Hydrobromic Acid prices in China are constant due to a Demand-Supply balance

As the country reopens after the Lunar New Year celebrations, the factories and enterprises across China are gradually resuming their operations to make 2022 somewhat productive. This year began with a lot of uncertainties in terms of global trade, given the unprecedented outbreak of the Omicron variant of the coronavirus and geopolitical tensions. Some Chinese industry players are still worried that the growth of new clients and orders from offshore markets can be hampered by the pandemic, which could result in a significant slowdown in the export market, despite market resumption.

According to the chief economist, "As coronavirus gradually wanes in the world, global demand might shift from commodities to services, which will exert a negative impact on China's export growth this year." He further added that the improvement of the pandemic would ease supply chain tightness and cause products stockpiled at ports to flow into selling channels, which will hurt global exports to some extent as it will take some time to digest the inventory. However, in China, due to enough availability of inventories, traders stockpiled their shelves ahead of the festive holidays, due to which the domestic market has enough supplies for the time being.

As Per ChemAnalyst, the prices of Hydrobromic Acid are in a constant trajectory in the Chinese domestic market and are likely to remain stable in the upcoming weeks. The stabilized supply and demand in the Chinese market after the festive season is resulting in the stable prices of Hydrobromic acid. On the demand front, offtakes from the pharmaceutical and agrochemical industries have remained strong since the beginning of 2022. The global economic recovery will extend the support to exports however the imports will be simultaneously stable as a result of China's pent-up investments. Chinese manufacturers are quite uncertain about this year's economic growth owing to challenges including the Omicron outbreak, skyrocketing container charges, disrupted supply, and others with being optimistic in overcoming it.