For the Quarter Ending December 2024
North America
The hydrobromic acid market in North America during Q4 2024 experienced mixed price dynamics, shaped by fluctuations in its upstream bromine market and demand uncertainties in downstream sectors.
The quarter began with declining hydrobromic acid prices, reflecting weaker consumer demand from pharmaceutical and agrochemical sectors. The geopolitical instability caused by the Israel-Palestine conflict disrupted bromine imports, particularly from Israel, limiting upstream supply and creating initial pressure on hydrobromic acid production costs. The pharmaceutical sector faced procurement challenges, and the agrochemical market was affected by seasonal shifts, limiting the impact of end-user purchases. By mid-quarter, as production constraints in the Middle East persisted, the resultant supply shortages drove a moderate rebound in bromine prices.
However, hydrobromic acid producers in North America struggled to pass on these costs due to abundant domestic inventories and subdued demand. Toward the end of the quarter, improved import volumes and reduced shipping costs facilitated cheaper bromine availability, slightly alleviating upstream cost pressures. Despite steady industrial activity in flame retardants and water treatment applications, hydrobromic acid prices saw only marginal improvement in December, reflecting a market characterized by high supply and restrained downstream consumption.
APAC
In Q4 2024, the hydrobromic acid market in the APAC region exhibited a bearish trend, primarily driven by a combination of weak downstream demand and high inventory levels. Prices declined steadily throughout the quarter, with notable decreases in October, November, and December. In October, reduced consumer demand in China’s solvent manufacturing and pharmaceutical sectors led to a price drop. The pharmaceutical industry faced headwinds, including anti-corruption measures and weakened export growth to the EU and US, further dampening demand. The agrochemical sector, while maintaining steady seasonal demand, could not offset the oversupply stemming from elevated inventories. By November, prices dropped due to high stock levels and subdued post-holiday procurement. Rising production costs for upstream bromine, coupled with adverse weather conditions, squeezed profit margins for domestic producers. The year-end saw intensified destocking activities, further pressuring prices as manufacturers sought to optimize inventory levels. In December, the bearish sentiment continued with a 2.4% price drop. Elevated inventory levels reduced downstream activity, and limited recovery in trading momentum from key sectors contributed to the decline. While demand for hydrobromic acid in APIs and pesticide formulations remained stable, the modest volume of transactions and oversupply kept the market under pressure.
Europe
The European hydrobromic acid market during Q4 2024 faced downward pricing pressure, primarily influenced by weakening demand and upstream bromine market dynamics. Early in the quarter, the upstream bromine market in Europe exhibited moderate stability, supported by consistent demand from the flame retardant and drilling fluid sectors. However, hydrobromic acid demand remained subdued, with pharmaceutical and agrochemical sectors reporting limited purchasing activity amid economic uncertainties. The agrochemical sector, a significant consumer of hydrobromic acid, showed slower growth due to seasonally low pesticide application and reduced agricultural activity during the winter months. Meanwhile, the pharmaceutical industry's focus on cost management and inventory optimization curtailed additional procurement. By mid-quarter, declining bromine imports from the Middle East, driven by geopolitical unrest, created upstream supply constraints. However, this did not translate into significant hydrobromic acid price increases due to the region's already elevated inventory levels. Additionally, softening freight rates within Europe supported stable bromine supply, limiting cost escalation for hydrobromic acid manufacturers. In December, as year-end inventory clearance intensified across the chemical supply chain, prices for hydrobromic acid faced additional pressure.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American hydrobromic acid market experienced a sharp decline in prices, with the most notable impact observed in the USA. Multiple factors contributed to hydrobromic acid price drop, including reduced demand from downstream industries such as flame retardants and chemical intermediates, both domestically and internationally, due to sufficient material availability in the consumer markets.
Additionally, decreased consumer spending in the USA further dampened hydrobromic acid consumption. The ongoing conflict in the Middle East also disrupted imports, adding to the pressures on market dynamics. Comparing Q3 2024 to the same period last year, prices dropped by significant margins, reflecting difficult market conditions in the North America region.
Furthermore, quarter-on-quarter prices also decreased, with a consistent downward trend throughout the quarter. The latter half of the quarter continued to follow the broader price decline, ultimately concluding at subdued levels, signaling a persistently bearish pricing environment that reflects ongoing challenges such as reduced consumer demand and increased competition in the market landscape.
APAC
In Q3 2024, the Hydrobromic Acid market in the APAC region experienced a significant decline in prices, with China showing the most substantial price changes. Factors influencing this trend include weak consumer demand, oversupply issues, and reduced support from upstream markets like Bromine. High inventory levels, sluggish consumption rates, and challenges in the downstream pharmaceutical sector have contributed to the downward price trajectory. The overall trend in the region has been bearish, with prices falling by 18% compared to the same quarter last year. Furthermore, there was a 7% decrease from the previous quarter in 2024, indicating a continuous downward trend. The price comparison between the first and second half of the quarter revealed a 3% decrease, highlighting the sustained price decline. The quarter-ending price of USD 1940/MT of Hydrobromic Acid 48% FOB- Shanghai in China signifies the prevailing negative sentiment, reflecting a pricing environment that has been consistently decreasing throughout Q3 2024 due to subdued demand and oversupply pressures in the market.
Europe
In Q3 2024, the hydrobromic acid market in the Europe region experienced a downward trend in prices, influenced by several key factors. A notable decrease in demand from downstream sectors, particularly in the production of flame retardants and specialty chemicals, contributed to an oversupply situation, exerting downward pressure on hydrobromic acid prices. Increased production rates from major manufacturers, combined with ample material availability, further exacerbated the pricing challenges. Additionally, ongoing geopolitical tensions and supply disruptions in the region impacted market dynamics, creating further uncertainty. Specifically, in the Western European market, hydrobromic acid prices saw significant fluctuations throughout the quarter. The overall pricing trend remained negative, reflecting a substantial decrease compared to previous quarters, as well as the previous year. The market ended the quarter with a notable decline in prices, underscoring the prevailing bearish sentiment driven by reduced demand and competitive supply conditions. The closing price of hydrobromic acid in the region highlighted the challenges faced by producers amidst ongoing market volatility.
For the Quarter Ending June 2024
North America
In Q1 2024, the US Hydrobromic Acid market maintained a mixed trend. Subdued demand from downstream sectors such as solvents and chemical manufacturing, combined with an oversupply and inventory destocking by consumers, led to reduced production rates by domestic manufacturers. The slow influx of new orders from international markets further affected the market. During the first month, the support from the upstream Bromine market dropped due to minor price adjustments by sellers, despite stable demand from flame retardant and intermediate industries. Economic improvements and increased consumer spending bolstered market fundamentals, but imported supplies were constrained by ongoing Middle East tensions.
Prices stabilized towards the end of the quarter but remained largely unchanged, with minimal variation in offered quotations. Although the US experienced significant price fluctuations, market sentiment was relatively stable, influenced by trends in the upstream Bromine market. Israel's weakened exports impacted the market, though a leading US bromine manufacturer ended the fiscal year positively, with strong prospects for growth, particularly from projects in Arkansas. However, geopolitical tensions, including recent attacks and disruptions in the Strait of Hormuz, have affected global trade routes and container shipping.
Despite the recession, inflation, and geopolitical uncertainties, consumer confidence in the US grew in February and March, suggesting positive expectations for future business conditions. Overall, the North American Hydrobromic Acid market faced challenges like weak demand and bearish sentiment, reflected in a notable price decrease compared to the previous year. Overall, while demand remains steady, logistical issues and rising freight rates have added strain to the market.
APAC
In Q2 2024, the APAC region witnessed a sustained decline in Hydrobromic Acid prices, driven by several significant factors. During this quarter, the market for Hydrobromic Acid was heavily influenced by a persistent oversupply condition and weak consumer demand from international markets. The downstream industries, particularly solvent manufacturing, and the pharmaceutical sector, faced sluggish consumption, exacerbated by reduced industrial activities and increased production rates leading to high inventory levels. Additionally, steady ocean freight rates in the early part of the quarter, despite rising mid-month peak season surcharges, contributed to a complex pricing environment. Focusing on China, which experienced the most pronounced price changes, the overall trend was marked by a bearish sentiment. Seasonal factors, such as reduced industrial activity and economic slowdowns, compounded by ongoing supply chain disruptions, led to significant price drops. The price of Hydrobromic Acid in China declined by 20% compared to the same quarter last year, reflecting substantial market contraction. From the previous quarter in 2024, prices fell by 9%, indicating continued downward pressure. A further 4% price decline was observed between the first and second halves of Q2, underscoring the sustained negative trend. The latest quarter-ending price for Hydrobromic Acid 48% FOB Shanghai was USD 2050/MT, encapsulating the consistent decline throughout the quarter. The pricing environment has been decidedly negative, influenced by oversupply, weak demand, and economic uncertainties, signaling a challenging market landscape for Hydrobromic Acid in China and the broader APAC region.
Europe
In Q1 2024, the European Hydrobromic Acid market experienced volatility due to a combination of supply and demand factors. On the supply side, decreased prices of upstream raw materials, particularly Bromine, reduced cost support. Supply chain disruptions were exacerbated by high freight charges stemming from geopolitical tensions in the Middle East, affecting key shipping routes such as the Red Sea and the Suez Canal. Conflicts, including the Israel-Hamas tension and actions by Yemen’s Houthi forces, contributed to these challenges. Demand remained weak, with downstream industries showing low consumption levels domestically and internationally due to high existing inventories and reduced new order volumes. In the upstream Bromine market, Israel's reduced exports have influenced the market, but a major US bromine manufacturer concluded the fiscal year on a positive note, buoyed by promising growth prospects from its Arkansas projects. Despite this, geopolitical tensions, such as recent attacks and disruptions in the Strait of Hormuz, have disrupted global trade routes and container shipping. Germany’s economic situation, Europe’s largest economy, showed limited recovery, with high financing costs and sluggish domestic demand dampening business and consumer confidence. This was reflected in reduced market transactions and trading activity, with only marginal improvements reported in industrial production, construction, and foreign trade.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the US Hydrobromic acid market continued to display a bearish pricing trend. Demand from downstream industries like solvents and chemical manufacturing remained subdued, primarily due to oversupply and consumers destocking inventories. Consequently, domestic manufacturers scaled back production rates. The slow influx of new orders from overseas markets further impacted the market dynamics.
While the prices of Hydrobromic acid stabilized towards the end of the quarter, the overall market outlook remained unchanged, with offered quotations showing little variation. The USA experienced significant price fluctuations, yet market sentiments largely remained stable. Throughout Q1 2024, Hydrobromic acid prices were heavily influenced by the upstream Bromine market, following a similar trend in the region.
Despite concerns about potential recession, inflation, and geopolitical uncertainties, consumer confidence in the US saw growth in both February and March, indicating positive expectations for future business conditions. Overall, the North American Hydrobromic acid market encountered challenges such as weak demand, bearish sentiments, and uncertain business conditions. Prices reflected these challenges, experiencing a notable decrease compared to the previous year.
APAC
The pricing of Hydrobromic Acid in the APAC region during Q1 2024 has been influenced by several key factors including ample availability of inventories. Overall, the market has experienced a stable pricing environment with some slight fluctuations. In general, the demand from downstream industries such as petroleum refining, solvents, and chemical manufacturing has remained moderate to firm. This steady demand has supported the pricing of Hydrobromic Acid in the region.
Additionally, the availability of sufficient material in the domestic market has contributed to the stability of prices. The cost support from upstream bromine has remained stable, with no significant changes observed. When specifically looking at China, the pricing trends have shown a slight increase during the quarter. This can be attributed to increased manufacturing costs due to higher prices of upstream bromine.
However, the demand from downstream industries in China has remained moderate, leading to average market transactions. Overall, the pricing environment for Hydrobromic Acid in Q1 2024 has been stable in the APAC region. The latest quarter-ending price recorded in China was USD 2240/MT for Hydrobromic Acid 48% FOB- Shanghai.
Europe
In the first quarter of 2024, the Hydrobromic acid market in Europe experienced fluctuations due to a complex interplay of factors affecting both supply and demand. On the supply side, production felt the impact of declining costs of upstream raw materials like Bromine, which saw decreased price support during the quarter. The supply chain also faced challenges due to elevated freight charges resulting from ongoing geopolitical tensions in the Middle East, particularly affecting vital shipping routes such as the Red Sea and the Suez Canal, thereby influencing the overall costs of Hydrobromic acid.
These disruptions in the supply chain were notably pronounced due to conflicts such as the Israel-Hamas tension and actions by Yemen's Houthi forces. Meanwhile, demand remained subdued; downstream industries displayed weak consumption patterns both domestically and internationally. This was partly attributed to high existing inventories among consumers, which curtailed new order volumes.
Additionally, the economic climate in Germany, Europe's largest economy, did not demonstrate signs of a robust recovery, with elevated financing costs and sluggish domestic demand continuing to dampen consumer and business confidence. These factors were evident in limited market transactions and reduced trading activity, with the German economy ministry reporting only marginal improvements in industrial production, construction, and foreign trade.
