For the Quarter Ending March 2023
North America
The bromine market in the USA observed a bearish pricing trend in the first quarter of 2023. The offered quotations remained stable in the first month of Q1, with a slight drop in the last week amid moderate demand and sufficient availability of the product in the region to cater to the downstream demand from fire retardant and intermediate industries. In the second month of Q1, the market prices slipped down due to a weaker demand outlook and sluggish inquiries from the consumer market. Also, the inquiries from the overseas market plummeted in this period amid inflationary pressure and uncertainties regarding economic conditions. In the last month, the market prices dropped further as the market participants were not willing to indulge in the procurement of Bromine, and slower imports of the product were registered in this period.
APAC
In the first quarter of 2023, the Bromine market observed a bearish pricing trend in the Chinese domestic market. In the first month, the market prices remained in a downward trajectory due to a drop in downstream demand from flame retardant and intermediate industries as the temperature fell in the region. In the second month of Q1, the market prices of Bromine declined further as the global demand dynamics were unstable and overseas demand was below average. Also, the production rates dropped amid sufficient availability of the product, enough to cater to the limited downstream demand. In the last month, the price slipped down due to the widening of the supply-demand gap. Also, the demand outlook was reported to be sluggish in this period. Thus, the market prices of Bromine Ex-Shanghai settled at USD 4249 per tonne at the end of Q1 2023.
Europe
The Bromine market in the European region exhibited a declining pricing trend in the first quarter of 2023. In the first month, the market prices plummeted amid imports of low-priced products as the exporting nations slashed the profit margins to avoid piled-up inventories in the market. In the second month, the offered quotations dropped further amid a weaker demand outlook as the downstream consumers in the fire retardant and intermediate sectors were reluctant to place new orders for the product. Amid uncertain market conditions and inflationary pressure, in the third month of Q1, the overall market prices in Europe plummeted, and bearish market sentiments for Bromine prevailed in the region. Also, the manufacturing PMI dropped this month due to a decline in new orders and lower input costs.
For the Quarter Ending December 2022
North America
Overall, the Bromine market in the North American region observed mixed market sentiments. The offered quotations for Bromine witnessed a slight jump during the first half of the quarter followed by a slight plunge in the latter half. Even though the fourth quarter has been traditionally the offseason for Bromine, the market remained bullish during the first half of the quarter as the slow activities in China and the resumption of arbitrage with the European region kept the traffic of fresh inquiries inbound. However, in the latter half, the demand outlook dropped, and the European market lacked market competitiveness amidst the higher energy prices and soaring inflation. In addition, the arbitrage has dropped in the latter half amidst the hindrance over transportation activities. Therefore, the FOB Houston discussion for Bromine was assessed at USD 5736 per tonne in December 2022.
Asia Pacific
Overall the Bromine market in the Asia Pacific region has observed mixed sentiments based on subregions. The Chinese players have dropped the run rates to comply with the regulations and rules enforced by the Chinese authorities to restrict power consumption. In addition, the COVID situation in China has kept hindering arbitrage with the overseas market. In response, the Bromine market persists on a bullish trajectory, followed by a slowing down in the second half as the Bromine market entered a seasonal off-trend. As a ripple effect, the FOB Dalian average monthly discussions for Bromine peaked highest at USD 6522 per tonne in November 2022. Whereas the prominent south-east Asian markets consistently persisted on a bearish trajectory throughout the fourth quarter of 2022.
Middle-East and Africa
In the fourth quarter of 2022, the Bromine market in the Middle East and Africa region observed a mixed outlook. The first half observed a considerable uptrend in the first quarter as the demand outlook for Bromine improved after the inquiries flooded the Jordan market in October and early November 2022. However, soon after, the European players cumulatively decided to drop the run rates to sustain the netbacks. As the profit margins in some industries were negative after analyzing the current supply-demand scenario amidst the high energy cost. In addition, the seasonal off-trend for Bromine has also started resulting in a plunge in the offered quotations in the domestic market. As a ripple effect, the FOB Aqaba discussions for Bromine were assessed at USD 5444 per tonne in December 2022.
For the Quarter Ending September 2022
North America
Overall the Bromine market in the North American region has persistently witnessed a staggering upward trend in the third quarter of 2022. This development is majorly attributed to the restocking practices initiated by the downstream market participants ahead of the hurricane season to avoid disruptions across the values chain. Albemarle's aggressive midstream push in unlocking values in the Bromine division focuses on products derived from halogen. The recent results of Q2 released by Albemarle indicated that the net sales were USD 378 million, up by 46% higher than Q2 last year. In addition, the sales have also been trending up in the US domestic market, supporting the enthusiasm amongst the producers. As a ripple effect, the FOB Houston discussions for Bromine averaged USD 5720 per tonne during the September quarter.
Asia Pacific
In the third quarter of 2022, the Bromine market in the Asia Pacific region witnessed mixed sentiments based on sub-regions. The Northeast Asian market saw a bearish movement in the offered quotations, while the Southeast Asian markets witnessed a bullish trajectory. This trend was majorly comprehended by understanding the supply-demand dynamics against the netbacks drawn by the market participants that varied across countries, even in the sub-regions. The bearish trend was primarily concentrated in the Chinese markets as the economy's poor performance, rising inflation, power rationing, and uncertainty regarding COVID curbs have proportionally impacted the demand in domestic and overseas markets. Consequently, the FOB Qingdao discussions for Bromine averaged USD 7150 per tonne in September.
Middle-East and Africa
The Bromine market in the Middle-Eastern region maintained bearish sentiments during the third quarter of 2022. However, the pricing quotations have consistently fluctuated within a range. The producers have varied the operating rates at the manufacturing facilities to sustain netbacks. Whereas due to the mixed demand outlook, the market remained suppressed for most of the period. The spot European inquiries were absent, although several contract-based orders were placed for late September to October deliveries. Thus, the FOB Aqaba discussion for Bromine was assessed at USD 5487 per tonne in September 2022.
For the Quarter Ending June 2022
North America
In North America, Bromine's price outlook witnessed a stable trend throughout Quarter 2 of 2022, backed by constant offtakes amid surplus inventory availability in the North American market. Stability in the queries from China due to COVID 19 lockdown restrictions in China and high inflation pressure amid War led to upward stability in the prices for the product. Low support from the downstream demand for Bromine's costs was seen in North American countries in June. The supply-demand gap remained tight in the country throughout Quarter 2 of 2022. In Addition, Force Majeure in Primary Chlor Alkali, Olin resulted in a shortage of feedstock Sodium Bromide and Chlorine.
Asia-Pacific
Asia pacific prices of Bromine witnessed a downward trend throughout Quarter 2 of 2022 due to the low demand from the downstream flame retardant industry amidst prohibition of overseas supplies as a consequence of covid 19 lockdown restrictions in China. Enterprises were compelled to reduce the Bromine prices to obtain stable offtakes in the local market of China amid bearish buying sentiments amongst local buyers. Moreover, the currency depreciation against the US dollar caused downward pressure on the prices throughout the 2nd Quarter of 2022.
Europe
European market of Bromine witnessed stability upward with an overall inclination of 1% in Quarter 2 of 2022 due to high inflation rate and strong support by the demand fundamentals from the downstream flame retardants industry in April. Meanwhile, traders and sellers in the region were heard offering the product at a reduced price to spot buyers to recover from the supply disruptions in the region. Escalation in Russia-Ukraine geopolitical tension led to depreciation of the Europe currency (Euro) against the US dollar, which ultimately impacted the price trend of Bromine in the European Region. Moreover, high energy values caused upward pressure on the input costs of Bromine, and enterprises indulged in passing the cost burden to the consumers in this Quarter.
For the Quarter Ending March 2022
North America
In North America, Bromine price outlook witnessed stability throughout Q1-2022 backed by stable offtakes amid ample material availability in the US market. Stability in the queries from China was observed in first quarter due to market closures as a result of strict Covid restrictions amidst resurgence of Covid in China. As a result of reduced demand from China, traders and manufacturers of Bromine in USA lowered the prices to maintain stable offtakes in the domestic market of USA. Demand-supply gap remained narrow in the country throughout the first quarter of 2022. Bromine price were assessed at USD 4590/MT FOB Houston during the final week of March.
Asia Pacific
Bromine prices in the Asia-Pacific region remained volatile in the first quarter of 2022. Prices of Bromine in the month of March witnessed a fall due to low demand from downstream flame retardant industry amidst prohibition on international supplies on resurgence of Covid 19 in China. Bromine prices were assessed around USD 8876/MT FOB Qingdao during the month of March. Manufacturers were compelled to reduce the prices to restrain the fall in offtakes within China. Prior to the last week of February, prices of Bromine showcased an upward trend due to low inventories levels and surged demand from downstream agrochemical and pharmaceuticals.
Europe
In Europe, Bromine witnessed stability due to consistent demand from downstream flame retardants industry in the month of January. Russia-Ukraine geopolitical tensions led to production cuts and energy crisis in the European region. Traders and sellers in the region were heard selling the product at a reduced price to spot buyers, to recover for the conflict induced losses. Manufacturers were compelled to reduce the prices in order to maintain stable offtakes in the domestic market amid inability to cater to the international demand. Bromine prices in Europe fluctuated by nearly 2% in Q1-2022.
For the Quarter Ending December 2021
North America
In North American region, Bromine prices maintained a trend like the previous quarter as rising freight and energy costs continued to exert upward pressure on the prices of non-fuel minerals. Demand from the downstream Hydrogen Bromide markets remained strong through the first two weeks of Q4. In the month of November, Bromine prices were observed to be modest as USA significantly invested in oil and gas drilling activities. A leading manufacturer in its quarterly results revealed that surging demand for Bromine derivatives from the flame retardants sector, have kept the sales volume strong in Q3 and the trend is likely to continue throughout Q4. Bromine FOB bulk prices in USA reached USD 4580 per MT in late-December.
Asia
In Asian market, market sentiments of Bromine remained mixed in Q4 2021. In October, Bromine prices rose substantially following the shortage in supply and increased downstream demand. In China, repercussions post dual energy norms, such as traffic at the Chinese ports coupled with the tightened availability of freight vessels raised the elemental Bromine quotations. This was majorly attributed to the robust trading after the holidays, which caught the spot market players off-guard. However, Bromine prices dropped steeply by late-Q4 as buyers restrained to purchase cargoes absorbing the steep rise in prices of Bromine. In India, it was heard that there is enough availability of Bromine in the market, however the excessive cost pressure has made it challenging for niche buyers to procure cargoes. Bromine China prices after reaching record high in October finally settled at USD 9730 per MT in the final week of December.
Europe
European market witnessed a significant hike in the prices of Bromine in Q4 2021 in lieu of consistent dullness in imports amidst prevalent demand from the downstream sectors. Climatic disruptions continued to stress the availability of the product at times of prominent demand. As Europe imports most of the Bromine from overseas therefore gradual ease in freight charges and increase in availability led to a marginal ease in its prices towards the end of the quarter. However, prices remained at elevated levels in comparison to the previous quarters.
For the Quarter Ending September 2021
North America
In
North American region, Bromine market outlook witnessed an uptrend during the third quarter backed by the surge in the demand for Bromine and its derivatives from downstream sectors. In US, Bromine market sentiments remained high followed by the increased production rates and improved offtakes from downstream industries in the beginning of the quarter. However, in the latter half of the quarter, several manufacturers were compelled to shut their production facilities ahead of the Ida hurricane as a part of an emergency plan. Hence, curtailed production rates and increment in the feedstock prices due to its scarcity contributed to inflate Bromine prices during this quarter.
Asia
In Asian market, Bromine prices witnessed a downward trend backed by sufficient supplies and weaker demand by the downstream sectors in the region during Q3 of 2021. In China, prices of Bromine plummeted because its downstream industries operated at low rates owing to the low buying momentum and strict environmental regulations. FOB Qingdao Bromine prices stood at USD 6650/MT in September showcasing a decline by around UDS 371/MT since July. Indian market also marked drop in the prices of Bromine throughout the quarter aided by the cheaper imports from major exporting countries which compelled the manufacturers to revise their prices to maintain competitiveness in the market. Ex Mumbai Bromine prices in September were assessed at USD 5406.51/MT showing a decline by USD 116.46/MT from the prices in July.
Europe
In Q3 2021, the European market witnessed a proliferative hike in the prices of Bromine because of lower imports and steady demand from the downstream sectors including electronics. Constrained availability sent ripples to the prices of Bromine and its derivatives throughout the quarter. As Europe imports most of the Bromine from overseas therefore extremely high freight charges and delayed shipments arrival also contributed to hike the pricing of Bromine in the region during the third quarter.
For the Quarter Ending of June 2021
North America
In North American region, the demand for Bromine and its derivatives remained well supported in the second quarter of 2021. Quarterly offtakes improved from the downstream buyers amidst strong market sentiments to replenish the inventory levels ahead of the upcoming hurricane season in the next quarter. Traders stocked up actively amid rising enquiries from the flame retardant manufacturers and improvement in the exports segment. Bromine supplies in the North American region improved as several producers ramped up run rates to mitigate the impact of winter storm Uri that disrupted operations in Q1. Amidst sharp uptick in the global Bromine rates and high operational costs, the Bromine pricing in USA observed a gradual increment with FOB Michigan June prices assessing at USD 4690 per tonne.
Asia Pacific
Bromine supplies in the Asia Pacific region were tight during the second quarter of 2021, as the regional Bromine manufacturers witnessed skyrocketing demand from the downstream Bromine derivatives sectors as the enquiries were piled up since the Lunar New Year holidays in February. One of the key Bromine manufacturers in China halted operations at its multiple facilities amidst the government regulatory restrictions. Lack of availability pushed up the Chinese Bromine offers which reached an all-time high in May. FOB Shanghai Bromine discussions in June were assessed at USD 6970 per tonne, showing an increment of 21.22 % from the prices in April.
Europe
Bromine supplies in the European market were curtailed amidst lack of imports as several Asian producers reported curtailed operations amidst stricter environmental regulations. Demand for the brominated flame retardants remained firm from the electronics sector. Traders reported high priced shipments arriving from China with consumers facing the brunt of high shipping charges and tight regional supplies. Lesser inventory levels and high operational costs were the key factors driving the global uptrend in the Bromine pricing.
For the Quarter Ending March 2021
North America
The supplies in the North American region remained limited during the first quarter of 2021, owning to the repercussions of the polar winter storm in the US Gulf region. The industrial infrastructure collapsed, and plants were forced to shut their production during the mid-February. However, restocking activities from the previous quarter under the stress ahead of winter season reduced the impact over the prices of Bromine which averaged around USD 4480 per tonne FOB Michigan. Demand witnessed a tremendous uptrend as the offtakes improved from the downstream chemicals and pharmaceutical industries.
Asia-Pacific (APAC)
The Asia Pacific Bromine market witnessed strong market sentiments with tight supplies during the first quarter of 2021, owning to the limited inventories of Bromine as several Bromine manufacturers halted their production during the first half of the quarter as the inventories level were piled up amid the reluctant offtakes and Chinese lunar new year holidays in the February. Demand was healthy from the downstream flame retardants and intermediates; however, the offtakes surged from the pharmaceutical sector by the quarter ending due to the resurgence of COVID in India. Prices in the FOB Shanghai hiked by 16.8% on y-o-y averaging at USD 5620 per tonne in Quarter ending.
Europe
Supplies in the European market remained balanced to tight throughout the Q1 of 2021, owning to the reduced throughput in the regional manufacturing facilities. Deliveries to Antwerp were disrupted amid the extreme cold weather in the Northwestern hemisphere and the decline in shipments from the USA. Demand surged as the offtakes improved from the downstream pharmaceutical and chemical manufacturing industries.
For the Quarter Ending December 2020
North America
Bromine demand in North America remained well support in the last quarter of 2020. Demand outlook seemed resilient for the larger part of Q4 as offtakes improved in tandem with pull in demand from the chemical industries. Regional traders were heard actively restocking for the early 2021 with rising optimism post the roll-out of coronavirus vaccines. The market is assessed to be showing an uptrend in price compared to the last quarter with the positive sentiments in the Bromine-derivatives market.
Asia
The key highlights of the Asian Bromine market were limited availability and demand which exceeded the Q3 levels. Bromine prices are set were stabilized during the quarter due to levelling up of crude oil prices. Sellers were heard stockpiling inventory levels amidst anticipations of hike in price in the upcoming quarter. The supply side is estimated to be on tighter side for higher demand from the downstream industries such as dyes, chemical intermediates, and pharmaceutical industries. Major producers in Asia were revamping production to stabilize the demand. One of the major plants in Japan proposed to expand its capacity to cater to long-term demand growth of region and support the domestic supply.
Europe
The largest application of Bromine in the region was from flame retardants. Traders and sellers in the region were heard selling the product at a reduced price to spot buyers, to recover the pandemic-induced losses in Q2. Contract buyers offered reduced rates for the year-end offers. With environment regulation in Europe impending a permanent ban on the use of flame retardants in electronic items by March 2021, the market is likely to lose its segmental share by a significant percentage by the end of Q1 2021. Industrial grade Bromine prices are likely to fall by a huge amount in Q1 2021, compared to this quarter.
