Important Flame Retardant Industry Update-Market Analysis For The Past 2 Years

Important Flame Retardant Industry Update -Market Summary for the past 2 years

Dear valued customers and prospects ,

Mei Wang Chemical wants to take a moment to share some crucial insights regarding recent price rising trend in the flame retardant industry.

As many of you are aware, the availability and cost of raw materials have a significant impact on the pricing of end products. In a recent one month, we have witnessed a substantial increase in the cost of bromine, a key raw material for brominated flame retardants. This surge in costs has directly translated into the increased prices of brominated flame retardants. Other flame retardant raw materials like phosphorus and melamine are also steadily rising.

                                                              (Reference: Price index Trend 2023)

While Mei Wang as the flame retardant manufacturer, continue to strive for efficiency and cost-effectiveness, it's important to acknowledge that market dynamics sometimes present challenges beyond our control. As a result, we anticipate that the price for brominated and halogen free(phosphorus and nitrogen series) flame retardants are in an uptrend

How to deal with the rising trend of prices-Mei Wang suggestions in 4 points

In light of this situation, we strongly recommend that our esteemed customers and partners consider proactive measures to manage potential cost increases. Here are a few steps or suggestions you might consider during the fluctuated market trend:

1.Early Planning: Engage with your procurement teams and plan your flame retardant requirements well in advance for both existing demand or new project. This approach can provide you with the advantage of stable pricing and ensure a seamless supply chain.

.2.Collaborative Forecasting: Work closely with the suppliers to share your projected demand. This collaborative effort allows us to optimize production schedules and allocate resources effectively.

3.Exploring Alternatives: Consider discussing alternative flame retardant options with our technical experts. We are committed to helping you identify solutions that meet your performance and budgetary requirements.

4.Long-Term Partnerships: Establishing long-term partnerships can offer benefits in terms of cost stability and priority access to resources during periods of market volatility.

Mei Wang Important Update-Chinese Flame Retardant Market Trend Analysis for past 2 years

Now We are in the Q3 of 2023, compared to 2022, Mei Wang Chemical’s sales performance is still keeping growth under the weak global economic environment, it contributes to Mei Wang hard-working sales team and timely market analysis from our leadership team, as the global well-known flame retardant manufacturer, Mei Wang always love to share the market insights and our analysis with customers, here is a brief summary for the past two years, hope it can bring you some help or thinking:

 FR market status before Sep, 2021 (Stable level): 

1. Before September 2021, the market remained relatively stable with minor fluctuations.

FR market status during Sep, 2021 to the beginning of 2022 (sharp increase): 

 2.Extreme market conditions emerged in September,2021 due to policy factors such as carbon emission index and energy consumption requirements. Phosphorus production capacity was drastically reduced by 90%, resulting in a sharp price surge with fluctuations occurring twice a day. The surge in phosphorus prices also impacted the bromine market. Additionally, the insufficient bromine production capacity of Albemarle led to a sudden skyrocketing in the bromine market.

FR market status during Q1-Q3, 2022 (stable and come back to normal level) 

3.The booming market conditions persisted until the end of 2021. From the beginning of 2022, as policies were easing, the supply gradually back to normal, and prices began to decline.

 
FR market status during Q4, 2022 to 1st half of 2023 (sharp down due to global economy recession)

4.In the Q4 of 2022, a global economic contraction suddenly occurred, leading to a sharp decline in demand. Both phosphorus and bromine prices plummeted. The state of economic slowdown lasted for nearly three quarters.

FR market status from July, 2023 (start to rise due to global economy recovery)

5.In the third quarter of 2023, following a bottoming out of bulk raw materials in June, lot of end-users began to prepare inventories at low price levels and boosting demand. Meanwhile, economic or market is slowly recovering , the raw material has began to rise slowly.

Conclusion:

At Mei Wang Chemical, we value our relationship with each of you, and it is our constant endeavor to provide the best value and service. While external factors may challenge us, it is through proactive planning and partnership that we can navigate these challenges together.

Feel free to reach out to our team for further discussions, assistance, or any questions you may have. We remain dedicated to supporting your needs and helping you navigate the market changes.

Thank you for your continued trust and collaboration. Together, we can ensure a prosperous future.