- A spike in the price of chemical stocks on Wednesday.
- Around 50–55% of the world’s bromine capacity comes from the Dead Sea.
- Toluene prices jumped by roughly 6% and benzene prices by about 20% on October 23.
The Israel-Hamas conflict and Israel’s position as the world’s top producer of elemental bromide contributed to geopolitical concerns that saw a spike in the price of chemical stocks on Wednesday.
Gains ranged from 1% to 4% for the stocks of Vinyl Chemicals Ltd, Tata Chemicals Ltd, Aarti Industries Ltd, Atul Ltd, SRF Ltd, and GHCL Ltd.
Chemical stocks
Around 50–55% of the world’s bromine capacity comes from the Dead Sea, and according to Brokerage JM Financial, Israel’s position makes it uncertain to produce, export, and sell bromine from the region.
Lower operational costs for seawater bromine makers have resulted in a 40% increase in bromine pricing since June 23. Israel provides 30% of the global bromine supply, so any negative effects on exports could push prices up from the current USD 3.5/kg.
The company Archean, which produces bromine from the Rann of Kutch, stands to gain from any rise in the price of the commodity.
Toluene prices jumped by roughly 6% and benzene prices by about 20% on October 23. A significant increase in the prices of phenol and acetone over the past three months has resulted in a 38% growth in phenol-acetone spreads over benzene-propylene.
