The increase in bromine prices has seriously affected the cost of flame retardants, making it difficult for companies worldwide to get the supply they need for their products.
But why has the cost of bromine increased so much since 2020? Why have we seen such a rapid increase in the price of bromine over the past few months?
These are all questions companies like you are asking yourself as you try to order your usual order of flame retardant only to see it’s shot up in price.
Today we’re going to show you exactly why the cost of bromine and flame retardant has increased in price and how COVID-19 has contributed to the inflated cost of bromine.
Over the last couple of months, the price of bromine has increased a lot. This is primarily due to an increase in chlorine prices. Chlorine is a critical raw material in bromine production. The cost of chlorine has skyrocketed due to the imbalance in the chloralkali market.
The industrial production of bromine involves a direct reaction of chlorine with brine rich in bromine ions. So chlorine is an essential part of the production of bromine and the production of flame retardant.
This process is simple, fast, and quite economical. But the price of chlorine is causing this process to cost a lot more than it initially did.
This increase in chlorine cost makes bromine production incredibly expensive which is pushing the bromine market price to increase as demand continues to rise.
The outbreak of COVID-19 had a significant impact on a lot of industrial operations all around the world.
There were:
There were also many other restraints that made industries suffer globally. With all these significant challenges faced by the industries, bromine production was just another issue added to the already heavy pile of problems.
During the first phase of the coronavirus outbreak, operation rates fell sharply. Some plants even had to halt bromine production for a few days completely.
There was a massive absence of end-users during the pandemic because nobody was working on their projects, so chlorine and bromine weren’t needed. This lack of end-users significantly reduced the demand for products, especially chlorine.
Because of the lack of demand during the coronavirus pandemic, the key players in the market reported an intense decline in revenue. Plus, the global market, for the first half of 2020, seriously dipped and lost a lot of profit.
For example, Olin Corporation, the world’s largest producer of chlorine globally, reported a loss of 80 million USD in the first quarter of 2020 due to the massive dip in sales prices and demand volume.
In 2021, when the demand for chlorine came surging back, the industry ran into issues. They had no chlorine because they shut down the plant due to revenue decline. This created an incredible, record-breaking shortage of chlorine.
With the demand rising rapidly, the bid price for chlorine also started to increase rapidly. This increase in chlorine prices also brought the cost of bromine production to reach record prices and, in turn, increased the price of flame retardants.
Bromine is widely used in the chemical and pharmaceutical industries, and it’s also used in the pool and spa industries, especially now due to the shortage of chlorine.
Chlorine serves multiple purposes in swimming pools as it kills germs and makes it safer to swim in the water. It keeps pool water crystal clear, but because of the shortage, many pool owners are turning to the number one alternative – bromine.
Bromine is a sanitizing chemical that will kill algae, germs, and bacteria in pools. It works similar to chlorine and is even less irritating to your skin.
Chlorine and bromine are chemically related and halogen elements, but they exist in different states. Chlorine is a gas at room temperature, whereas bromine is a liquid.
Bromine is an attractive alternative to chlorine for pool owners because it doesn’t require you to purchase additional equipment. However, it is more expensive and is only going to continue to increase in price the higher the demand is.
Because we need chlorine to make bromine, the demand for chlorine will also continue to rise, which will make flame retardants incredibly expensive to create and import.
If you’re looking to order flame retardants and smoke suppressants, Ocean Chemical is here to help.
We have extensive knowledge in flame retardants and can provide your business with everything it needs to accomplish its goals even during these shortages.
With over 25 years of flame retardant industry experience, we’re the right choice for all your brominated, non-halogenated, and synergist flame retardant solutions.
We are always here to see to the needs of every one of our clients. Get what you need today by getting in touch with the talented team at Ocean Chemical.