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In the past two years, global demand for flame retardants—such as bromine-based products, phosphorus-based compounds, and antimony trioxide—has seen a steady rise. However, this growing demand has been met with supply challenges, primarily due to shortages of key raw materials. Industry experts suggest that the overall supply situation in the flame retardant market is unlikely to improve significantly in the near future.
In Asia, particularly in China, there has been a strong shift toward alternatives to HBCD and DecaBDE flame retardants. Products like tetrabromobisphenol A (TBBPA) and its epoxidized oligomers have experienced double-digit growth in demand. This surge is largely driven by the expanding electronics sector in the region, where manufacturers are seeking safer and more sustainable options. The Chinese market, in particular, has played a major role in fueling this trend.
On the international front, bromine production in Israel has remained stagnant over the past two years, leading to a tight supply situation in the bromine market. As a result, prices have nearly doubled since 2004. With new production capacity expected to come online in the first half of 2006, the market may see some relief, but until then, supply constraints are likely to persist.
Meanwhile, the demand for phosphorus-based flame retardants in China has been growing at an average annual rate of 20%. This is largely due to the country's booming manufacturing and construction sectors. The supply of phosphorus, a key raw material, is heavily dependent on Chinese producers. Two Japanese companies, Da Ba Chemical Industry and Xu Xuhua, have been actively expanding their operations in both China and Japan to meet this rising demand and secure a stronger foothold in the market.