Hydrobromic Acid Prices Surging due to Rise of Upstream Bromine Values in India
- 15-Jun-2022 5:35 PM
- Journalist: Jai Sen
The prices of Hydrobromic Acid have surged in the Indian market with prices hovering around INR 261555/ton Hydrobromic Acid (48%) Ex-Mumbai with a weekly escalation of 2.6% as per recorded by the Chem Analyst pricing team on June 3. Increasing prices of upstream feedstock Sulphur and Bromine with an increase in demand from the importing countries of Sulphur like Netherlands, Russia, USA, Thailand, and Indonesia and surge in prices from the exporting countries of Bromine like Israel and Jordan are supporting the uptrend of prices.
Escalating demand from downstream Pharmaceutical and Agricultural sectors as it's a strong aqueous acid used as a catalyst in the production of PTA/PET, as an electrolyte for energy storage, and as a hydrobromination agent in organic synthesis. This led to a decrease in inventories and fewer products to be stockpiled with the traders and suppliers.
Israel Chemicals VP Industrial Products Industrial Solutions Ran Oren said, "Israel Chemicals Industrial Products' Bromine business has come under margin pressures over the past few years. We have implemented these price increases to maintain our high level of customer service and ensure Israel Chemicals Industrial Products' continued investment in its business. In addition, Israel Chemicals Industrial Products recently announced restructuring plans to reduce our overall costs and improve our competitive position."
While upstream feedstock Bromine is readily available in the Indian market, excessive cost pressure has made it difficult for niche buyers to procure cargoes. As Bromine prices rise, output increases are less than expected, imported Bromine is insufficient, and the downstream flame retardant and intermediate industries can support Bromine soon. In terms of raw materials, the domestic Sulphur price also rose.
The domestic Sulphur supply is tight. With the high support of the port price, the domestic refinery quotation is substantial. The short-term Sulphur market is mainly on the side-lines.
Enterprises do not face inventory pressure, and output is lower than expected. Hydrobromic Acid enterprises have more prices, and the support of the Hydrobromic Acid downstream Agrochemicals and pharmaceuticals industry is good. It is comprehensively expected that the short-term HBr prices will run better, depending on the downstream market demand.