Most of Gulf Resources business is related to bromine. We mine and produce bromine. Crude Salt is a bi-product of bromine mining. The chemicals we have produced are related to bromine. Because many of our investors may not be experts in bromine, we will utilize this section of our website to provide updated communications on bromine and its markets.

Pricing

Over the past three months, bromine prices have increased by almost 10%. They are now close to their historical high of RMB 34,970 registered in May 2019. The lowest price in the past 6 years was RMB 16,800 registered in Oct. 2014.

The International Bromine Market

Bromine and crude salt are essential for several industries and are used to manufacture flame-retardants, pharmaceuticals, pesticides, water purification compounds, dyes, sanitizers, oil and natural gas drilling, and other products.

The following are excerpts from reports written by leading market research organizations.

According to Markets and Markets, a research institution in India,

· “The global bromine market size is projected to grow from USD 3.2 billion in 2020 to USD 4.1 billion by 2025, at a CAGR of 5.0% from 2020 to 2025. The market growth is driven by the increasing demand for bromine in flame retardants, mercury emission control, water treatment, and oil & gas drilling.”

Markets and Markets identifies increasing demand for flame retardants due to stringent fire safety standards as a major growth opportunity.

· “Globally, properties worth billions of dollars are lost due to fire-related accidents every year. Insurance companies have to utilize a major share of their revenue in settling claims on assets, infrastructure, and human lives lost in fire accidents. This makes anti-inflammatory agents or flame retardants crucial chemicals since they minimize the fire-related risks for almost every manufactured commodity. Flame retardants prevent fire by delaying the combustion process by forming a layer of free radicals. They either release carbon dioxide or free radicals that combine with oxygen molecules, thus arresting the oxidation process.”

· “manufacturers of automobiles, electronics, consumer goods, and textiles need to meet the fire safety regulations of the respective countries. These safety standards and regulations have, therefore, increased the demand for flame retardants globally.”

Markets and Markets identify the Asia Pacific region as the largest consumer of bromine and China as the largest growth market.

· “By region, Asia Pacific is estimated to be the largest market for bromine in 2020. The demand for bromine in this region is mainly propelled by its increasing use in China, Japan, and India. China is expected to be the dominant and fastest-growing market for bromine in the Asia Pacific region…China, which had banned the export of bromine and its related compounds, is focusing only on imports to meet its domestic requirements.”

According to Markets and Markets, the leading companies in the bromine industry are:

· Israel Chemicals Limited (Israel),

· Albemarle Corporation (US),

· LANXESS Corporation (Germany),

· Tosoh Corporation (Japan),

· Tata Chemicals Limited (India),

· Gulf Resources Inc. (China),

· TETRA Technologies, Inc. (US),

Mordor Intelligence, another International research firm, reports that

• “China is the fourth-largest producer of bromine, after Israel, Jordan, and the United States. Flame retardants are the largest application of bromine in China, followed by clear brine fluids and water treatment.”
• “With the growing electronics and construction industry, the demand for the bromine-based flame-retardant application is expected to increase.”
• “The enormous demand for organobromines, as a result of the growing need for zinc-bromine flow batteries and consumption of clear brine fluids in China, is driving the bromine market.”
• “China is one of the major markets for zinc-bromine flow batteries, owing to the increasing electric vehicles market in the region.”
• “Clear brines are used as completion and drilling fluids by the oil drilling industry. China is the largest crude oil producer in the Asia-Pacific region. In 2019, the Chinese government directed Chinese state-owned oil and gas companies to increase the domestic production and reserves to improve the domestic energy security of the country.”
• “China National Offshore Oil Corporation (CNOOC) is signing strategic cooperation agreements, which are a new and flexible method of jointly developing oil and gas fields. This is likely to drive the growth of the oil and gas industry, which, in turn, is likely to boost the demand for clear brine fluids.”
• “Therefore, the aforementioned factors are expected to increase the demand for bromine in China over the forecast period.”

According to Mordor, demand for bromine in China is expected to grow faster than demand in other countries.

According to Market Research Future

• “Bromine is widely used catalyst and reactant for production of a variety of products such as biocides, agrochemicals, pharmaceuticals, disinfectants, dyes, flame retardants, and photographic chemicals among others. Dead Sea is considered to have the major source of bromine, whereas the U.S. and Israel are the major producers in the world.  The growing demand for bromine and its derivatives from the end-user industries such as aerospace, automobiles, oil & gas, textile, pharmaceuticals, and cosmetics among others is substantially driving the growth of the market.  However, the threat of substitution along with the environmental concerns relating to the usage of bromine is the major restraints in the growth of the market.”
• “Among the various derivative segments in the bromine market, the organobromides are expected to be the leading segment in the market and is anticipated to show a considerable CAGR during the forecast years. The growing use of organobromides as a flame retardant in various end-use industries such as electronics, automotive, oil, and gas is expected to contribute to the growth of the segment. Moreover, the strict fire safety regulations throughout the globe are anticipated to boost the segment growth further. Additionally, growing demand for organobromides as biocides, especially from the agrarian economies, is another factor driving the growth of the segment.” Moreover, the oil and gas drilling fluid is another major segment of the global market. The growing oil and gas related activities are expected to surge the growth of the segment. Bromine is extensively used as clear brines in oil and gas drilling process. “
• “The global bromine market is segmented into five regions: Latin America, the Middle East & Africa, Asia Pacific, North America, and Europe.  Among these, Asia is expected to be the fastest growing region at an encouraging CAGR. … The propelling agriculture and the automobile industry in countries such as India and China, is increasing the demand for bromine. Moreover, the growing demand from the oil and gas industry is also adding to the growth of the market in this region owing to its extensive use as drilling fluid.”

Key Players

Some of the prominent players operating in the global bromine market are

· Israel Chemicals Limited (Israel),

· Albemarle Corporation (U.S.),

· Chemtura Corporation (U.S.),

· Tosoh Corporation (Japan),

· Tata Chemicals Ltd (India),

· Gulf Resources Inc. (China),

· TETRA Technologies, Inc. (U.S.),

· Hindustan Salts Limited (India), Honeywell International Inc. (U.S.),

· Perekop bromine (Republic of Crimea).

BSEF, the International Bromine Council is a Brussels-based trade association that represents the International bromine industry. Reports:

· ‘Bromine-based ingredients are used in many over-the-counter and prescription drugs, as well as a treatment for many differing health problems”.

· “Bromide ions have the ability to decrease the sensitivity of the central nervous system which makes them effective for use as sedatives, anti-epileptics, and tranquillizers. This aids patients who, for example suffer from seizures, or to babies who have colic, and is even used in expectorants, for cough medicine….bromine based medicine is also supplied to those suffering from heart problems, thyroid hyperactivity, and hysteria. Other far more diverse uses include its treatment for pneumonia and cocaine addiction1.”