For the Quarter Ending March 2025
North America
In North America, the Hydrobromic Acid market during the first quarter of 2025 showed some resilience but remained largely influenced by the ongoing dynamics in the global market, particularly in APAC. Demand for hydrobromic acid in North America was steady, driven primarily by the agricultural sector, which continues to use the chemical in pesticide formulations. However, despite stable demand, the region struggled with price pressure as producers contended with the competitive global landscape, especially the abundant supply of hydrobromic acid in China.
Manufacturing activities in North America were moderate, with supply chains being impacted by global logistical issues and cost pressures from rising bromine prices. While there was no significant supply shortage in North America, the region faced some challenges in terms of raw material costs and the fluctuation in the availability of hydrobromic acid, as APAC continues to dominate the production and supply.
The agrochemical sector maintained consistent consumption levels, yet the growing supply from China and the overall price sensitivity of the market left little room for price increases. North American demand was not as heavily affected by seasonal factors as seen in APAC, but the region did experience slower procurement activity in line with the global trend.
APAC
In the first quarter of 2025, Hydrobromic Acid prices in China experienced a general downward trend due to high inventory levels and reduced procurement activity, particularly following the Lunar New Year holiday. Despite an increase in global demand for agrochemicals, China's abundant supply of hydrobromic acid kept prices under pressure, limiting profitability for producers. The domestic market faced an oversupply, partly due to a decline in export activities, which further contributed to the surplus.
Manufacturing conditions saw a slight slowdown, with production rates moderated by high stock levels and reduced industrial output during the holiday period. However, after the Lunar New Year, there was a rebound in industrial activities, leading to a slight uptick in prices by March, primarily driven by rising upstream bromine costs. Demand from the agrochemical sector remained stable throughout the quarter, with its consistent role in pesticide formulations supporting steady consumption.聽
Despite these factors, the overall market was impacted by cautious procurement behavior, with buyers hesitant to engage in significant purchases amid high inventories. The first quarter of 2025 also saw external factors, such as geopolitical risks in the Red Sea, affecting bromine supply chains, and contributing to higher production costs. Nonetheless, the domestic market for hydrobromic acid remained relatively subdued, with moderate demand and fluctuating supply dynamics influencing price trends.
Europe
In Europe, the hydrobromic acid market in the first quarter of 2025 reflected the region's ongoing dependence on the dominant APAC market. The European market saw relatively stable demand, particularly from the agrochemical sector, with hydrobromic acid being an essential component in pesticide production. However, European producers continued to face price pressure, stemming from the oversupply situation in China, which is the largest supplier of hydrobromic acid globally.聽
The manufacturing sector in Europe was relatively steady, but with global shipping and logistical disruptions, as well as rising bromine costs, the supply chain faced some challenges. However, Europe benefited from a diversified supply base, which allowed it to better weather the effects of the APAC market's fluctuations. While the region did not see the dramatic drops in price seen in China, European suppliers had to remain competitive to secure sales in a market where lower-priced Chinese imports exerted downward pressure.
In the broader market, Europe鈥檚 agrochemical demand remained stable, with agricultural activity in regions like the EU continuing to provide a consistent, albeit moderate, consumption of hydrobromic acid. However, as global competition and supply issues lingered, the European market stayed vigilant for changes in the APAC supply chain that could affect pricing and availability moving forward.
For the Quarter Ending December 2024
North America
The hydrobromic acid market in North America during Q4 2024 experienced mixed price dynamics, shaped by fluctuations in its upstream bromine market and demand uncertainties in downstream sectors.聽
The quarter began with declining hydrobromic acid prices, reflecting weaker consumer demand from pharmaceutical and agrochemical sectors. The geopolitical instability caused by the Israel-Palestine conflict disrupted bromine imports, particularly from Israel, limiting upstream supply and creating initial pressure on hydrobromic acid production costs. The pharmaceutical sector faced procurement challenges, and the agrochemical market was affected by seasonal shifts, limiting the impact of end-user purchases. By mid-quarter, as production constraints in the Middle East persisted, the resultant supply shortages drove a moderate rebound in bromine prices.聽
However, hydrobromic acid producers in North America struggled to pass on these costs due to abundant domestic inventories and subdued demand. Toward the end of the quarter, improved import volumes and reduced shipping costs facilitated cheaper bromine availability, slightly alleviating upstream cost pressures. Despite steady industrial activity in flame retardants and water treatment applications, hydrobromic acid prices saw only marginal improvement in December, reflecting a market characterized by high supply and restrained downstream consumption.聽
APAC
In Q4 2024, the hydrobromic acid market in the APAC region exhibited a bearish trend, primarily driven by a combination of weak downstream demand and high inventory levels. Prices declined steadily throughout the quarter, with notable decreases in October, November, and December. In October, reduced consumer demand in China鈥檚 solvent manufacturing and pharmaceutical sectors led to a price drop. The pharmaceutical industry faced headwinds, including anti-corruption measures and weakened export growth to the EU and US, further dampening demand. The agrochemical sector, while maintaining steady seasonal demand, could not offset the oversupply stemming from elevated inventories. By November, prices dropped due to high stock levels and subdued post-holiday procurement. Rising production costs for upstream bromine, coupled with adverse weather conditions, squeezed profit margins for domestic producers. The year-end saw intensified destocking activities, further pressuring prices as manufacturers sought to optimize inventory levels. In December, the bearish sentiment continued with a 2.4% price drop. Elevated inventory levels reduced downstream activity, and limited recovery in trading momentum from key sectors contributed to the decline. While demand for hydrobromic acid in APIs and pesticide formulations remained stable, the modest volume of transactions and oversupply kept the market under pressure.聽
Europe
The European hydrobromic acid market during Q4 2024 faced downward pricing pressure, primarily influenced by weakening demand and upstream bromine market dynamics. Early in the quarter, the upstream bromine market in Europe exhibited moderate stability, supported by consistent demand from the flame retardant and drilling fluid sectors. However, hydrobromic acid demand remained subdued, with pharmaceutical and agrochemical sectors reporting limited purchasing activity amid economic uncertainties. The agrochemical sector, a significant consumer of hydrobromic acid, showed slower growth due to seasonally low pesticide application and reduced agricultural activity during the winter months. Meanwhile, the pharmaceutical industry's focus on cost management and inventory optimization curtailed additional procurement. By mid-quarter, declining bromine imports from the Middle East, driven by geopolitical unrest, created upstream supply constraints. However, this did not translate into significant hydrobromic acid price increases due to the region's already elevated inventory levels. Additionally, softening freight rates within Europe supported stable bromine supply, limiting cost escalation for hydrobromic acid manufacturers. In December, as year-end inventory clearance intensified across the chemical supply chain, prices for hydrobromic acid faced additional pressure.聽
For the Quarter Ending September 2024
North America
In Q3 2024, the North American hydrobromic acid market experienced a sharp decline in prices, with the most notable impact observed in the USA. Multiple factors contributed to hydrobromic acid price drop, including reduced demand from downstream industries such as flame retardants and chemical intermediates, both domestically and internationally, due to sufficient material availability in the consumer markets.聽
Additionally, decreased consumer spending in the USA further dampened hydrobromic acid consumption. The ongoing conflict in the Middle East also disrupted imports, adding to the pressures on market dynamics. Comparing Q3 2024 to the same period last year, prices dropped by significant margins, reflecting difficult market conditions in the North America region.
Furthermore, quarter-on-quarter prices also decreased, with a consistent downward trend throughout the quarter. The latter half of the quarter continued to follow the broader price decline, ultimately concluding at subdued levels, signaling a persistently bearish pricing environment that reflects ongoing challenges such as reduced consumer demand and increased competition in the market landscape.
APAC
In Q3 2024, the Hydrobromic Acid market in the APAC region experienced a significant decline in prices, with China showing the most substantial price changes. Factors influencing this trend include weak consumer demand, oversupply issues, and reduced support from upstream markets like Bromine. High inventory levels, sluggish consumption rates, and challenges in the downstream pharmaceutical sector have contributed to the downward price trajectory. The overall trend in the region has been bearish, with prices falling by 18% compared to the same quarter last year. Furthermore, there was a 7% decrease from the previous quarter in 2024, indicating a continuous downward trend. The price comparison between the first and second half of the quarter revealed a 3% decrease, highlighting the sustained price decline. The quarter-ending price of USD 1940/MT of Hydrobromic Acid 48% FOB- Shanghai in China signifies the prevailing negative sentiment, reflecting a pricing environment that has been consistently decreasing throughout Q3 2024 due to subdued demand and oversupply pressures in the market.
Europe
In Q3 2024, the hydrobromic acid market in the Europe region experienced a downward trend in prices, influenced by several key factors. A notable decrease in demand from downstream sectors, particularly in the production of flame retardants and specialty chemicals, contributed to an oversupply situation, exerting downward pressure on hydrobromic acid prices. Increased production rates from major manufacturers, combined with ample material availability, further exacerbated the pricing challenges. Additionally, ongoing geopolitical tensions and supply disruptions in the region impacted market dynamics, creating further uncertainty. Specifically, in the Western European market, hydrobromic acid prices saw significant fluctuations throughout the quarter. The overall pricing trend remained negative, reflecting a substantial decrease compared to previous quarters, as well as the previous year. The market ended the quarter with a notable decline in prices, underscoring the prevailing bearish sentiment driven by reduced demand and competitive supply conditions. The closing price of hydrobromic acid in the region highlighted the challenges faced by producers amidst ongoing market volatility.
For the Quarter Ending June 2024
North America
In Q1 2024, the US Hydrobromic Acid market maintained a mixed trend. Subdued demand from downstream sectors such as solvents and chemical manufacturing, combined with an oversupply and inventory destocking by consumers, led to reduced production rates by domestic manufacturers. The slow influx of new orders from international markets further affected the market. During the first month, the support from the upstream Bromine market dropped due to minor price adjustments by sellers, despite stable demand from flame retardant and intermediate industries. Economic improvements and increased consumer spending bolstered market fundamentals, but imported supplies were constrained by ongoing Middle East tensions.
Prices stabilized towards the end of the quarter but remained largely unchanged, with minimal variation in offered quotations. Although the US experienced significant price fluctuations, market sentiment was relatively stable, influenced by trends in the upstream Bromine market. Israel's weakened exports impacted the market, though a leading US bromine manufacturer ended the fiscal year positively, with strong prospects for growth, particularly from projects in Arkansas. However, geopolitical tensions, including recent attacks and disruptions in the Strait of Hormuz, have affected global trade routes and container shipping.
Despite the recession, inflation, and geopolitical uncertainties, consumer confidence in the US grew in February and March, suggesting positive expectations for future business conditions. Overall, the North American Hydrobromic Acid market faced challenges like weak demand and bearish sentiment, reflected in a notable price decrease compared to the previous year. Overall, while demand remains steady, logistical issues and rising freight rates have added strain to the market.
APAC
In Q2 2024, the APAC region witnessed a sustained decline in Hydrobromic Acid prices, driven by several significant factors. During this quarter, the market for Hydrobromic Acid was heavily influenced by a persistent oversupply condition and weak consumer demand from international markets. The downstream industries, particularly solvent manufacturing, and the pharmaceutical sector, faced sluggish consumption, exacerbated by reduced industrial activities and increased production rates leading to high inventory levels. Additionally, steady ocean freight rates in the early part of the quarter, despite rising mid-month peak season surcharges, contributed to a complex pricing environment. Focusing on China, which experienced the most pronounced price changes, the overall trend was marked by a bearish sentiment. Seasonal factors, such as reduced industrial activity and economic slowdowns, compounded by ongoing supply chain disruptions, led to significant price drops. The price of Hydrobromic Acid in China declined by 20% compared to the same quarter last year, reflecting substantial market contraction. From the previous quarter in 2024, prices fell by 9%, indicating continued downward pressure. A further 4% price decline was observed between the first and second halves of Q2, underscoring the sustained negative trend. The latest quarter-ending price for Hydrobromic Acid 48% FOB Shanghai was USD 2050/MT, encapsulating the consistent decline throughout the quarter. The pricing environment has been decidedly negative, influenced by oversupply, weak demand, and economic uncertainties, signaling a challenging market landscape for Hydrobromic Acid in China and the broader APAC region.
Europe
In Q1 2024, the European Hydrobromic Acid market experienced volatility due to a combination of supply and demand factors. On the supply side, decreased prices of upstream raw materials, particularly Bromine, reduced cost support. Supply chain disruptions were exacerbated by high freight charges stemming from geopolitical tensions in the Middle East, affecting key shipping routes such as the Red Sea and the Suez Canal. Conflicts, including the Israel-Hamas tension and actions by Yemen鈥檚 Houthi forces, contributed to these challenges. Demand remained weak, with downstream industries showing low consumption levels domestically and internationally due to high existing inventories and reduced new order volumes. In the upstream Bromine market, Israel's reduced exports have influenced the market, but a major US bromine manufacturer concluded the fiscal year on a positive note, buoyed by promising growth prospects from its Arkansas projects. Despite this, geopolitical tensions, such as recent attacks and disruptions in the Strait of Hormuz, have disrupted global trade routes and container shipping. Germany鈥檚 economic situation, Europe鈥檚 largest economy, showed limited recovery, with high financing costs and sluggish domestic demand dampening business and consumer confidence. This was reflected in reduced market transactions and trading activity, with only marginal improvements reported in industrial production, construction, and foreign trade.
