[Bromine Monthly Review]: Bromine Prices Decline Again (June 2026)

[Bromine Monthly Review]: Bromine Prices Decline Again (June 2026)

1. Market Focus This Month

• Supply Side: 69.68% of production capacity was in operation this month. Domestic bromine industry operating rates fluctuated at high levels during the month, with stable replenishment of spot supply in the market, stable arrivals of imported bromine, and gradually evident inventory pressure among some holders, leading to increased willingness to sell.

• Demand Side: Downstream demand remained weak, with sluggish inquiries. Transactions were mainly driven by scattered rigid-demand restocking. Downstream buyers routinely pressed for lower prices, bearish sentiment prevailed, and trading enthusiasm was generally low.

• Overall: In June, the bromine market saw continued tug-of-war between supply and demand, a cold trading atmosphere, and a downward price trend.

2. Market Analysis This Month

Table 1 Domestic Regional Price Change Comparison Table (RMB/Ton)

In June, domestic bromine market supply steadily increased while demand remained persistently weak. Trading was sluggish, and the transaction center of gravity continued to decline.

From the supply side, favorable weather conditions throughout the month supported bromine production, with industry operating rates fluctuating at high levels. Spot circulation in the market increased significantly compared with May, and a loose supply situation gradually emerged. Holders mainly sold at market prices. As overall social inventories gradually accumulated, supply pressure continued to increase, and some enterprises grew more willing to sell. It was difficult to maintain prices in the short term, and actual bargaining space continued to expand. Although high sulfur prices at the raw material end created significant cost pressure on bromine, the support for prices was limited under selling pressure. Transaction prices declined all the way, making it difficult to curb the weak market trend.

On the demand side, the overall weak and sluggish trend continued. The decline in raw material prices did not benefit downstream procurement. Flame retardant, pharmaceutical, and pesticide intermediate enterprises saw weak order follow-up. Terminal finished product markets showed prominent off-season characteristics. Downstream buyers continued their cautious procurement strategy of rigid-demand restocking, continuously lowering their expected procurement prices. Market trading was light, and as bromine prices continued to decline, bearish sentiment spread in the downstream market. Procurement enthusiasm remained low, with most buyers adopting a cautious wait-and-see attitude, creating obvious resistance to stabilizing bromine prices.

Overall, in June, the bromine industry operated at high rates, market supply was ample, while downstream demand remained persistently weak with insufficient rigid-demand follow-up. The supply-demand imbalance continued to intensify, market tug-of-war leaned toward weakness, prices fluctuated and declined throughout the month, and there were no obvious signs of stabilization by month-end. The weak trend continued, with current mainstream transaction prices in the Shandong market operating in the range of 27,000–28,000 RMB/ton.

In May 2026, China's bromine imports totaled 3,624 tons, down 41.86% month-on-month (MoM), with an average import price of $4,644/ton, up 4.55% MoM. Israel was the largest source, with 1,226 tons at an average import price of $4,474/ton.

In May 2026, China's imports of sodium bromide and potassium bromide totaled 6,136 tons, up 1.02% MoM, with an average import price of $3,021/ton, up 0.83% MoM. Laos was the largest source, with 4,000 tons at an average price of $3,831/ton.

3. Focus for the Next Period:

4. July Market Outlook

On the supply side, the month falls within the traditional peak production season for seawater bromine extraction. Domestic facilities will operate at high loads, with industry operating rates, capacity utilization rates, and output fluctuating at high levels. Spot supply in the market will remain abundant, and the overall supply will be loose. Summer rainfall fluctuations may cause phased disruptions to output release, but will not change the overall loose supply pattern. Meanwhile, high sulfur prices at the raw material end will form a rigid cost floor, limiting the downside space for bromine prices. Manufacturers will continue their price-supporting and reluctant-to-sell mentality.

On the demand side, downstream industries such as flame retardants, pharmaceuticals, and pesticide intermediates remain in the traditional off-season. Terminal finished product orders show weak signs of recovery. Enterprise facilities maintain low-load operations, consistently adhering to low inventory management strategies. Only small amounts of rigid-demand restocking at low prices exist. The procurement side shows strong cautious wait-and-see sentiment, with obvious resistance to high-priced supply. Difficulty in achieving volume transactions is high, and overall market trading is flat.

Currently, 80% of market participants are bearish, 20% are neutral, and there is no bullish sentiment. Under continued bull-bear tug-of-war, bromine prices in July will be prone to decline and resistant to rise. Although the risk of a deep decline has somewhat receded, rebound momentum is clearly insufficient. The overall trend will most likely continue to operate in a low-level weak and narrow fluctuation pattern, with spot negotiation center of gravity expected to maintain low-level fluctuations.

5. Impact of Declining Bromine Prices on the Flame Retardant Market

As the core raw material for brominated flame retardants, bromine price trends directly affect the cost and pricing of the flame retardant industry. In June, bromine prices continued to decline (mainstream transactions in the Shandong market fell to the 27,000–28,000 RMB/ton range), exerting multiple impacts on the downstream flame retardant market:

Cost-side pressure has eased somewhat, but transmission involves time lags. Bromine prices have fallen sharply from their year-to-date high (which briefly exceeded 60,000 RMB/ton in April), and production costs for brominated flame retardants have declined accordingly. Some enterprises have already begun lowering product quotations—in June, Shandong Haiwang Chemical's tetrabromobisphenol A quotation dropped from 34,000 RMB/ton at the beginning of the month to 31,000 RMB/ton, and decabromodiphenyl ethane fell from 73,000 RMB/ton to 60,000 RMB/ton. Weifang Sutong Chemical's tetrabromobisphenol A quotation has also dropped to 28,000 RMB/ton. However, the cost decline has not effectively stimulated downstream procurement willingness. Flame retardant enterprises generally face the awkward situation of "raw materials fell, but orders are even fewer"—terminal demand remains persistently weak, buyers are heavily bearish, and only scattered rigid-demand restocking is maintained.

Weak demand is a more fundamental constraint. The flame retardant industry is currently in the traditional off-season. Downstream industries such as modified plastics, cables and wires, and electronics and electrical appliances are operating at low rates, with insufficient terminal order volume. Even as both bromine and brominated flame retardant prices have declined, downstream buyers still adopt a "buy on rises, not on falls" mentality and wait on the sidelines, with no concentrated restocking behavior observed. Flame retardant enterprise inventory consumption is slow, and some product prices have approached cost lines, with profit margins being significantly compressed.

The halogen-free substitution process may accelerate somewhat. The dramatic fluctuations in bromine prices since 2026 (with year-to-date peak gains exceeding 75%) have prompted many downstream enterprises to re-examine their reliance on brominated flame retardants. The EU has included the novel brominated flame retardant TBPH in a proposal for Annex A of the Stockholm Convention. The halogen-free flame retardant market is expected to reach $6.94 billion in 2026, with a compound annual growth rate (CAGR) of 10.1%. Raw material price instability combined with tightening environmental regulations may further push some terminal users to switch to phosphorus-nitrogen and inorganic halogen-free flame retardant solutions.

Overall, bromine prices will most likely continue low-level fluctuations in July, with weak cost support for brominated flame retardants and further downside space for prices. However, without substantive recovery on the demand side, the "weak volume and price" pattern in the flame retardant market will be difficult to reverse in the short term. For downstream buyers, the current low price levels may allow for moderate stockpiling, but vigilance is needed against inventory accumulation risks brought by persistently weak demand.