For the Quarter Ending September 2023
The US Hydrobromic acid market showcased a mixed pricing trend in the third quarter of 2023. The prices fluctuated throughout the period due to weak demand in the downstream solvents manufacturing and other end-use industries, imports of low-priced goods, and high material availability in the regional markets. In the first month, consumer inquiries from both domestic and international markets declined, resulting in bearish market sentiments in the area. In terms of production, the manufacturing costs also fluctuated throughout this period as the prices of upstream Bromine oscillated. On the supply side, product imports slowed down due to adequate material availability in the region. In the second month, the prices were overall stable as no significant changes in the market outlook were observed. Additionally, high-interest rates, high inflation, and slow demand conditions across the globe also impacted the market outlook of Hydrobromic acid in the USA. On the other hand, the imports of cheaper goods also led to low prices of products.
In the third quarter of 2023, the Hydrobromic acid market in APAC demonstrated mixed sentiments. In the first month, the prices declined slightly in the Chinese market due to poor demand from the solvent manufacturing and other end-use industries. However, from the last week of July onwards, the prices rode an upward trajectory throughout August. Come August, with the approach of the monsoon season, the production of seawater Bromine brine reduced, resulting in a decline in the product's availability in the domestic market, and as a result, the manufacturing costs increased. Inquiries from downstream businesses were found to be stable. The market transactions were average, and the trading mood was light, whilst product purchases were mostly based on demand. In September, the prices of Hydrobromic acid increased further in China's domestic market due to a further development in the product's production costs. However, on the demand side, the downstream solvent manufacturing and other end-use industries provided positive support, and increased purchases of the product were made. As of September 2023, the prices of Hydrobromic acid were assessed at USD 2520 per tonne.
In the third quarter of 2023, the market sentiments for Hydrobromic acid observed a bearish outlook and the prices declined month-on-month. Sluggish demand, high inventories, and low production costs were a few of the factors that supported the price decrease in Q3. Furthermore, due to low-cost support from the upstream Bromine market, the manufacturing costs also dwindled. Throughout this period, the price fell by a significant margin due to lower demand from the downstream solvent manufacturing and other end-use industries. The product's stockpiles were found to be substantial, but with decreasing customer demand, the overall pricing trend turned unfavorable. Domestic manufacturing businesses maintained regular outputs and sufficient material availability in terms of production. Moreover, amid the poor performance of China's economic recovery momentum, the demand inquiries from the downstream solvent manufacturing and other end-use industries were low, and consequently, the European Hydrobromic acid manufacturers continuously lowered their product prices. In this period, no major port congestion or supply-related issues were observed.
For the Quarter Ending June 2023
In Q2 2023, the US Hydrobromic Acid market experienced a bearish trend, marked by a notable decline in prices and subdued market conditions. The prices of Hydrobromic Acid witnessed a significant decrease during the quarter, largely influenced by a sharp decline in feedstock Bromine prices. This decline in feedstock costs resulted in weak cost support for Hydrobromic Acid production in the US market. Moreover, demand from downstream industries remained low to moderate, further contributing to the bearish sentiment. The dye and pigments industry, which is a key consumer of Hydrobromic Acid, witnessed stability in demand, but new queries were limited. Additionally, the metal industry's demand remained stagnant, adding to the overall subdued market conditions. However, the market fundamentals strengthened towards the end of the quarter as the construction industry improved consumption rates, as highlighted by the improving housing sales and declining inventories. After the conclusion of the second quarter of 2023, Hydrobromic Acid prices in the US for reagent grade were assessed at USD 23400 per MT on an FOB basis.
In Q2 2023, the Chinese Hydrobromic Acid market witnessed a bearish trend, with prices experiencing a significant decline. The decrease in prices was mainly attributed to a sharp drop in feedstock Bromine prices and stagnant demand from downstream industries. Supply in the market remained moderate, with inventories at reasonable levels and feedstock Bromine prices playing a crucial role in determining the overall cost of production. The demand for Hydrobromic Acid was classified as low to moderate, with stability observed in the downstream dye and pigments industry, although new queries remained limited. However, the metal industry's demand was stagnant, contributing to the overall subdued demand scenario. The market sentiment was influenced by the normalization of global crude oil and coal prices, reducing production costs for Hydrobromic Acid. While the logistics industry in India experienced a decline, it had a limited impact on the Chinese market. After the conclusion of Q2 2023, Hydrobromic Acid prices in China were assessed at USD 2590 per MT on a FOB basis for the technical grade.
In Q2 2023, the European Hydrobromic Acid market experienced a bearish phase characterized by a decline in prices and challenging market conditions. Prices for Hydrobromic Acid witnessed a significant decrease during the quarter, impacted by several factors. The feedstock Bromine prices experienced a sharp decline, resulting in weak cost support for Hydrobromic Acid production. Additionally, the demand from downstream industries remained stagnant, further contributing to the downward pressure on prices. The overall market situation was bearish, with moderate supply levels and inventories in the region. The logistics and shipping industry in Europe also faced a slowdown, which impacted freight costs and added to the market's downward pressure. The subdued demand was particularly evident in the dye and pigments industry, where new queries were limited. Moreover, the stagnant demand from the metal industry added to the overall lackluster performance. After the conclusion of June 2023, hydrobromic acid prices in Europe were assessed at USD 21500 per MT on FD basis for reagent grade.
Decrease in the cost of Hydrobromic Acid production rate, which, according to quotes from traders, has resulted in an overstock of the product in the USA market. The market value of the product was impacted by the sharp decline in feedstock costs for bromine and sulfur in Hydrobromic Acid. A greater supply on the local market as a result of increased production resulted in lower pricing as a result of manufacturer competitiveness over market prices. Decrease in product demand brought on by dwindling market emotions and increased use of the raw materials used to make the product.
The market value of Hydrobromic Acid depleted in the Asian market with costs at USD 3765/ton, 48% FOB Shanghai. The demand for Hydrobromic Acid decreased while the supply remained constant in the regional market, and the prices were likely to come down. The prices of raw materials, Bromine and Phosphorus, decreased, which led to a reduction in the cost of producing Hydrobromic Acid, which eventually brought down its market price. The demand for the product from PTA/ PET industries is much bleak, dominated by weak operations and falling production costs. The shipment of the product was smooth enough and resulted in abundant availability of the product in the region. The demand for Inorganic Bromides was also low, impacting the market sentiments.
The prices of Hydrobromic Acid were de-escalated in a stable trend within the European market during the first quarter of 2023. Prices were projected to decrease since there was a decline in demand for hydrobromic acid in the local market but no change in supply. Reduced pricing for the raw ingredients bromine and phosphorus resulted in lower production costs for hydrobromic acid, which finally resulted in lower market prices. Market emotions were influenced by the demand for Hydrobromic Acid from downstream inorganic bromides and PTA/PET producers in the area.