Resuming Trade Activities Amid Faded Inventories Lead Sodium Bromide Prices to Rise in Spain

Barcelona, Spain: Sodium Bromide prices in September continued its upward trend in Spain’s domestic market as the holidays ended in the region and the resumption of trade activities continued. The inventory levels of Sodium Bromide were low as the pre-stocked material for the August month was gradually consumed and thereby the consumers were procuring Sodium Bromide at an increased pace. The demand for Sodium Bromide from the downstream industries was noted to be improving in the domestic as well as other markets in Europe due to low inventory levels.

The supply of Sodium Bromide was low in the domestic market as the holiday season was completed and the stockpiles declined. The production rates in the Sodium Bromide manufacturing units also improved as the workforce came back to work from holidays, and the output further increased. Furthermore, container spot freight rates between Asia and Europe saw a sharp drop in September, with both Asia-North Europe and Asia-Mediterranean routes experiencing double-digit declines, further easing pressure of raw materials on chemical manufacturers in Europe including for Sodium Bromide producers. However, the main issue for carriers is declining demand. Despite the additional capacity deployed via the Cape of Good Hope to accommodate longer sailing distances on Asia-Europe routes, demand seems to have peaked, with the booking surge and rate highs of May and June now a fading memory.

According to the latest data, Spain's trade deficit narrowed to EUR 3.2 billion in July 2024, down from EUR 4.9 billion in the same period last year. Exports surged by 9.3% year-on-year to EUR 33.3 billion, driven by stronger shipments with raw materials (+27.6%); and chemical products (+12%). Meanwhile, imports increased by 3.2% to EUR 36.5 billion, with growth in chemical products (+9.4%). These figures showcase the strength of the Spanish economy.

Spain's economy is thriving and recently, the government revised its GDP growth forecast for 2024 upwards from 2.4% to 2.7%, and from 2.2% to 2.4% for 2025 as consumer and business confidence enhanced further. These growth rates are more than double the average expected for the eurozone. The strong economic performance has also bolstered public finances, with the fiscal deficit standing at just 3.6% of GDP last year.

Furthermore, Spain reported a significant drop in inflation for September, which may give the European Central Bank more room to lower interest rates in October. Economic challenges across the eurozone show a growing need for lower rates to boost investment and spending. The latest economic data has pointed out risks, and a weak inflation report could push the ECB's Governing Council to cut rates in October. In Spain, inflation fell to 1.7% from 2.4% in August, below both forecasts and the ECB's 2% target. Overall, better economic growth is poised to boost the chemical sector in Spain including that for the Sodium Bromide market.

In the latest assessment done by ChemAnalyst pricing intelligence, the prices of Sodium Bromide are anticipated to increase further in the upcoming weeks owing to improved cost pressure on Sodium Bromide producers and steady consumption in the downstream industries.