The Outlook for the Bromine Market in China Remains Bleak Due to Low Demand
- 21-Mar-2023 4:21 PM
- Journalist: S. Jayavikraman
In China, Bromine prices remained relatively low, changing operating rates in the intermediate and downstream flame-retardant sectors. The demand outlook was muted, and the Bromine companies' shipments were consistently slow. The industry was optimistic, and Bromine production was adequate. The domestic producers of downstream flame retardants and Bromine intended to stabilize the prices in the Chinese domestic market. The freight charges across Asia's major trade routes have been relatively low, and an overcapacity situation of containers has been observed across Chinese ports like Qingdao and Shanghai. Moreover, the supply of Bromine was sufficient in the domestic market, but the demand prospect subsided, and no positive support was registered.
Moreover, besides a weaker outlook for domestic demand and constant production outputs from the manufacturers, the price realization for Bromine in India remained stable. The Asia Pacific region's broader market forecast for the commodity has been assessed to be stable, and an improvement in the supply-demand situation is anticipated soon, owing to a rise in consumer demand in the region.
As per ChemAnalyst, "In the context of the sluggish demand and limited buying activity, Bromine price realizations in China are anticipated to stay subdued in the upcoming weeks. According to market trends, prices decreased during the first quarter of 2023, but demand for the product generally remained muted. However, a significant increase in inquiries from various importing nations in the local market may be anticipated during paced market activities in China. With the surge in COVID cases at the end of 2022, and strict restrictions, the market dynamics were stagnant in Q4 of 2022, and the first three months of 2023 saw a steady decline in Bromine prices. However, given the ongoing uncertainties in the industry, it is anticipated that the possibility of a rise in demand from the flame-retardant segment will provide much-needed optimism."
