Shipping costs are rising! The price of bromine has increased by over 30k yuan per ton, industry insiders say: the price hike lacks sustainability.

Summer Times reporter He Yihua, Li Weilai, Beijing report

The shipping crisis in the Strait of Hormuz has not only led to a sharp jump in international crude oil prices, but also caused large fluctuations in the prices of certain very niche chemical products.

Since the beginning of this year, bromine prices have been steadily rising. After entering March, the bromine price trend effectively “took off.” According to data from the Business Society, on March 8 bromine was quoted at 39,700 yuan per ton. By March 22, the price had surged to 51,000 yuan per ton. On April 3, the bromine quote had changed to 70,200 yuan per ton.

The capital markets also would not miss this round of gains. Shares tied to bromine were repeatedly pushed higher. As of the close on April 3, SuLi Co., Ltd. (603585.SH) hit 3 daily limit-ups in 6 trading days. Shandong Haichang (000822.SZ), Lubei Chemical (600727.SH), and others also led with higher gains.

Reporters noted that, as a niche chemical product, bromine has relatively small production capacity and is not a main business of listed companies. When bromine prices rise, can it also drive growth in related companies’ performance?

A staff member from the board secretary’s office of Binhai Investment (601678.SH) told The Huaxia Times that the company’s bromine production capacity is more than 5,000 tons, and bromine revenue accounts for a low share in total revenue. However, when the unit price fluctuates significantly, it can still have some impact on the company’s performance. Another listed company staff member said that for smaller companies, adding a profit of a few tens of millions of yuan is not bad, but for larger companies, the effect on performance improvement is limited.

Overseas supply disrupted

From January to March 2026, domestic brine-bromine production enterprises in China suspended or limited production. Sea-water bromine enterprises were affected by unusually low temperatures, so operating load stayed at a low level. Production enterprises’ inventory pressure was not big, while holders were reluctant to sell at low prices, causing market prices to rise steadily.

According to Business Society data, on January 3, 2026, the bromine quote was 35,000 yuan per ton. By January 20, the quote had become 38,600 yuan per ton. On February 6, the bromine quote rose to 41,600 yuan per ton. After that, bromine quotes became fairly stable. On February 23, the quote was still 41,600 yuan per ton, and on March 4 it fell back to 39,700 yuan per ton. After that, bromine prices climbed steadily, reaching 70,200 yuan per ton as of April 3.

Zhuochuang Information bromine analyst Zhao Qianqian told The Huaxia Times that since March, the main driver of the bromine market price increase has been supply-side factors. In China, bromine producers have gradually increased output. Influenced by the geopolitical situation in the Middle East, foreign bromine supply has decreased. Shipping cycles have been extended, and imported supply cannot be provided in a timely manner. Domestic total supply has declined. Sellers have held onto their inventory and been reluctant to sell, and bullish sentiment about quotes exploring higher prices has remained strong, pushing market prices strongly upward.

Galaxy Securities said that as geopolitical conflict in the Middle East escalates, on the one hand, it is possible that some bromine production installations in Israel may reduce load or even shut down temporarily, leading to a supply gap for bromine. On the other hand, logistics costs for Israel and Jordan bromine exports are expected to rise significantly, and there is also considerable uncertainty regarding the bromine transportation cycle. The bromine price center is therefore expected to move up accordingly.

It is understood that Israel and Jordan are the two largest bromine-producing countries globally. According to data from Longzhong Information, Israel and Jordan account for 33% and 19% of global bromine production capacity, respectively. China is the world’s largest bromine consumption country, but its dependence on bromine imports is high. Israel and Jordan are China’s two most important bromine import sources. According to General Administration of Customs data, in 2025 China imported 35,000 and 14k tons of bromine from Israel and Jordan, respectively, totaling about 64.7% of the country’s total bromine import volume.

Zhao Qianqian explained to reporters that the global bromine industry has relatively high concentration. Among them, Israel, Jordan, and the United States together account for more than 60% of global total production capacity, while China’s capacity is about 150k tons. Israel and Jordan rely on the advantage of abundant brine resources around the Dead Sea. The Dead Sea brine has a high bromine content, and their production capacity accounts for about 40% of global total production capacity.

Reporters learned that the bromine price increases in January and February 2026 are also related to overseas production capacity. According to relevant reports, since 2025 the world’s largest producer Israel Chemicals (ICL) has reduced bromine exports and instead increased its output of downstream bromine products.

Another major bromine import country in China also faced unexpected natural disasters. On January 21, southern Jordan experienced heavy rain that triggered flooding, leading to a supply disruption at Jorda*n Bromine Industries Company (JBC), the world’s second-largest bromine production base. The company’s annual output is 100k tons of bromine, accounting for 13%—14% of global total capacity.

Capacity to gradually recover

Reporters noted that although prices surged sharply, overall bromine production capacity is relatively small, and bromine revenue accounts for a low share among listed companies.

Anji Potash International’s 2025 interim report shows that an associate company, Asian Bromine Industry, which the firm has an equity stake in, has a bromine capacity of 25k tons per year. In 2025, it aims to further expand to 50k tons per year. However, its potassium chloride revenue was 14k yuan, accounting for 97.65%; brine revenue was 47.22 million yuan, accounting for 1.33%; other revenue was 36.31 million yuan, accounting for 1.02%.

Shandong Haichang, as China’s leading company in underground brine extraction and bromine recovery, has capacity of around 10k tons. In 2025, it recorded operating revenue of 150k yuan, while bromine revenue was only 200.7 million yuan, accounting for 4.23%. Bromine capacity at Lubei Chemical is around 5,000 tons. In 2025, its bromine output was 3,245 tons and sales volume was 3,117 tons. The company’s total operating revenue in 2025 was 100k yuan, and bromine revenue was 73.81 million yuan. However, its gross margin is relatively high, reaching 52.91%.

A staff member from the board secretary’s office of Lubei Chemical told reporters that, on the one hand, the high gross margin is due to relatively low production costs; on the other hand, it is due to higher selling prices. The high prices come from stable downstream demand, and supply-side is difficult to quickly catch up. “The downstream of bromine is mainly used in brominated flame retardants, pharmaceuticals, and other areas, so demand is stable.”

The staff member further said that bromine production is mainly based on extracting bromine from seawater, from underground brine, and from ore and rock. Seawater bromine extraction is affected by bromine concentration, so it can only be carried out in specific coastal areas such as along the Bohai Sea coast; many southern coastal areas do not have suitable conditions. Also, underground brine extraction is subject to national strict controls, so it cannot be carried out without limits.

Regarding the recent bromine price increase, the staff member acknowledged that since March, increased restrictions on logistics and transportation due to conflict in the Middle East, and impeded imports leading to tight short-term supply domestically, are related factors. But there are also seasonal factors: “In winter, the evaporation concentration of bromine is insufficient, so many plants are in shutdown status, and output is low. Each year during this period, prices will increase to some extent. After ‘May Day,’ output gradually recovers, and prices may gradually fall.”

Zhao Qianqian also offered a similar view. “As temperatures rise, production of seawater bromine within the plants increases, which further improves industry operating rates. Domestic bromine supply gradually increases. For companies that were shut down due to environmental inspections earlier, they may resume operations one after another in April. Pay more attention to production output after resumption.”

In addition, Zhao Qianqian believes that in April, it is necessary to continuously monitor downstream users’ mentality toward receiving goods. Transmitting high-end prices downward still takes time. If the transmission is smooth, the market benefits from a positive driver; if the transmission is not smooth, the market price may rebound from the high level. However, when exactly a specific turning point will appear still requires ongoing attention.

As for how bromine prices affect downstream businesses, Zhao Qianqian said that higher bromine prices increase cost pressure for downstream production enterprises. Some products follow the increase in bromine prices. However, it is difficult for high-end price increases to transmit downward. Buyers are mostly cautious and observing, and they purchase mainly based on “just-needed” demand according to order production conditions.

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