Surged over 75%! Risk of supply disruption, this chemical product price skyrockets straight up

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The price of bromine has risen over 52% since March, with a cumulative increase of over 75% this year.

Bromine prices have increased over 75% this year.

Since March, the bromine market has experienced a rapid price surge. According to data from Business Society, on March 26, the bromine price was 63,100 yuan/ton, which is a 52.78% increase compared to the beginning of the month, with a cumulative year-to-date increase of over 75%.

Image source: Business Society

The continuous rise in bromine prices is mainly influenced by multiple factors, including domestic supply contraction, international import obstacles, cost transmission, and demand support.

As a widely used chemical product in downstream applications, bromine is primarily produced from seawater and underground brine. Domestic bromine production capacity is highly concentrated in the Bohai Rim region, with Shandong province accounting for over 80%. However, due to the depletion of brine resources, capacity utilization has long been inadequate. The brine reserves in Shandong’s Laizhou Bay have decreased by 70% from peak levels, with bromine production dropping from 135,500 tons in 2014 to 63,500 tons in 2025, a decline of over 53%.

At the same time, environmental policies and seasonal controls have further contracted supply. Regions such as Weifang in Shandong have implemented mandatory winter production halts, leading to a complete shutdown or reduction in production among bromine manufacturing companies in the area. Although production is gradually resuming after the halt period, the bromine content in the brine has not returned to normal levels, resulting in consistently low production and maintaining overall low inventory levels for companies.

With insufficient domestic production, China’s dependence on bromine imports has continued to rise, reaching 66% by 2025, an increase of 12 percentage points compared to 2024. Among these imports, 46% come from Israel, and 19% from Jordan, indicating a high concentration of import sources.

Since early 2026, disruptions in international bromine supply have occurred, as escalating conflicts between the U.S. and Iran have posed safety risks to factories of the Israeli chemical group (ICL). As one of the world’s largest bromine producers, ICL accounts for 33% of global production capacity, directly affecting the global supply landscape. Additionally, blockade measures in the Strait of Hormuz further threaten global bromine transportation arteries, exacerbating market concerns about supply shortages.

According to Galaxy Securities analysis, the escalation of geopolitical conflicts in the Middle East does not rule out the possibility of some bromine production facilities in Israel temporarily reducing output or halting production, potentially leading to supply gaps for bromine. On the other hand, logistics costs for bromine exports from Israel and Jordan are expected to rise significantly, and there is considerable uncertainty regarding bromine transportation cycles, which may raise the price center for bromine.

The core raw materials for bromine production include brine, liquid chlorine, and sulfur, with approximately 0.5 tons of sulfur required for each ton of bromine produced. Since the second half of 2024, sulfur prices have continued to rise due to demand from phosphate fertilizers and new energy sectors. As of March 23, 2026, the market average price reached 4,966.67 yuan/ton, a 27.02% increase from the beginning of the month and a 104.03% increase compared to the same period last year, directly pushing up bromine production costs.

From the perspective of downstream demand, traditional applications of bromine are primarily in flame retardants, accounting for 36% of total domestic usage. With the rapid development of industries such as new energy vehicles and electronic devices, fire safety standards have continuously improved, with brominated flame retardants expanding their application scenarios in power battery electrolytes, PCB boards, and copper-clad laminates. From 2019 to 2023, the average annual compound growth rate of copper-clad laminate production in China reached 10.5%, directly driving the demand for bromine.

Regarding production companies, according to public data compiled by Securities Times·Data Treasure, Yahua International has a bromine production capacity of 25,000 tons/year, Shandong Haihua has a capacity of over 10,000 tons/year, Sulai Co., Ltd. has a bromine recycling capacity of 15,000 tons/year, Luban Chemical has a capacity of 5,000 tons/year, and Binhua Co., Ltd. disclosed a bromine production of 4,036 tons in 2024, while Luyin Investment reported a bromine production of 2,667.44 tons for 2024.

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Editor: Wei Zirong