demand peaking in alignment with construction cycles and industrial restocking. The correlation between increased demand and constrained supply has been evident, reinforcing the upward price trajectory.
Compared with a quarter-on-quarter, prices have risen by 2%, showcasing a resilient market. Within the quarter, prices showed a marginal 1% increase between the first and second halves, suggesting a steady yet modest rise. Concluding the quarter, Bromine prices in the UAE settled at USD 2443/MT CIF Jabel Ali.
Overall, the pricing environment for Bromine in the UAE during Q2 2024 has been positively skewed, driven by strong demand fundamentals and supply-chain constraints, despite underlying challenges.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Bromine market in North America experienced a significant decrease in prices. This can be attributed to several factors that influenced market dynamics. Firstly, there was a decrease in demand from downstream industries, particularly in the flame retardant and other intermediate sectors. This resulted in lower purchasing activity and a wait-and-see approach to procurement. Additionally, imports of low-priced goods put downward pressure on prices.
The situation in the USA, the largest market for Bromine in North America, mirrored the overall trend. Prices in the country saw the maximum price changes, with a decrease of 10% compared to the previous quarter. This decline can be attributed to the same factors impacting the overall market, including weakened demand and increased imports.
Furthermore, there was a seasonal aspect to the price changes, as the first half of the quarter saw a larger decrease (-3%) compared to the second half. This could be due to factors such as year-end holidays and reduced manufacturing activity during that time.
Overall, the pricing environment for Bromine in North America during Q1 2024 was negative, with prices experiencing a significant decrease. The latest quarter-ending price for Bromine Bulk CIF Houston in the USA was recorded at USD 2250/MT.
APAC
Bromine prices in the APAC region during Q1 2024 have experienced a significant decrease, with China being the most affected market. The overall trend for Bromine prices has been negative, influenced by various factors such as weak consumer demand, low operational rates in domestic manufacturing firms, and sufficient inventory levels. In China, the price of Bromine has seen a substantial decline compared to the same quarter last year, with a decrease of 37%. Furthermore, the price has dropped by 28% compared to the previous quarter in 2024. The price comparison between the first and second half of the quarter reveals a decrease of 18%. This decreasing trend can be attributed to seasonality factors, as well as the ongoing conflict in the Dead Sea region, leading to supply disruptions globally. As a result, market sentiments have been bearish, and the overall market situation has been characterized as stable to bearish. The latest quarter-ending price for Bromine in China is recorded at USD 2384/MT Exw-Shandong. Overall, the Bromine pricing environment in the APAC region during Q1 2024 has been negative, with prices continuously decreasing due to weak demand and ample supply.
MEA
During the first quarter of 2024, the Bromine market in the MEA region experienced a mix of positive and negative factors that influenced market prices. Overall, the pricing environment was stable, with slight fluctuations observed in some countries, particularly in the United Arab Emirates (UAE).
In the UAE, the prices of Bromine declined in January due to imports of cheaper goods. This was attributed to slowing demand from consumer markets, resulting in sellers offering products at reduced rates. However, the demand prospects for Bromine remained steady, supported by firm inquiries from domestic downstream flame retardant and intermediate industries.
In February, the prices of Bromine further declined in the UAE market due to increased inventories and low procurement activities. The ongoing conflict between Israel and Palestine also impacted exports from Israel, leading to an increased reliance on Jordan for Bromine supply.
In March, the prices of Bromine in the UAE market rebounded slightly, with a moderate increase in demand and inquiries from downstream industries. This was driven by steady economic growth in the non-oil sector and increased foreign direct investment in the country. However, the overall demand for Bromine was expected to slow down in the coming months.
Overall, the Bromine market in the MEA region experienced stable pricing trends during the first quarter of 2024. The market was influenced by factors such as supply shortages, conflict in the Middle East, and fluctuations in demand from downstream industries. The prices of Bromine CIF Jabel Ali in the UAE settled at USD 2316/MT at the end of the quarter.
For the Quarter Ending December 2023
North America
The North American Bromine market witnessed a bearish trend in the fourth quarter of 2023, with low to moderate supply and demand for the product declining further in the consumer market. The overall demand from the downstream industries, such as flame retardant and intermediate industries, reduced due to oversupply and the destocking of inventories by consumers, leading to manufacturers decreasing production rates in the domestic region.
The slow inflow of new orders from the overseas consumer market also impacted the market. The prices of Bromine were stable in the US domestic market, with no significant changes in market outlook observed, and the offered quotations remained unchanged. While, the imports from the Israel and Jordan were stable into the US market. The USA experienced the maximum changes in the price, and the market sentiments remained stable, with prices increasing marginally by USD 2579/MT.
The trend and seasonality of the USA market remained stable, with a no correlation price percentage. The percentage change in price from last year's same quarter remained at no change, and the percentage change from the current to the previous quarter was also at no change. The quarter-ending price of Bromine Bulk CIF Houston in the USA was USD 2579/MT.
APAC
The Bromine market in the APAC region during Q4 2023 demonstrated bearish sentiment due to poor demand from downstream industries. The overall supply chain had no major issues, with moderate supply and low to moderate demand. The inquiries from downstream flame retardant, disinfectant, and pharmaceutical industries decreased during the quarter. As per the industry experts, the market had ample material availability in the domestic market, enough to cater to the present consumer demand. In China, the demand from the downstream flame retardant and other intermediate industries remained steady, leading to a stable market situation. The supply was high, with domestic inventories increasing due to higher production outputs. The price of Bromine in China increased slightly due to increased consumer demand, with ample material availability in the domestic market. The price of Bromine Exw-Shandong in China at the end of Q4 2023 was USD 3554/MT. The percentage change in price from the previous year's same quarter was -45%, while the percentage change from the previous quarter was 34%. The price percentage comparison of the first and second half of the quarter in China was 7%. Overall, the demand from downstream industries is anticipated to improve in the future, leading to a potentially bullish market sentiment.
Middle East
The fourth quarter of 2023 witnessed a mixed performance for the Bromine market in the Middle East Asian region. Several factors influenced the market dynamics and prices during this period. The demand for Bromine from the downstream flame-retardant industry remained moderate, both domestically and overseas. Additionally, the inventories of Bromine in the domestic market were adequate, ensuring a stable supply. However, major exporting nations experienced lower production rates due to seasonal factors such as the monsoon season, leading to a decline in imports of the product. In terms of specific country analysis, the United Arab Emirates experienced significant price changes during the quarter. The fluctuations were attributed to the overall market situation, which was initially bearish but turned stable later in the quarter. Additionally, the supply of Bromine in the UAE remained moderate throughout the quarter. Comparing the current quarter to the same period last year, there was a significant decrease in prices, with a percentage change of -48%. However, the quarter-on-quarter comparison showed a minimal price change of 1%, indicating relative stability in prices during this period. In summary, the Bromine market in the MEA region experienced mixed performance during the fourth quarter of 2023. Factors such as steady demand, adequate inventories, and fluctuations in major exporting nations influenced the market dynamics and prices. The latest price of Bromine CIF Jabel Ali in the UAE for the current quarter is USD 2530/MT.
For the Quarter Ending September 2023
North America
The US Bromine market showcased a mixed pricing trend in the third quarter of 2023. The prices fluctuated throughout the period due to weak demand in the downstream flame retardant and other intermediate industries, imports of low-priced goods, and high material availability in the regional markets. In the first month, consumer inquiries from both domestic and international markets declined, resulting in bearish market sentiments in the area. On the supply side, product imports slowed down due to adequate material availability in the region. In the second month, the prices were overall stable as no significant changes in the market outlook were observed. Additionally, high-interest rates, high inflation, and slow demand conditions across the globe also impacted the market outlook of Bromine in the USA. On the other hand, the imports of cheaper goods from Israel and Jordan also led to low prices of products. As of September 2023, the prices of Bromine in the USA were assessed at USD 3268 per tonne.
APAC
In the third quarter of 2023, the Bromine market in APAC demonstrated mixed sentiments. In the first month, the prices declined slightly in the Chinese market due to weak demand from flame retardant and other intermediate industries. However, from the last week of July onwards, the prices rode an upward trajectory throughout August. Come August, with the approach of the monsoon season, the production of seawater bromine brine reduced, resulting in a decline in the product's availability in the domestic market. Inquiries from downstream flame retardant and other intermediate businesses were found to be stable. The market transactions were average, and the trading mood was light, whilst product purchases were mostly based on demand. In September, the prices of Bromine fell in China's domestic market due to a resurgence in the product's manufacturing rates. As the weather conditions in the region improved, so did the output of bromine brine. However, on the demand side, the downstream flame retardant and other intermediate industries provided average support, and purchases were mostly based on a need basis. As of September 2023, the prices of Bromine were assessed at USD 3453 per tonne.
Middle East
In the third quarter of 2023, the market sentiments for Bromine observed a bearish outlook, and the prices declined month-on-month. Sluggish demand, high inventories, and low production costs were a few of the factors that supported the price decrease in Q3. Throughout this period, the price fell by a significant margin due to lower demand from the downstream flame retardant and other intermediate industries. The product's stockpiles were found to be substantial, but with decreasing customer demand, the overall pricing trend turned unfavorable. Domestic manufacturing businesses maintained regular outputs and sufficient material availability in terms of production. Moreover, amid the poor performance of China's economic recovery momentum, the demand inquiries from the downstream flame retardant and other intermediate industries were low. Consequently, the Middle Eastern Bromine manufacturers continuously lowered their product prices. In this period, no major port congestion or supply-related issues were observed. As of September 2023, the prices of Bromine in Jordan were assessed at USD 2819 per tonne.
For the Quarter Ending June 2023
North America
The Bromine market in the USA observed mixed market sentiments in the second quarter of 2023. The offered quotations remained stable during the month of April 2023 with adequate inventory stocks and new production to cater to the downstream flame retardant and other intermediary industries. In the month of May, the bromine prices showed a bullish trend as Standard Lithium signed a Joint development agreement with Koch technology solutions for the Arkansas brine harvesting project, which has affected the pricing of Bromine in the region. In June, the prices remained stable and showed a slight decline as downstream demand from flame retardant industries remained weak due and adequate inventories with downstream industries. The demand for Bromine is estimated to increase in the next quarter as the US is investing heavily in energy storage devices where bromine-based solutions hold a possible future. 20MWh California project to sustain and improve bromine-based energy storage solutions by RedFlow recently showed promising results. Prices of Bromine FOB Texas were settled at USD 3819/MT on 30th June 2023.
APAC
The bromine market in Asia showed mixed market sentiments in the second quarter of 2023. The offered quotations remained stable during the month of April 2023 with adequate supply and inventory stocks for the downstream flame retardants and consumer products industry. In the month of May till mid of June 2023, there was a bearish stance in the market. The price of upstream sulfur increased while the inventory stocks remained adequate. The downstream flame-retardant market demand declined as Bisphenol prices also fell during May and June 2023. The bromine prices remained stable from mid-June till the end of Q2 as supply remained adequate and demand from the flame retardant industry improved in the domestic market. Inflations Reduction Act, 2022 of the United States has led to a decline in Bromine prices in domestic Chinese markets since August 2022. The Act provides for mandates of procuring from North American counterparts, which is affecting China’s exports to the US. Prices of Bromine FOB Qingdao were settled at USD 2893/MT in the month of June 2023.
Middle East
The bromine market in the Middle East showed a bullish trend in the second quarter of 2023. Jordan export volumes increased by 10% YOY in the quarter, reflecting good market sentiments. Domestic market inquiries show increased demand from downstream flame-retardant industries in Q2 2023. The OPEC+ petroleum cut has affected the increment in bromine demand from the oil and gas industry. The Jordan Environment Union (JEU) on Wednesday called for swift measures to be taken to remove dry grass in forest areas to curb the possibility of fires. Jordan Bromine Company is also celebrating 20 years of successful operations, and the investors are assured good dividends this year. Export performance in the European markets improved in this quarter. The price rise seems to indicate improving profit margins and overall business performance. The overall supply chain operated at an increased pace, and no constraints were registered this week. Prices of Bromine FOB Aqaba were settled at USD 5365/MT in June 2023.
For the Quarter Ending March 2023
North America
The bromine market in the USA observed a bearish pricing trend in the first quarter of 2023. The offered quotations remained stable in the first month of Q1, with a slight drop in the last week amid moderate demand and sufficient availability of the product in the region to cater to the downstream demand from fire retardant and intermediate industries. In the second month of Q1, the market prices slipped down due to a weaker demand outlook and sluggish inquiries from the consumer market. Also, the inquiries from the overseas market plummeted in this period amid inflationary pressure and uncertainties regarding economic conditions. In the last month, the market prices dropped further as the market participants were not willing to indulge in the procurement of Bromine, and slower imports of the product were registered in this period.
APAC
In the first quarter of 2023, the Bromine market observed a bearish pricing trend in the Chinese domestic market. In the first month, the market prices remained in a downward trajectory due to a drop in downstream demand from flame retardant and intermediate industries as the temperature fell in the region. In the second month of Q1, the market prices of Bromine declined further as the global demand dynamics were unstable and overseas demand was below average. Also, the production rates dropped amid sufficient availability of the product, enough to cater to the limited downstream demand. In the last month, the price slipped down due to the widening of the supply-demand gap. Also, the demand outlook was reported to be sluggish in this period. Thus, the market prices of Bromine Ex-Shanghai settled at USD 4249 per tonne at the end of Q1 2023.
Europe
The Bromine market in the European region exhibited a declining pricing trend in the first quarter of 2023. In the first month, the market prices plummeted amid imports of low-priced products as the exporting nations slashed the profit margins to avoid piled-up inventories in the market. In the second month, the offered quotations dropped further amid a weaker demand outlook as the downstream consumers in the fire retardant and intermediate sectors were reluctant to place new orders for the product. Amid uncertain market conditions and inflationary pressure, in the third month of Q1, the overall market prices in Europe plummeted, and bearish market sentiments for Bromine prevailed in the region. Also, the manufacturing PMI dropped this month due to a decline in new orders and lower input costs.
For the Quarter Ending December 2022
North America
Overall, the Bromine market in the North American region observed mixed market sentiments. The offered quotations for Bromine witnessed a slight jump during the first half of the quarter followed by a slight plunge in the latter half. Even though the fourth quarter has been traditionally the offseason for Bromine, the market remained bullish during the first half of the quarter as the slow activities in China and the resumption of arbitrage with the European region kept the traffic of fresh inquiries inbound. However, in the latter half, the demand outlook dropped, and the European market lacked market competitiveness amidst the higher energy prices and soaring inflation. In addition, the arbitrage has dropped in the latter half amidst the hindrance over transportation activities. Therefore, the FOB Houston discussion for Bromine was assessed at USD 5736 per tonne in December 2022.
Asia Pacific
Overall the Bromine market in the Asia Pacific region has observed mixed sentiments based on subregions. The Chinese players have dropped the run rates to comply with the regulations and rules enforced by the Chinese authorities to restrict power consumption. In addition, the COVID situation in China has kept hindering arbitrage with the overseas market. In response, the Bromine market persists on a bullish trajectory, followed by a slowing down in the second half as the Bromine market entered a seasonal off-trend. As a ripple effect, the FOB Dalian average monthly discussions for Bromine peaked highest at USD 6522 per tonne in November 2022. Whereas the prominent south-east Asian markets consistently persisted on a bearish trajectory throughout the fourth quarter of 2022.
Middle-East and Africa
In the fourth quarter of 2022, the Bromine market in the Middle East and Africa region observed a mixed outlook. The first half observed a considerable uptrend in the first quarter as the demand outlook for Bromine improved after the inquiries flooded the Jordan market in October and early November 2022. However, soon after, the European players cumulatively decided to drop the run rates to sustain the netbacks. As the profit margins in some industries were negative after analyzing the current supply-demand scenario amidst the high energy cost. In addition, the seasonal off-trend for Bromine has also started resulting in a plunge in the offered quotations in the domestic market. As a ripple effect, the FOB Aqaba discussions for Bromine were assessed at USD 5444 per tonne in December 2022.
For the Quarter Ending September 2022
North America
Overall the Bromine market in the North American region has persistently witnessed a staggering upward trend in the third quarter of 2022. This development is majorly attributed to the restocking practices initiated by the downstream market participants ahead of the hurricane season to avoid disruptions across the values chain. Albemarle's aggressive midstream push in unlocking values in the Bromine division focuses on products derived from halogen. The recent results of Q2 released by Albemarle indicated that the net sales were USD 378 million, up by 46% higher than Q2 last year. In addition, the sales have also been trending up in the US domestic market, supporting the enthusiasm amongst the producers. As a ripple effect, the FOB Houston discussions for Bromine averaged USD 5720 per tonne during the September quarter.
Asia Pacific
In the third quarter of 2022, the Bromine market in the Asia Pacific region witnessed mixed sentiments based on sub-regions. The Northeast Asian market saw a bearish movement in the offered quotations, while the Southeast Asian markets witnessed a bullish trajectory. This trend was majorly comprehended by understanding the supply-demand dynamics against the netbacks drawn by the market participants that varied across countries, even in the sub-regions. The bearish trend was primarily concentrated in the Chinese markets as the economy's poor performance, rising inflation, power rationing, and uncertainty regarding COVID curbs have proportionally impacted the demand in domestic and overseas markets. Consequently, the FOB Qingdao discussions for Bromine averaged USD 7150 per tonne in September.
Middle-East and Africa
The Bromine market in the Middle-Eastern region maintained bearish sentiments during the third quarter of 2022. However, the pricing quotations have consistently fluctuated within a range. The producers have varied the operating rates at the manufacturing facilities to sustain netbacks. Whereas due to the mixed demand outlook, the market remained suppressed for most of the period. The spot European inquiries were absent, although several contract-based orders were placed for late September to October deliveries. Thus, the FOB Aqaba discussion for Bromine was assessed at USD 5487 per tonne in September 2022.
For the Quarter Ending June 2022
North America
In North America, Bromine's price outlook witnessed a stable trend throughout Quarter 2 of 2022, backed by constant offtakes amid surplus inventory availability in the North American market. Stability in the queries from China due to COVID 19 lockdown restrictions in China and high inflation pressure amid War led to upward stability in the prices for the product. Low support from the downstream demand for Bromine's costs was seen in North American countries in June. The supply-demand gap remained tight in the country throughout Quarter 2 of 2022. In Addition, Force Majeure in Primary Chlor Alkali, Olin resulted in a shortage of feedstock Sodium Bromide and Chlorine.
Asia-Pacific
Asia pacific prices of Bromine witnessed a downward trend throughout Quarter 2 of 2022 due to the low demand from the downstream flame retardant industry amidst prohibition of overseas supplies as a consequence of covid 19 lockdown restrictions in China. Enterprises were compelled to reduce the Bromine prices to obtain stable offtakes in the local market of China amid bearish buying sentiments amongst local buyers. Moreover, the currency depreciation against the US dollar caused downward pressure on the prices throughout the 2nd Quarter of 2022.
Europe
European market of Bromine witnessed stability upward with an overall inclination of 1% in Quarter 2 of 2022 due to high inflation rate and strong support by the demand fundamentals from the downstream flame retardants industry in April. Meanwhile, traders and sellers in the region were heard offering the product at a reduced price to spot buyers to recover from the supply disruptions in the region. Escalation in Russia-Ukraine geopolitical tension led to depreciation of the Europe currency (Euro) against the US dollar, which ultimately impacted the price trend of Bromine in the European Region. Moreover, high energy values caused upward pressure on the input costs of Bromine, and enterprises indulged in passing the cost burden to the consumers in this Quarter.
For the Quarter Ending March 2022
North America
In North America, Bromine price outlook witnessed stability throughout Q1-2022 backed by stable offtakes amid ample material availability in the US market. Stability in the queries from China was observed in first quarter due to market closures as a result of strict Covid restrictions amidst resurgence of Covid in China. As a result of reduced demand from China, traders and manufacturers of Bromine in USA lowered the prices to maintain stable offtakes in the domestic market of USA. Demand-supply gap remained narrow in the country throughout the first quarter of 2022. Bromine price were assessed at USD 4590/MT FOB Houston during the final week of March.
Asia Pacific
Bromine prices in the Asia-Pacific region remained volatile in the first quarter of 2022. Prices of Bromine in the month of March witnessed a fall due to low demand from downstream flame retardant industry amidst prohibition on international supplies on resurgence of Covid 19 in China. Bromine prices were assessed around USD 8876/MT FOB Qingdao during the month of March. Manufacturers were compelled to reduce the prices to restrain the fall in offtakes within China. Prior to the last week of February, prices of Bromine showcased an upward trend due to low inventories levels and surged demand from downstream agrochemical and pharmaceuticals.
Europe
In Europe, Bromine witnessed stability due to consistent demand from downstream flame retardants industry in the month of January. Russia-Ukraine geopolitical tensions led to production cuts and energy crisis in the European region. Traders and sellers in the region were heard selling the product at a reduced price to spot buyers, to recover for the conflict induced losses. Manufacturers were compelled to reduce the prices in order to maintain stable offtakes in the domestic market amid inability to cater to the international demand. Bromine prices in Europe fluctuated by nearly 2% in Q1-2022.
For the Quarter Ending December 2021
North America
In North American region, Bromine prices maintained a trend like the previous quarter as rising freight and energy costs continued to exert upward pressure on the prices of non-fuel minerals. Demand from the downstream Hydrogen Bromide markets remained strong through the first two weeks of Q4. In the month of November, Bromine prices were observed to be modest as USA significantly invested in oil and gas drilling activities. A leading manufacturer in its quarterly results revealed that surging demand for Bromine derivatives from the flame retardants sector, have kept the sales volume strong in Q3 and the trend is likely to continue throughout Q4. Bromine FOB bulk prices in USA reached USD 4580 per MT in late-December.
Asia
In Asian market, market sentiments of Bromine remained mixed in Q4 2021. In October, Bromine prices rose substantially following the shortage in supply and increased downstream demand. In China, repercussions post dual energy norms, such as traffic at the Chinese ports coupled with the tightened availability of freight vessels raised the elemental Bromine quotations. This was majorly attributed to the robust trading after the holidays, which caught the spot market players off-guard. However, Bromine prices dropped steeply by late-Q4 as buyers restrained to purchase cargoes absorbing the steep rise in prices of Bromine. In India, it was heard that there is enough availability of Bromine in the market, however the excessive cost pressure has made it challenging for niche buyers to procure cargoes. Bromine China prices after reaching record high in October finally settled at USD 9730 per MT in the final week of December.
Europe
European market witnessed a significant hike in the prices of Bromine in Q4 2021 in lieu of consistent dullness in imports amidst prevalent demand from the downstream sectors. Climatic disruptions continued to stress the availability of the product at times of prominent demand. As Europe imports most of the Bromine from overseas therefore gradual ease in freight charges and increase in availability led to a marginal ease in its prices towards the end of the quarter. However, prices remained at elevated levels in comparison to the previous quarters.
For the Quarter Ending September 2021
North America
In North American region, Bromine market outlook witnessed an uptrend during the third quarter backed by the surge in the demand for Bromine and its derivatives from downstream sectors. In US, Bromine market sentiments remained high followed by the increased production rates and improved offtakes from downstream industries in the beginning of the quarter. However, in the latter half of the quarter, several manufacturers were compelled to shut their production facilities ahead of the Ida hurricane as a part of an emergency plan. Hence, curtailed production rates and increment in the feedstock prices due to its scarcity contributed to inflate Bromine prices during this quarter.
Asia
In Asian market, Bromine prices witnessed a downward trend backed by sufficient supplies and weaker demand by the downstream sectors in the region during Q3 of 2021. In China, prices of Bromine plummeted because its downstream industries operated at low rates owing to the low buying momentum and strict environmental regulations. FOB Qingdao Bromine prices stood at USD 6650/MT in September showcasing a decline by around UDS 371/MT since July. Indian market also marked drop in the prices of Bromine throughout the quarter aided by the cheaper imports from major exporting countries which compelled the manufacturers to revise their prices to maintain competitiveness in the market. Ex Mumbai Bromine prices in September were assessed at USD 5406.51/MT showing a decline by USD 116.46/MT from the prices in July.
Europe
In Q3 2021, the European market witnessed a proliferative hike in the prices of Bromine because of lower imports and steady demand from the downstream sectors including electronics. Constrained availability sent ripples to the prices of Bromine and its derivatives throughout the quarter. As Europe imports most of the Bromine from overseas therefore extremely high freight charges and delayed shipments arrival also contributed to hike the pricing of Bromine in the region during the third quarter.
For the Quarter Ending of June 2021
North America
In North American region, the demand for Bromine and its derivatives remained well supported in the second quarter of 2021. Quarterly offtakes improved from the downstream buyers amidst strong market sentiments to replenish the inventory levels ahead of the upcoming hurricane season in the next quarter. Traders stocked up actively amid rising enquiries from the flame retardant manufacturers and improvement in the exports segment. Bromine supplies in the North American region improved as several producers ramped up run rates to mitigate the impact of winter storm Uri that disrupted operations in Q1. Amidst sharp uptick in the global Bromine rates and high operational costs, the Bromine pricing in USA observed a gradual increment with FOB Michigan June prices assessing at USD 4690 per tonne.
Asia Pacific
Bromine supplies in the Asia Pacific region were tight during the second quarter of 2021, as the regional Bromine manufacturers witnessed skyrocketing demand from the downstream Bromine derivatives sectors as the enquiries were piled up since the Lunar New Year holidays in February. One of the key Bromine manufacturers in China halted operations at its multiple facilities amidst the government regulatory restrictions. Lack of availability pushed up the Chinese Bromine offers which reached an all-time high in May. FOB Shanghai Bromine discussions in June were assessed at USD 6970 per tonne, showing an increment of 21.22 % from the prices in April.
Europe
Bromine supplies in the European market were curtailed amidst lack of imports as several Asian producers reported curtailed operations amidst stricter environmental regulations. Demand for the brominated flame retardants remained firm from the electronics sector. Traders reported high priced shipments arriving from China with consumers facing the brunt of high shipping charges and tight regional supplies. Lesser inventory levels and high operational costs were the key factors driving the global uptrend in the Bromine pricing.
For the Quarter Ending March 2021
North America
The supplies in the North American region remained limited during the first quarter of 2021, owning to the repercussions of the polar winter storm in the US Gulf region. The industrial infrastructure collapsed, and plants were forced to shut their production during the mid-February. However, restocking activities from the previous quarter under the stress ahead of winter season reduced the impact over the prices of Bromine which averaged around USD 4480 per tonne FOB Michigan. Demand witnessed a tremendous uptrend as the offtakes improved from the downstream chemicals and pharmaceutical industries.
Asia-Pacific
The Asia Pacific Bromine market witnessed strong market sentiments with tight supplies during the first quarter of 2021, owning to the limited inventories of Bromine as several Bromine manufacturers halted their production during the first half of the quarter as the inventories level were piled up amid the reluctant offtakes and Chinese lunar new year holidays in the February. Demand was healthy from the downstream flame retardants and intermediates; however, the offtakes surged from the pharmaceutical sector by the quarter ending due to the resurgence of COVID in India. Prices in the FOB Shanghai hiked by 16.8% on y-o-y averaging at USD 5620 per tonne in Quarter ending.
Europe
Supplies in the European market remained balanced to tight throughout the Q1 of 2021, owning to the reduced throughput in the regional manufacturing facilities. Deliveries to Antwerp were disrupted amid the extreme cold weather in the Northwestern hemisphere and the decline in shipments from the USA. Demand surged as the offtakes improved from the downstream pharmaceutical and chemical manufacturing industries.
For the Quarter Ending December 2020
North America
Bromine demand in North America remained well support in the last quarter of 2020. Demand outlook seemed resilient for the larger part of Q4 as offtakes improved in tandem with pull in demand from the chemical industries. Regional traders were heard actively restocking for the early 2021 with rising optimism post the roll-out of coronavirus vaccines. The market is assessed to be showing an uptrend in price compared to the last quarter with the positive sentiments in the Bromine-derivatives market.
Asia
The key highlights of the Asian Bromine market were limited availability and demand which exceeded the Q3 levels. Bromine prices are set were stabilized during the quarter due to levelling up of crude oil prices. Sellers were heard stockpiling inventory levels amidst anticipations of hike in price in the upcoming quarter. The supply side is estimated to be on tighter side for higher demand from the downstream industries such as dyes, chemical intermediates, and pharmaceutical industries. Major producers in Asia were revamping production to stabilize the demand. One of the major plants in Japan proposed to expand its capacity to cater to long-term demand growth of region and support the domestic supply.
Europe
The largest application of Bromine in the region was from flame retardants. Traders and sellers in the region were heard selling the product at a reduced price to spot buyers, to recover the pandemic-induced losses in Q2. Contract buyers offered reduced rates for the year-end offers. With environment regulation in Europe impending a permanent ban on the use of flame retardants in electronic items by March 2021, the market is likely to lose its segmental share by a significant percentage by the end of Q1 2021. Industrial grade Bromine prices are likely to fall by a huge amount in Q1 2021, compared to this quarter.
