North America Bromine Prices Remain Nearly Stable on Slow Pick-Up in Market Activities
- 21-Jan-2022 2:55 PM
- Journalist: Nicholas Seifield
Realizations of Bromine in the US have been fluctuating in a stable to firm range throughout December 2021 following the bearish offtakes from downstream segments. In late-December inquiries for Bromine from agrochemicals and flame retardant segments turned lukewarm due to seasonal drag in the purchases.
Offtakes for Bromine were expected to pick up in January under the likelihood of an appreciable pickup in market activities. However, as the buying momentum in January has been lower than expected, Bromine prices have only recovered marginally. Demand for Bromine from the flame retardant segment has shown notable recovery however it has been unable to counterbalance the dullness in its demand from other segments. Hence, Bromine prices in USA have gain by just 0.5% in the week ending 21st January.
Bromine prices are likely to remain firm as freight rates are expected to observe a consistent yet gradual rise by mid-January, which is likely to be reflected upon the prices of various traded commodities. On the other hand, as brine reserves in the US are likely to be under highly desired spectrum due to rising Lithium demand across the globe, this can likely put forth an upward pressure upon Bromine prices in the coming months.
Apart from the consignment rates, demand is expected to remain like the previous month. Hence, Bromine prices are expected remain firm with negligible fluctuations in February. As per ChemAnalyst, “Bromine may witness an increase in demand in March as the end user market usually gathers pace in this period. Likewise, there is also likely to be an increase in trading activities as market participants report increased queries in the end of March every year.”