US Bromine Prices Increase as Demand Rises Although Supply Pressures Persist

Texas, USA: Towards the end of April 2024, the market prices of Bromine increased in the US domestic region as the supply pressure increased. The demand for Bromine from the downstream flame retardant and other intermediate industries for the product has remained firm. Although economic conditions improved and consumer spending increased, the ongoing conflict between Israel and Palestine resulted in low imported supplies, particularly affecting Israel's Bromine exports. Nevertheless, a prominent Bromine manufacturer in the USA ended the fiscal year 2024 on a positive note, achieving significant financial milestones and expressing optimism about prospects.

LANXESS AG, a global specialty chemicals company, faced challenges in the first quarter of 2024 but demonstrated resilience with higher sales and a positive outlook for the year ahead. Company officials acknowledged the tough comparison with the previous year's Q1 but expressed optimism regarding volume growth across various industries. The construction sector, especially in China, remains a key driver of Bromine demand. Optimism surrounds the anticipated recovery in consumer market segments in the coming quarters. Higher demand from agrochemical and construction industry clients is anticipated. Pricing dynamics in the Bromine market are being closely monitored, with derivative prices not always mirroring spot price movements. Overall, trading activities increased, and market transactions gained momentum in the Bromine market.

New orders returned to contraction territory driven by reduced demand in many downstream industries. The domestic inventories of the product were moderate as the imported Bromine quantity has been lagging. In general, the ocean container market has established a new pattern to circumvent the Red Sea due to ongoing Houthi attacks, persisting into this week. While the substantial backlogs, congestion, and equipment shortages witnessed during the initial weeks of the crisis have subsided, adaptations have led to some moderate yet persistent disruptions.

The demand outlook for Bromine has improved over the last few weeks, and increased consumer inquiries from the downstream flame retardant and other intermediate industries have been registered in the domestic market. However, the inflow of new orders from the overseas consumer market was reported to be slowing down as consumers had sufficient material availability. Additionally, in the downstream construction sector, spending for March 2024 showed a slight decrease of 0.2% from the revised February estimate of USD 2,087.8 billion. Compared to March 2023, this figure represents an increase of 9.6%. For the first three months of the year, construction spending reached USD 461.0 billion, marking a 10.6% increase from the same period in 2023 when it was USD 416.7 billion. These figures indicate that the condition has improved and is continuously improving, albeit at a slower pace.

According to the ChemAnalyst database, the prices of Bromine are anticipated to demonstrate further incline in the upcoming weeks owing to increased demand in the overseas markets and further ease in the geopolitical tensions.