The price of bromine has surged by more than 52% since March, with a cumulative increase exceeding 75% since the beginning of the year. Since the start of March, the bromine market has experienced a rapid price surge. Data from a market intelligence platform shows that on March 26, the quoted price for bromine reached 63,100 yuan per ton, representing a 52.78% increase from the beginning of the month and a year-to-date rise of over 75%.

The continuous price increase for bromine is primarily influenced by multiple factors, including shrinking domestic supply, obstacles to international imports, cost pass-through, and demand support. As a widely used chemical product, bromine is mainly produced from seawater and underground brine. Domestic bromine production capacity is highly concentrated in the Bohai Rim region, with Shandong province alone accounting for over 80% of the total. However, due to the depletion of brine resources, capacity utilization has remained low over the long term. The brine reserves in Laizhou Bay, Shandong, have decreased by 70% from their peak, leading to a sharp decline in bromine output from 135,500 tons in 2014 to 63,500 tons in 2025, a drop of more than 53%.

Simultaneously, environmental policies and seasonal controls have further constrained supply. Major production areas like Weifang in Shandong implemented mandatory winter production stoppages and restrictions, resulting in complete shutdowns or reduced output for bromine producers in the region. Although production gradually resumed after the restriction period, the bromine content in the brine has not returned to normal levels, keeping output relatively low and overall enterprise inventories at a reduced level.

Amid insufficient domestic production, China's reliance on bromine imports has continued to climb, reaching 66% in 2025, an increase of 12 percentage points from 2024. Among these imports, 46% originated from Israel and 19% from Jordan, indicating a high concentration of import sources.

Since the beginning of 2026, the international supply of bromine has faced successive disruptions. The escalation of conflict involving the US, Israel, and Iran has posed security risks to facilities operated by ICL Group, one of the world's largest bromine producers, whose capacity accounts for 33% of the global total. This situation directly impacts the global supply landscape. Furthermore, blockade measures in the Strait of Hormuz threaten a major artery for global bromine transportation, intensifying market concerns about potential supply shortages.

Analysis from Galaxy Securities suggests that escalating geopolitical conflicts in the Middle East could lead to temporary reductions or shutdowns of some bromine production facilities in Israel, potentially creating a supply gap. Additionally, logistics costs for bromine exports from Israel and Jordan are expected to rise significantly, and transportation timelines face considerable uncertainty, which may elevate the price floor for bromine.

Key raw materials for bromine production include brine, liquid chlorine, and sulfur. Producing one ton of bromine requires approximately 0.5 tons of sulfur. Since the second half of 2024, sulfur prices have been climbing steadily, driven by demand from fertilizers and new energy sectors. As of March 23, 2026, the average market price reached 4,966.67 yuan per ton, up 27.02% from the beginning of the month and 104.03% higher than the same period last year, directly increasing bromine production costs.

In terms of downstream demand, bromine's traditional applications are primarily in flame retardants, which account for 36% of total domestic usage. With the rapid development of industries such as new energy vehicles and electronic devices, along with continuously improving fire safety standards, brominated flame retardants are finding expanding applications in areas like 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 increased demand for bromine.

Regarding production companies, publicly available information indicates that Asia-Potash International has an annual bromine production capacity of 25,000 tons. Shandong Haihua possesses a capacity exceeding 10,000 tons per year. Suli Co., Ltd. has an annual capacity for recycled bromine of 15,000 tons. Lubei Chemical Group has a capacity of 5,000 tons per year. Binzhou Chemical reported a bromine output of 4,036 tons in 2024, while Luyin Investment reported producing 2,667.44 tons of bromine in 2024.