Oil Price Drop to Offer Succor as Raw Material Purchase Costs Give Lifeline to Bromine Market Players
According to the latest report by Future Market Insights, the global bromine market will be worth US$ 3.2 Bn by 2030. With a large share in oil and drilling applications, bromine and its derivatives are seeing high demand growth in the US.
High demand for bromine derivatives and Clear Brine Fluids (CBFs) is seen in the US which is seeing an uptick in drilling and exploration activities for oil.
Despite the ongoing pandemic, players in the bromine market are engaging in smart procurement moves for bromine and its derivatives in order to preserve their margins. Efforts are also being undertaken to secure long-term strategic liaisons by manufacturers with their customers and partners to offtake production and keep plants operational in the interim.
Key Takeaways of Bromine Market
- Flame retardants account for the largest share in the bromine market. Despite stringent regulations banning brominated flame retardants, this segment will showcase strong growth through 2030
- Asia Pacific was the largest regional market for Bromine in 2019. Within this region China accounted for 13% bromine production
- With high uptake of bromine as a flame retardant in electronics manufacturers are re-shoring to regions within Asia Pacific on back of cost-effective raw materials and cheap labor
- High recyclability of hydrogen bromide along with virgin bromine brines is upping the overall production of bromine globally
COVID-19 to Compound Challenges of Refiners
Bromine and in particular, the chemicals industry, will feel the impact of COVID-19 in the near term. The bromine market like other major chemical sectors will continue to face supply chain disruptions owing to outbreaks in various regions.
Regions such as Asia Pacific, North America and Europe which have till now remained key producers of bromine may feel the adversarial effects of the pandemic and prevailing uncertainty in capital markets.
Slackening growth in consumer goods, automotive and the construction sector is also impacting the demand for brominated flame retardants in these end-use industries. Refineries producing bromine are facing significant challenges with facility shutdowns.
Bromine Market – Competitive Intelligence
The market structure for bromine is highly consolidated with leading stakeholders producers accounting for three-fourth of the supply. With technological advancements in bromine and its derivatives as well as collaborative ventures between major players, the market is witnessing high growth in pharmaceuticals, construction, electronics and oil & gas.
- Israel Chemicals Ltd, headquartered at Tel Aviv, is one of the leading players in the market manufacturing elemental bromine. With an estimated capacity of 280,000 MT of bromine per year, the company serves diverse sectors such as construction, pharma, energy and automotive. To reduce its overall operating cost the company looks at establishing new pumping stations in locations around the Dead Sea to maintain bromine production. The company also collaborated with Albermarle Corporation to develop a new generation of polymeric flame retardants with reduced emissions
- Lanxess AG, headquartered in Germany offers brominated flame retardants which are primarily being used in building insulation. The company recorded a strategic milestone with its acquisition of Chemtura, a US company which has made it one of the most important players in the additive market and has also given it a foothold in urethanes and organometallics divisions
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