Bromine Prices Increase Due to Middle East Tensions
-
Raven Ruma
- . April 29, 2024
- . Update: April 29, 2024 8:27 pm
Bromine Prices Increase – The US Bromine Prices Increase in April 2024 due to ongoing geopolitical tensions in the Middle East. Amid the conflict between Israel and Palestine, coupled with the intervention of Iran, Bromine prices have increased this month. The arrival of container ships carrying Bromine has been delayed, resulting in compromised Bromine supplies in the US market, which imports most of its Bromine from China, causing Bromine prices to increase further.
Middle East Tensions Impact Bromine Supplies, Increase Bromine Prices
Amid delayed shipments of Bromine from Israel and Jordan due to heightened tension in the Middle East, the prices of Bromine have increased in the Asian markets, leading to an increase in Bromine prices globally. The sea trade routes have been heavily affected by the heightened tensions in the region, disrupting Bromine shipments and causing Bromine prices to increase.
Elevated Freight Rates and Supply Chain Disruptions Increase Bromine Prices
The freight rates have remained elevated, although a few supply-related issues have eased, contributing to an increase in Bromine prices. Asia to North America rates for shipping Bromine remain significantly higher compared to 2019, with a 90% increase to the West Coast and a 60% increase to the East Coast, increasing Bromine prices. Red Sea diversions continue to absorb capacity, resulting in rare blank sailings even during the slower months, further increasing Bromine prices.
Keep Reading
Bromine Demand from Construction Industry Increases Bromine Prices
On the demand front, consumer demand for Bromine from the downstream construction industry, where Bromine finds its major usage, has shown improvement in the previous months, increasing Bromine prices. The inquiries for Bromine from the downstream flame-retardant and other intermediate industries were noted to be stable, further increasing Bromine prices. Construction spending in February 2024 was estimated at a seasonally adjusted annual rate of USD 2,091.5 billion, up by 10.7% compared to February 2023, amounting to USD 1,889.6 billion, indicating a growing demand for Bromine and an increase in Bromine prices.
The latest price assessment from Bromine Bulk CIF Houston was USD 2253/MT in the week ending on 26th April 2024, reflecting an increase in Bromine prices. According to the ChemAnalyst pricing intelligence, Bromine prices are anticipated to demonstrate a further increase in the upcoming week on the back of improved consumer demand and the influx of higher-priced goods amidst changing supply dynamics influenced by the ongoing global supply chain disruptions, which have caused Bromine prices to increase significantly.
