SunSirs: Bromine Market Sees Strong Upward Trend

According to China Chemical Industry News, bromine prices halted their decline and rebounded in early July. Although downstream products were largely in their off-season, a significant drop in production prompted suppliers to raise their quotes, driving market prices up by RMB6,500 per tonne—a 12% year-on-year increase. The pace of price growth accelerated in August. Data from Baichuan Yingfu shows the market benchmark price rose from RMB 34,000 on August 1 to RMB 36,500 on August 7—an increase of nearly 7.4% in one week. By August 17, the mainstream spot price had reached RMB 40,000, reflecting an overall rise in the monthly average price. Additionally, starting August 12, the Shandong Haihua bromine plant raised its ex-factory prices, setting the rate at RMB 39,000 for direct-supply customers and RMB 40,000 for distributors.

Domestic Production Declines; Import Dependency Rises

my country's bromine production relies heavily on underground brine resources, with capacity concentrated in specific regions. Shandong Province is the primary production hub, accounting for over 80% of the country's capacity. Wang Bin, plant manager at Shandong Haihua Group, noted that the bromine content in Laizhou Bay brine has steadily declined in recent years, making extraction more difficult and causing output rates to plummet. Domestic bromine production fell from 135,500 tonnes in 2014 to 63,500 tonnes in 2025—a drop of more than 53% over the decade.

This decline in output has directly increased my country's reliance on bromine imports. Data indicates that my country's import dependency for bromine climbed to 66% in 2025, with supplies heavily concentrated in Israel and Jordan.

In July, frequent rainfall reduced bromine production from seawater in Shandong, Hebei, and Tianjin. Sampled enterprises reported a monthly output of approximately 5,600 tonnes—a 20% month-on-month decrease—with operating rates remaining low. Coupled with production halts at some facilities in Hebei, the overall operating rate dropped further; the average monthly operating rate stood at around 57%, down approximately 16 percentage points from June. Regarding imports, the volume of imported bromine remained consistently high, with import dependency holding at a significant level of around 50%. However, delays in the arrival of imports at the end of July—compounded by tight domestic spot supplies—further fueled bullish sentiment in the market.

Sellers Withhold Stock, Driving Prices Up

Industry insiders noted that in early July, bromine prices approached the cost line following a sustained decline. Prices for sulfur—a key raw material—fluctuated at high levels due to the geopolitical situation in the Middle East; this sustained cost pressure provided a strong floor for bromine prices. Consequently, producers became increasingly reluctant to sell at low prices, prompting the market to bottom out and rebound. Frequent rainfall during the month led to a significant drop in bromine production from seawater, while production halts or cutbacks at some facilities in Hebei further tightened spot supplies. Holders of stock withheld inventory, further boosting bullish expectations.

On the demand side, July is traditionally a slow season for flame retardants and pesticide intermediates. However, due to geopolitical conflicts in the Middle East that began in March, downstream enterprises had stocked up early, focusing on inventory depletion from April through June. By July, some buyers were making essential restocking purchases based on order volumes, and inquiry activity picked up as prices rose; nevertheless, most market participants remained cautious, lacking confidence in overall demand. At the end of July, delays in the arrival of imported bromine and tetrabromobisphenol A (TBBPA) prompted some buyers to place essential orders based on inventory levels, providing some price support.

Regarding price transmission to downstream products, TBBPA prices have risen in tandem, though the transmission effect on other products has fallen short of expectations. Wang Bin summarized that the July market was primarily driven by strong supply-side factors, with prices rising by a cumulative RMB6,500 —a 12% increase year-on-year.

Supply-Demand Standoff; Average Prices Rise at High Levels

In August, domestic bromine prices are likely to continue fluctuating at high levels, with the monthly average price expected to rise month-on-month.

On the supply side, operating rates for seawater bromine producers will likely remain low in August, making a significant recovery in output unlikely. Meanwhile, suspended plants in Hebei have no immediate plans to resume production, keeping spot supplies tight. Holders remain reluctant to sell at low prices; combined with the impact of fluctuating geopolitical tensions and uncertainties regarding imports, expectations for supply-side support remain strong. Regarding new capacity, a company in Hebei plans to commence production, though the initial output contribution will be limited. Overall, total supply in August is unlikely to differ significantly from July, though weather-related disruptions to production warrant close monitoring.

On the demand side, most downstream products remain in their off-season during August; operating rates at brominated flame retardant manufacturers are likely to stay low, with buyers purchasing primarily on an as-needed basis. Amid significant cost pressures, downstream buyers are cautious about purchasing high-priced raw materials, suggesting a continued standoff between upstream and downstream sectors. The average market price for bromine in August is projected to be around RMB35,000 per tonne, with a likely trading range of RMB33,000 to 39,000 per tonne.

Wang Bin noted that, in the long term, the contraction of domestic bromine production capacity has become an irreversible trend due to tightening environmental regulations and the gradual depletion of brine resources. Dependence on imports is likely to increase further, with international supply dynamics and geopolitical factors continuing to drive price trends. Meanwhile, growing demand from the new energy and high-end manufacturing sectors will continue to support the bromine market, likely maintaining a state of tight supply-demand balance for the foreseeable future.

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