European Sodium Bromide Market Resilient as Demand Strengthens; Prices Hold Steady

Barcelona (Spain): The European Sodium Bromide market showed stability in May 2024, with prices noting an increase in Spain's domestic market due to rising demand from consumers. Inquiries from downstream industries in Germany, a key importer of Sodium Bromide, have also increased due to limited availability in the consumer market, exerting upward pressure on demand. Higher input costs stemming from increased raw material prices have prompted manufacturers, including Sodium Bromide producers, to raise their prices.

European Sodium Bromide market has shown slight improvement this month amid restocking activities ahead of the summer vacation season. However, locally produced goods face challenges from cheaper imports, particularly from Asian markets, leading to heightened competition. The chemicals confidence indicator has improved marginally but remains at a low level. High raw material prices and sluggish order volumes continue to weigh on businesses. Consequently, companies are forced to cut costs by shutting down production plants, discontinuing certain business segments, or shifting investments abroad. In May 2024, assessed prices for Sodium Bromide FD Barcelona were USD 1,600/MT.

Additionally, Spain's PMI rose in May 2024 compared to the previous month, indicating growth in the country's private sector and strong performance. New orders have increased over the past two quarters, signaling optimism in the domestic chemical industry, which is expected to support the Sodium Bromide market positively. Freight charges continued to rise sharply throughout the month, driven by early-month General Rate Increases (GRIs). Unexpected demand spikes and capacity constraints due to disruptions in the Red Sea have led to congestion in regions like the West Mediterranean and South Asia. Despite the introduction of new ships, delays in arrivals and skipped port calls persist as shipping companies strive to maintain schedules at key hubs. Growing demand, limited capacity, and delays have pushed ocean freight rates higher from their elevated levels in April. A sudden increase in demand from Asia in May, driven by restocking in Europe and the early peak season on the transpacific route, has exacerbated congestion issues, resulting in shortages of empty containers, rolled-over bookings, and higher rates.

Demand for Sodium Bromide from the downstream oil and gas drilling industry improved in domestic and other European markets ahead of summer restocking activities. Purchases were driven by immediate needs, while regional inventories remained low.

According to the ChemAnalyst database, Sodium Bromide prices are expected to remain stable for the next few weeks due to improved market fundamentals in Europe and firm demand from Asian and Middle Eastern markets. The supply dynamics are expected to remain firm keeping a check on the Sodium Bromide prices.