Shipping costs are rising! Bromine prices have increased by over 30k yuan per ton, industry insiders say: the price hike lacks sustainability

This newspaper (chinatimes.net.cn) reporter He Yihua Li Weilai Beijing reports

The Strait of Hormuz navigation crisis has not only caused a sharp rise in international crude oil prices but also led to significant fluctuations in very niche chemical product prices.

Since the beginning of this year, the price of bromine has been steadily rising, and after March, the trend of bromine prices has skyrocketed. Data from Business Society shows that on March 8, the bromine quotation was still 39,700 yuan/ton, by March 22, the price had soared to 51,000 yuan/ton, and on April 3, the bromine quotation had changed to 70,200 yuan/ton.

The capital market naturally did not miss this round of market, with bromine concept stocks frequently rising. As of the close on April 3, Soli Co., Ltd. (603585.SH) hit the 3rd limit-up three times in six days, Shandong Haihua (000822.SZ), Lubao Chemical (600727.SH), and others saw significant gains.

The reporter noticed that bromine, as a niche chemical product with limited capacity, is not the main business of listed companies. Can the rising bromine prices drive the performance growth of related companies?

A staff member from Binhua Co., Ltd. (601678.SH) Secretary Office told “Huaxia Times” that the company’s bromine capacity is over 5,000 tons, with a low revenue proportion, but large fluctuations in unit price still have some impact on the company’s performance. Another staff member from a listed company said that increasing profits by tens of millions is good for small companies, but for large companies, the performance boost is limited.

Overseas supply disruptions

From January to March 2026, domestic brine bromine production enterprises suspended or limited production, and seawater bromine enterprises, affected by lower temperatures, operated at low loads. Production companies’ inventories were not under much pressure, and holders were reluctant to sell at low prices, leading to steady market prices with an upward trend.

Data from Business Society shows that on January 3, 2026, the bromine price was 35,000 yuan/ton; by January 20, it had risen to 38,600 yuan/ton; on February 6, the price increased to 41,600 yuan/ton. After that, bromine prices stabilized, with the price on February 23 still at 41,600 yuan/ton, and on March 4, it fell back to 39,700 yuan/ton. Since then, bromine prices have continued to rise to 70,200 yuan/ton on April 3.

Zhao Qianqian, bromine analyst at Zhuochuang Information, told “Huaxia Times” that since March, the main driver of the bromine market price increase has been supply-side factors. Domestic bromine production has gradually increased, while due to geopolitical tensions in the Middle East, foreign bromine supply has decreased, shipping cycles have lengthened, and imported sources could not be supplied in time, leading to a reduction in total domestic supply. Sellers are holding back stock and reluctant to sell at low prices, with strong market sentiment to raise prices.

Galaxy Securities pointed out that escalating geopolitical conflicts in the Middle East could lead to a temporary reduction or halt of some bromine production facilities in Israel, potentially causing a supply gap; additionally, logistics costs for bromine exports from Israel and Jordan will significantly increase, and transportation cycles are uncertain, which could push the price center of bromine upward.

It is reported that Israel and Jordan are the world’s two major bromine producers. According to Longzhong Information, Israel and Jordan account for 33% and 19% of global bromine capacity, respectively. China is the world’s largest bromine consumer, but heavily dependent on imports, with Israel and Jordan being the main sources. Customs data show that in 2025, China imported 35,000 tons from Israel and 14k tons from Jordan, accounting for about 64.7% of total imports.

Zhao Qianqian explained to the reporter that the global bromine industry is highly concentrated, with Israel, Jordan, and the U.S. accounting for over 60% of total capacity, with China’s capacity around 150k tons. Relying on the rich brine resources around the Dead Sea, which has high bromine content, Israel and Jordan’s capacity accounts for about 40% of the global total.

The reporter learned that the price increases in January and February 2026 are also related to overseas capacity. According to reports, the world’s largest producer, Israel Chemicals (ICL), has reduced bromine exports since 2025 and shifted focus to increasing downstream bromide product output.

Another major bromine importer in China was hit by an unexpected natural disaster. On January 21, heavy rains caused flooding in southern Jordan, disrupting supplies from Jordan Bromine Company (JBC), the second-largest bromine producer globally, with an annual capacity of 100k tons, accounting for 13-14% of global capacity.

Capacity to gradually recover

The reporter noted that although prices have surged, overall bromine capacity remains small, and its contribution to the revenue of listed companies is low.

According to the semi-annual report of Asia Potash International in 2025, the company’s associate, Asia Bromine Industry, has a bromine capacity of 25k tons per year, aiming to expand to 50k tons/year in 2025. However, its potassium chloride revenue was 14k yuan, accounting for 97.65%; brine revenue was 47.22 million yuan, accounting for 1.33%; other income was 36.31 million yuan, accounting for 1.02%.

Shandong Haihua, a leading domestic underground brine bromine producer, has a capacity of about 10k tons, with 2025 revenue of 150k yuan, and bromine revenue of only 200 million yuan, accounting for 4.23%. Lubao Chemical’s bromine capacity is about 5,000 tons, with a 2025 bromine output of 3,245 tons and sales of 3,117 tons. The company’s total revenue in 2025 was 100k yuan, with bromine revenue of 73.81 million yuan, but with a high gross profit margin of 52.91%.

A staff member from Lubao Chemical’s Secretary Office told the reporter that the high gross profit margin is partly due to relatively low production costs and partly due to high selling prices; the high prices are driven by steady downstream demand, and supply cannot quickly catch up. “Bromine downstream is mainly used in brominated flame retardants, pharmaceuticals, and other fields, with stable demand.”

The staff further explained that bromine production mainly relies on seawater bromine extraction, underground brine bromine extraction, and mineral rock bromine extraction. Seawater bromine extraction is affected by bromine concentration and can only be carried out in specific coastal areas like the Bohai Sea coast, while southern coastal areas generally lack conditions. Underground brine extraction is strictly controlled by the government and cannot be exploited indefinitely.

Regarding the recent price increase, the staff admitted that since March, the rise has been related to geopolitical conflicts in the Middle East affecting logistics and import restrictions, causing short-term domestic supply tightness. But seasonal factors also play a role: “In winter, bromine evaporation concentration is insufficient, and many production facilities are shut down, resulting in small output. Prices tend to rise during this period every year. After May Day, production gradually resumes, and prices may gradually fall.”

Zhao Qianqian also shared a similar view: “As temperatures rise, the bromine output from seawater in the industry will increase, further boosting operating rates. Domestic bromine supply will gradually increase, and some companies that suspended production for environmental inspections may resume work in April. Keep an eye on the production recovery situation.”

Additionally, Zhao Qianqian believes that in April, attention should be paid to downstream customer purchasing sentiment. The downward transmission of high-end prices still takes time; if transmission is smooth, it will be positive for the market. If not, prices may retreat from high levels. The exact turning point remains to be seen with ongoing monitoring.

Regarding the impact of bromine prices on downstream industries, Zhao Qianqian said that rising bromine prices increase costs for downstream producers, and some products follow bromine prices upward. However, high-end price transmission is difficult, and buyers tend to be cautious, purchasing only as needed based on order production conditions.
Editor: Li Weilai Chief Editor: Zhang Yuning