Bromine

*Millions of pounds per year of elemental bromine. Commercial production is by heating sodium bromide containing brines and oxidizing to elemental form with chlorine. Crude bromine is then stripped from solution with either steam or air.

Albemarle, Great Lakes and Dead Sea Bromine in Israel account for more than 80 percent of world bromine capacity.

Albemarle operates two plants at the Magnolia site. Albemarle is nearing the completion of a joint-venture bromines complex under construction at Safi, Jordan. The project, called Jordan Bromine Co. Ltd., is half owned by Albemarle. The JV includes a 50,000-metric-ton-per-year bromine plant, scheduled to start-up in December. Also included are units for tetrabromobisphenol-A (TBBA) and calcium bromide.

Great Lakes Chemical has three plants at El Dorado: South Plant, 125 million pounds; Central Plant, 80 million pounds; and the Newell Plant, 55 million pounds. The Newell Plant, however, is presently idled due to economic conditions in the industry. Great Lakes has another 88 million pounds of bromine capacity at Amlwch, Wales.

Tetra Technologies (The Woodlands, Tex.) takes all of coproduct bromine produced at Dow Chemical’s calcium and magnesium operations at Ludington, Mich. Tetra consumes this in the production of bromine derivatives.

Ambar Chemical ceased production at their 30 million-pound capacity plant in Manistee, Mich., in 2000.

Profile last published 8/23/99; this revision, 10/21/02.

DEMAND
2000: 515 million pounds; 2001: 480 million pounds; 2005: 520 million pounds, projected. Demand equals production plus imports (2000: 12 million pounds; 2001: 12 million pounds) less exports (2000: 4 million pounds; 2001: 9 million pounds).

GROWTH
Historical (1996 - 2001): - 0.6 (minus) percent per year; future: 1.9 percent per year through 2005.

PRICE
Historical (1996 - 2001): High, $0.0.64 per pound, list, bulk, tl., works; low, $0.0.61, same basis. Current: $0.0.64, same basis. Current market price, $0.50 to $0.57, same basis.

USES
Flame retardants, 46 percent; drilling fluids, 20 percent; brominated pesticides (mostly methyl bromide), 9 percent; water treatment chemicals, 9 percent; photographic chemicals and dyes, 5 percent; pharmaceuticals, 4 percent; rubber additives, 2 percent; miscellaneous, 5 percent.

STRENGTH
Calcium, zinc and sodium bromides are used by the oil and gas drilling industry for high-density, clear drilling completion fluids. Bromine-based completion fluids are used for both offshore and onshore drilling. Demand is currently increasing with deeper wells being produced and the increase in crude oil prices this year.

Bromine-based biocides are finding increasing use in industrial cooling water treatment programs. Growth is due to environmental restrictions on chlorine and new alkaline-based treatment protocols that reduce corrosion. These require biocide activity at higher pH where chlorine is not effective, but bromine performs.

WEAKNESS
Bromine consumption in flame-retardants has decline in demand over the past couple of years because of the recessionary economy. This sector is both the largest market for bromine and the largest source of coproducts methyl bromide (from tetrabromobisphenol A [TBBPA]) and hydrobromic acid (from decabromodiphenyl oxide and others). Bromine based flame retardant demand will remain depressed until growth returns to the polymer applications they serve; largely associated with consumer electronics.

The fumigant methyl bromide is currently the major bromine-containing pesticide used in the United States. Its use as a pesticide is currently being phased out both in the United States and all other developed countries, since atmospheric scientists have concluded that use of methyl bromide contributes to the destruction of the ozone layer. Complete phase out of methyl bromide is scheduled for 2005, with certain quarantine and emergency uses exempted.

OUTLOOK
Bromine’s market demand is largely determined by the flame-retardant sector. Bromine based flame retardant demand, in turn, will remain depressed until growth returns to the polymers used in consumer electronics. These polymers are tied to macro-economic growth, which is not likely to turn around until mid-2003. After that flame retardant growth is expected to return to its more traditional 4 percent annual rate. That said, the market this year has been up, after last year’s significant decline. Aggregate bromine growth, through 2005 is forested at 1.9 percent annually.