1-Bromobutane

1-Bromobutane: Recent Market Intelligence Report

I. Price Dynamics
- **Benchmark Price**: As of July 6, 2026, the benchmark price for 1-bromobutane published by Business Network is RMB 27,933.33 per metric ton, unchanged from the beginning of the month and positioned at the mid-to-lower range within the annual statistics.
- **Price Range**: The intra-annual price fluctuation spanned RMB 27,825.00 to RMB 28,200.00 per metric ton, with an average price of RMB 28,016.89 per metric ton.
- **Recent Trend**: Since May 2026, the price of 1-bromobutane has remained stable at RMB 27,933.33 per metric ton without notable volatility.

II. Supply-Demand Landscape
- **Supply Side**:
- As of Q1 2025, China’s nominal annual production capacity for 1-bromobutane stood at approximately 85,000 metric tons, with actual effective capacity utilization maintained at around 72%, equivalent to roughly 61,200 metric tons.
- The East China region remains the dominant production hub, accounting for 65% of total national capacity; Shandong Province alone contributes 38%.
- Constrained by environmental regulations and land resource limitations, new capacity additions in East China are limited; industry expansion is shifting focus toward Central and Southwest China.
- **Demand Side**:
- China’s apparent consumption of 1-bromobutane in 2025 is projected to reach 58,000 metric tons, representing a year-on-year growth of ~3.2%, primarily driven by pharmaceuticals and agrochemicals.
- Pharmaceutical applications account for ~65% of demand—mainly for synthesizing cephalosporin antibiotics and antihypertensive drugs; agrochemical applications constitute ~35%—primarily for high-efficiency, low-toxicity herbicides.

III. Cost Structure
- **Direct Material Costs**: Represent 75–80% of total production cost, with bromine as the core raw material; its price volatility significantly impacts overall cost. In 2025, the average ex-factory price of bromine rose to RMB 24,500 per metric ton, up 12.3% year-on-year.
- **Energy Costs**: Account for 10–12% of total cost; electricity costs increased ~5.8% due to tiered electricity pricing policies.
- **Environmental Compliance Costs**: Have risen to 8–10% of total cost, now constituting a fixed expense that accelerates the phase-out of outdated capacity.

IV. Industry Developments
- **Digital Transformation**:
- Some enterprises have adopted advanced process control (APC) systems integrated with distributed control systems (DCS), raising reaction conversion rates to over 92% and reducing bromine consumption to below 0.68 metric tons per metric ton of product.
- AI-powered predictive maintenance systems have cut unplanned equipment downtime by 40%, lifting overall equipment effectiveness (OEE) to 82%.
- **Capacity Expansion Outlook**:
- Based on Monte Carlo simulation, nominal capacity may reach up to 145,000 metric tons in 2026; however, constrained by raw material supply, actual effective output is expected to be ~128,000 metric tons.
- Under the base-case scenario, the industry maintains a moderate annual growth rate of 5.2%; total capacity is projected to reach 162,000 metric tons by 2030, with effective capacity utilization sustained at 78%.

V. Market Quotation Updates
- **Enterprise Quotations**:
- Yancheng Longsheng Chemical Co., Ltd.: Purity ≥99%, packaging: 250 kg/drum, price upon inquiry.
- Fuda Biopharmaceutical Technology (Heze) Co., Ltd.: Purity 99.0%, packaging: 250 kg/drum, industrial grade, price upon inquiry.
- Shandong Qiangsen Chemical Co., Ltd.: Purity 99.9%, drum-packed, quoted price range: RMB 28–30 per kilogram.

Analysis & Assessment
1. **Price Stability**: Recent price stability is underpinned by a tight supply-demand equilibrium. Inventory turnover days remain steady at 10–15 days, indicating minimal inventory pressure across the industry.
2. **Cost-Driven Support**: Elevated bromine prices and rising environmental compliance costs provide strong floor support for 1-bromobutane pricing; however, downstream industries’ ability to absorb higher raw material costs remains limited, squeezing producers’ profit margins.
3. **Regional Shift**: Capacity relocation toward Central and Southwest China will gradually reshape the supply landscape; nonetheless, East China will retain market dominance in the near term.
4. **Digital Transformation**: Technological upgrades enhance production efficiency and reduce unit costs; enterprises with technological advantages are poised to expand their market share.

Outlook
1. **Short Term (1–3 months)**: Prices are expected to remain stable, supported by continued supply-demand tightness and robust cost underpinning.
2. **Medium Term (6–12 months)**: Should bromine prices rise further or environmental regulations tighten, modest upward price adjustments may occur; if pharmaceutical demand growth exceeds expectations, price elasticity could increase.
3. **Long Term (1–3 years)**: Industry capacity expansion faces raw material supply constraints, limiting growth in effective output; thus, the price center is likely to trend gradually upward. Accelerated digital transformation will expedite the exit of inefficient producers, further increasing market concentration.