🪝Bromine Prices
🪝NPE 2024 Recap
🪝Freight Updates
Bromine Market Rides Supply Shocks and Demand Revival
Prices for the industrial workhorse chemical bromine are pushing higher amidst tightening global supply and rebounding demand from key sectors. In China, a bromine production hub, domestic prices climbed nearly 2% in May to 20,800 RMB/ton ($3,065) even as upstream costs fell. Providers competed for limited supply to serve still-resilient downstream industries like flame retardants.
The supply crunch for bromine intensified in the U.S. towards late April as disruptions from the Red Sea crisis impacted imports from major suppliers. This tight availability collided with firm domestic demand, notably from construction and other segments, driving prices upwards. Despite logistics constraints, leading U.S. producer LANXESS remained optimistic for volume growth. Domestic demand stayed robustly above 2023 levels.
Looking ahead, data points to further bromine price gains driven by steadying economies, rising consumer spending, and overseas demand revival. Any easing of persistent supply chain frictions could accelerate the upward pricing momentum. Market participants closely eye shifting supply/demand dynamics in the fast-evolving landscape.
Sources:
ChemAnalyst
Intratec
SunSirs
NPE2024: The Plastics Show closed out a historic week in Orlando, solidifying its reputation as the premier plastics industry event in the Americas. The show drew an incredible turnout of over 50,000 registrants, including a remarkable 63% who were first-time NPE attendees.
In a promising sign for the industry’s future, 30% of this year’s attendees were under 40 years old – one of the youngest audiences NPE has ever welcomed. This fresh-faced turnout reflects rising enthusiasm for innovation, sustainability and plastics’ promising trajectory.
The global draw of NPE also reaffirmed the show’s international clout. More than 15,000 international registrants from 133 countries made this the most internationally attended NPE in history, up nearly 10% from the 2018 event. From sold-out networking events to the packed expo halls, NPE2024 was fostering worldwide collaboration.
To get a recap of NPE2024, visit npe.org/npetv for daily episodes of the innovations on the show floor. The NPE team looks forward to the next show happening May 3-7, 2027, in Orlando, FL.
For updates on NPE2027, visit NPE.org
Shipping and Trucking Trends Impacting Costs
The global supply chain continues to face a mix of challenges and optimizations. Efforts to enhance efficiency at the Panama Canal are bearing fruit, with an increase in slots per day facilitating smoother transit for vessels. However, severe weather events in recent weeks have added to port congestion at major transshipment hubs like Busan and Singapore. Meanwhile, instability in the Middle East has many carriers rerouting freight away from the Red Sea and Suez Canal.
On the trucking front, the 2024 dry van linehaul cost forecast remains at a 2% year-over-year decrease. As expected during the produce season, temperature-controlled freight rates are increasing first. Despite an oversupply in the market, rate increases are anticipated through May for both dry and refrigerated vans. However, spot rates are still below breakeven costs, indicating a loose environment likely continuing into June.
Looking ahead, an extended forecast offers projections into early 2025. After the holiday peak late this year, rates are expected to decrease for a few months. However, the rates are not projected to reach the lows of 2023 or 2024 during this period, suggesting a potential tightening of the market next year. The outlook remains mixed, with lingering overcapacity pressuring costs down but seasonal patterns and gradual supply/demand rebalancing pointing to higher costs ahead.
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