Global Flame Retardant Supply Firms Busy Expansion of Production

In the past two years, the global demand for related products such as bromine and phosphorus flame retardants and antimony trioxide has continued to increase. However, shortages of these products have resulted from the shortage of raw materials. Industry insiders expect that the supply of flame retardant market will remain difficult to change in the future.

In Asian markets, the demand for alternatives to HBCD and DecaBDE flame retardants, such as tetrabromobisphenol A and its epoxidized oligomers, both grew rapidly in double digits. This is due to the strong demand from the Asian electronics industry and the strength of the Chinese market.

In the international market, investment in bromine production in Israel has stagnated in the past two years, and the market for raw material bromine has become tense. As a result, the price of bromine has doubled since 2004. Before the completion of the expansion of new production capacity in the first half of 2006, the bromine market supply may still be tight.

Driven by strong demand in China, the demand for phosphorus flame retardants is increasing at an average annual rate of 20%. The supply of phosphorous raw material, phosphorus, mainly depends on Chinese manufacturers. Da Ba Chemical Industry and Xu Xuhua are two Japanese phosphorous flame retardant manufacturers. At present, the two companies are busy expanding production in China and Japan.

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