Price trend

According to the Commodity Analysis System of SunSirs, the price of bromine had ended its decline since early July and was rising all the way. At the beginning of July, the price of bromine was 18,000 RMB/ton. On August 9th, the price of bromine was 23,800 RMB/ton, an increase of 32.22%. As of August 9th, the mainstream quotation for bromine in Shandong was around 23,000-25,000 RMB/ton, while the mainstream quotation in the North China market was around 24,000-25,000 RMB/ton.

From the monthly K-bar chart of bromine, it can be seen that the price of bromine was showing a downward trend in the first half of 2023, and in July, the price experienced an increase of 12.22%.

Analysis review

Supply-side: With the arrival of the rainy season in July and August, seawater bromine manufacturers reduced production, bromine production was decreased, and supply was decreased by about one-third. Data showed that the operating rate of bromine enterprises was less than 70% as of August 9th, with a month on month decrease of about 9.8%. In early July, bromine manufacturers continued to explore an increase, but the transaction was average. Downstream flame retardants and pesticide intermediates were resistant to the constantly rising bromine, while bromine companies were reluctant to sell, engaging in a supply-demand game, and bromine prices continued to rise.

Downstream aspect: Downstream flame retardants, pesticide intermediates, and other industries recently started construction commonly, with average demand and a focus on wait-and-see. Tetrabromobisphenol A, the mainstream offer was around 26,000-26,500 RMB/ton, with a single negotiation for more actual orders. Terminal demand was average, and price driving force was insufficient. The supply and demand game showed that bromine companies' shipments were not as good as last week. Market transactions were still mainly focused on just in demand procurement, and the industry's mentality was lingering with the increase in quotation, with a wait-and-see sentiment.

Upstream product: Sulfur prices had risen, with an average market price of 713.33 RMB/ton in early July. On August 9th, the average market price was 933.33 RMB/ton, with a price increase of 30.84%. The inventory of manufacturers remained rational, with positive demand support from the end industry. The inventory of manufacturers was low, and the sulfur market had a strong upward trend. The supply and demand side was also positive, and it is expected that the short-term sulfur market will continue to be stronger.

Market outlook

Analysts from SunSirs believe that the price of bromine was improving recently, while the downstream flame retardant and intermediate industries of bromine had average support. Data showed that the pharmaceutical intermediate industry was expected to undergo maintenance for 15-20 days. The spot supply of bromine was decreased due to the rainy season, and the supply and demand of both parties were in a game. Downstream companies hoped to find low-priced options, while bromine companies hoped for high prices. Overall, it is expected that the market will mainly slowly move up, depending on downstream market demand.

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