For the Quarter Ending December 2023
In the fourth quarter of 2023, the Sodium Bromide market in the USA showcased mixed sentiments due to various factors. In the first month, the prices declined due to a poor demand outlook and a reduction in offered quotations by the major exporting nations Israel, China, and Jordan. Additionally, the consumption rates remained on the lower edge due to surplus inventories in the domestic market.
In November, heightened consumer spending and enhanced market activities contributed to an overall improvement in economic conditions. Nevertheless, downstream industries encountered only modest demand. Despite apprehensions regarding a possible economic downturn, inflation, and geopolitical uncertainties, consumer confidence in the United States rose during both November and December. This uptick in confidence reflects a positive outlook on future business conditions.
Moreover, destocking practices were prevalent this month, driven by consumer reluctance to maintain surplus inventories. Concurrently, year-end holidays traditionally led to reduced industrial activity. As a result, manufacturing firms chose to either decelerate or temporarily halt operations, intensifying the drop in demand.
In the fourth quarter of 2023, the Sodium Bromide market in the APAC region experienced a mixed performance. The market was influenced by several factors that impacted prices and market dynamics. In the initial period, the market witnessed a moderate supply chain, with imports of the product being steady. Additionally, the demand for Sodium Bromide was moderate, with inquiries from various industries such as water treatment and pharmaceuticals. However, the overall demand was not as robust as expected, leading to a slightly bearish market trend. Additionally, the presence of sufficient inventories in the region further dampened the demand for Sodium Bromide. Apart from this, the market was affected by fluctuations in currency exchange rates, with the Indian Rupee depreciating against the US Dollar. This depreciation had an impact on the pricing of Sodium Bromide in India, which experienced a slight decrease in prices during this quarter. In this period, no plant shutdowns were reported during this period. In India, the prices of Sodium Bromide in the fourth quarter of 2023 witnessed a slight decrease compared to the previous quarter. The current quarter's price stands at USD 1705/MT CFR JNPT Mumbai. This represents a decrease from the previous quarter, indicating a bearish market trend for Sodium Bromide in India during this period.
In the fourth quarter of 2023, the Sodium Bromide market in Europe experienced a challenging period. In the first month, there was a decrease in demand from the downstream water treatment and oil drilling sectors, leading to sluggish inquiries and lower consumption of Sodium Bromide. Additionally, the production costs of Sodium Bromide increased due to fluctuating natural gas prices and an uptick in the upstream Hydrobromic acid market. These higher costs put pressure on the pricing of Sodium Bromide. In this period, the overall market sentiment remained bearish, with limited inventories and low manufacturing rates, indicating a lack of confidence in the market. In the Netherlands, one of the major countries in the European Sodium Bromide market, the pricing trend reflected the challenges faced in the industry. The price of Sodium Bromide in the country declined by 6% compared to the previous quarter of 2023. Additionally, there was a 5% decrease in price between the first and second halves of the quarter. This decline can be attributed to the weak demand, increased production costs, and low market sentiment experienced in the region. The quarter ended with a price of USD 1580/MT of Sodium Bromide FD Rotterdam in the Netherlands.
For the Quarter Ending September 2023
In Q3 2023, the Sodium Bromide market in the USA showcased mixed sentiments due to various factors. In the initial weeks, the prices declined due to a poor demand outlook and a reduction in offered quotations by the major exporting nations Israel and Jordan. The manufacturing PMI rose to 49.0 in July from the previous month signaling the softest decline in operating conditions in the manufacturing sector, new orders fell once again as local and overseas demand remained subdued. August saw a further plunge in prices as higher interest rates and ongoing summer vacations in most of the European nations weigher upon the demand outlook. Albeit, September observed slight improvement in the market situations and new orders came in, though at a slower pace. Additionally, the demand conditions in the downstream water treatment and other end-use industries saw further development as inquiries from the European market also arose, post the vacation month. However, the market transactions were low and purchases were mainly on a need basis.
In the third quarter of this year, the dynamics of the Indian Sodium Bromide market exhibited notable fluctuations. The prices witnessed a decline in the first month due to the influx of low-priced imports and reduced production costs among the manufacturers in the exporting nations. Imports in India also fell compared to the previous year, primarily due to weak domestic demand, particularly in the downstream oil and gas drilling, water treatment, and pharmaceutical industries. August brought about a reversal in the trend as prices of Sodium Bromide rebounded. This resurgence was attributed to the imports of high-priced goods and an increase in offered quotations by major producing nations, driven by heightened demand in downstream water treatment and related industries. The shift in market sentiment turned positive as demand improved. September continued the upward price trend due to sustained imports of high-priced goods and further price increases from major producing nations. The positive market sentiment was supported by the increasing demand in downstream markets. However, manufacturing operations lagged, resulting in slightly constrained supplies. Therefore, the discussions for Sodium Bromide CFR 1820/MT as of September 2023.
In the third quarter of 2023, the Sodium Bromide market in Europe demonstrated mixed sentiments and the prices fluctuated throughout this period. In the initial weeks of Q3, the inflationary pressure impacted the business activities in the region and the consumer demand remained weak amid uncertain economic conditions as high interest rates took a toll on the business conditions. August marked a slight improvement in market sentiments, as there was a modest price increase, attributed to a boost in demand from the downstream industries. However, the supply side was lacking amid low operating conditions among the manufacturing firms. Come September, Sodium Bromide prices in the domestic market increased slightly. This was due to steady demand and rising production costs driven, in part, by fluctuating natural gas prices in Europe. The manufacturing activities were slow in the region as post the vacation season, the rebound in the market activities was poor due to which, the inventories of the product were low in the domestic market. Thus, the offered quotes for Sodium Bromide FD Barcelona settled at USD 1729 per tonne at the end of this quarter.
For the Quarter Ending June 2023
During Q2 2023, the US Sodium Bromide prices experienced a bearish trend, with prices declining for a major part of the quarter. In June, the prices of Sodium Bromide dropped slightly, reflecting the overall market sentiment. The decline in prices was driven by several factors, including reduced demand from the downstream industries and increased imports of low-priced goods. The demand from the downstream industries, such as water treatment and oil drilling, remained sluggish throughout the quarter. This slow demand led to reduced purchases and a lack of strong market support. As a result, suppliers faced challenges in maintaining price levels. Furthermore, imports of low-priced Sodium Bromide goods contributed to the bearish pricing trend in the US market. The availability of cheaper imports put pressure on the domestic market and impacted the price dynamics. The US market for Sodium Bromide also faced economic challenges during this period, with uncertainties in the global economic conditions. The overall demand outlook remained weak, and consumers were hesitant about new purchases, further impacting the market sentiment. After Q2 2023 ended, Sodium Bromide prices in the US were assessed at USD 1950 per MT on a FOB basis.
The Indian Sodium Bromide market witnessed a bearish trend in Q2 2023, with prices declining throughout the quarter. In June, the prices dropped further due to imports of low-priced goods and reduced production costs. Import volumes fell by 17.1% compared to the previous year, primarily driven by weak domestic demand. The downstream industries, such as oil and gas drilling, water treatment, and pharmaceuticals, exhibited weak demand for Sodium Bromide, contributing to the overall bearish market sentiment. The supply chain operated at a moderate pace, with imports of the product declining due to sufficient material availability in the domestic market. Despite a slight increase in factory activity indicated by the India Manufacturing Purchasing Managers' Index, the overall demand remained low to moderate, as inquiries from end-use consumers were slow. The reluctance of downstream industries to procure Sodium Bromide further dampened the demand outlook. In May, declining prices of upstream Bromine and low-priced imports impacted the market, leading to bearish sentiment. The supply chain remained resilient, and the overall supply of Sodium Bromide was moderate to high in the domestic market. However, the sluggish demand persisted, as the downstream industries showed reluctance to procure the product due to ample material availability. As of June 2023, Sodium Bromide prices in Asia were assessed at USD 1760 per MT on CFR basis.
The Sodium Bromide market in the Netherlands experienced a bearish trend in Q2 2023, with prices declining further in June. The drop in prices was driven by a contraction in industrial activities in the region, accompanied by weaker downstream demand. The manufacturing PMI slipped to 43.8 in June from 44.2 in May, reflecting a worsening demand outlook amid uncertain economic conditions. The eurozone faced a technical recession as the GDP of major economies declined in each of the last two quarters. Additionally, inflation rates in the eurozone rose due to higher energy prices. The demand from the downstream water treatment and oil drilling industries remained sluggish, leading to moderate purchases mainly based on demand requirements. At the same time, the production costs declined as the cost support from upstream Bromine decreased. The supply chain operations operated smoothly, with no major congestion or constraints observed. In May, the market sentiments for Sodium Bromide also declined due to a further contraction in manufacturing activities and subdued downstream demand. The manufacturing PMI dropped to 44.2, and new orders and export orders declined at a faster pace. The demand from the downstream industries remained suppressed, leading to lower purchases and a "wait-and-see" consumer attitude. After the conclusion of Q2 2023, Sodium bromide prices in Europe were assessed at USD 1680 per MT on an FD basis.
For the Quarter Ending March 2023
In the North American market, the Sodium Bromide market observed a mixed pricing trend in the first quarter of 2023. The market sentiments for the product were in positive territory in the first month of Q1 2023 amid increased production rates and a surge in demand from the downstream oil and gas drilling industry. In the next two months of Q1, the market prices of Sodium Bromide plummeted owing to weaker demand in the downstream oil and gas drilling industry and suppressed inquiries from domestic as well as international market participants. Amid looming inflationary pressure, uncertainties regarding the economy and the collapse of two banks in the US resulted in a weaker consumer demand outlook.
In the first quarter of April, the Sodium Bromide market in India showcased mixed pricing trends. The prices remained on a bullish trajectory in the first month of Q1 amid increased procurement of higher-priced Sodium Bromide from the European markets in the region. In the second month, the market prices plummeted due to moderate demand from the downstream industries in the domestic region. In March, the prices dropped slightly owing to weaker cost support from the upstream Bromine. The market prices fell primarily due to built-up inventories and moderate demand from the downstream oil and gas drilling industry in the domestic region. Thus, the market prices of Sodium Bromide CFR JNPT settled at INR 1829.53 per ton at the end of Q1 2023.
In the first quarter of April, the Sodium Bromide markets in the European region exhibited mixed pricing trends. The market prices observed a bullish argument at the spot market in the first month of Q1 owing to higher energy prices that directly constrained the availability of the material in the region. In February, the prices fell drastically, and the market fundamentals remained bearish in the region as the overseas inquiries dropped and the major manufacturers had ample inventories of the product. The prices continued to drop in March amid built-up inventories and sluggish demand outlook from the downstream water treatment and oil drilling industries. Thus, the offered quotes for Sodium Bromide FD Barcelona settled at USD 1780 per tonne at the end of Q1 2023.