Gulf Resources Sees Continuing Strength in Its Bromine Business
March 06 2017 - 8:30AM
Gulf Resources, Inc. (Nasdaq:GURE) ("Gulf Resources" or the
"Company"), a leading manufacturer of bromine, crude salt and
specialty chemical products in China, today announced that
continuing strength in the price of bromine should lead to
significantly improved sales and earnings in bromine business,
especially in the first half of 2017.
Over the past two years, the price of bromine in
China has shown continuing strength.
Price of Bromine (USD)
per tonne |
|
|
|
|
2014 |
|
|
|
$2,886 |
2015 |
|
|
|
$3,162 |
2016 Q1 |
|
|
|
$3,841 |
2016 Q2 |
|
|
|
$4,006 |
2016 Q3 |
|
|
|
$3,541 |
2017 Beginning of
March |
|
|
|
$4,142 |
Between 2014 and 2015, the price of bromine
increased 9.6%. In the first 9 months of 2016, the price increased
by 21.4% from the same period of 2015 and 31.2% for the same period
of 2014.
Since the end of the third quarter of 2016, the
price of bromine has continued to increase. At the beginning of
March 2017, it was $4,142. This represents an increase of 17% from
the price in the third quarter of 2016. It also represents an
increase of 43.5% from the average price in 2014.
There is no guarantee that pricing will remain
at its current level. However, international pricing is very
strong. Domestically, supply is being constrained by restrictions
in production, limited licensing of mines and factories, as well as
the degradation of some domestic facilities. As a result, we expect
the pricing of bromine will continue to remain strong.
At these levels, profits in bromine business
could have benefit to our bottom line.
We will provide our guidance when we release our
results later this month. However, at the present time, in the
first half of 2017, for which we have good visibility, we expect
increases in sales and earnings for bromine business.
About Gulf Resources, Inc.Gulf Resources, Inc.
operates through four wholly-owned subsidiaries, Shouguang City
Haoyuan Chemical Company Limited ("SCHC"), Shouguang Yuxin Chemical
Industry Co., Limited ("SYCI"), Shouguang City Rongyuan Chemical
Co, Limited (“ SCRC”) and Daying County Haoyuan Chemical Company
Limited (“DCHC”). The company believes that it is one of the
largest producers of bromine in China. Elemental Bromine is used to
manufacture a wide variety of compounds utilized in industry and
agriculture. Through SYCI, the company manufactures chemical
products utilized in a variety of applications, including oil and
gas field explorations and papermaking chemical agents. SCRC is a
leading manufacturer of materials for human and animal antibiotics
in China and other parts of Asia. DCHC was established to further
explore and develop natural gas and brine resources (including
bromine and crude salt) in China. For more information, visit
www.gulfresourcesinc.com.
Forward-Looking Statements
Certain statements in this news release contain forward-looking
information about Gulf Resources and its subsidiaries business and
products within the meaning of Rule 175 under the Securities Act of
1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and
are subject to the safe harbor created by those rules. The actual
results may differ materially depending on a number of risk factors
including, but not limited to, the general economic and business
conditions in the PRC, future product development and production
capabilities, shipments to end customers, market acceptance of new
and existing products, additional competition from existing and new
competitors for bromine and other oilfield and power production
chemicals, changes in technology, the ability to make future
bromine asset purchases, and various other factors beyond its
control. All forward-looking statements are expressly qualified in
their entirety by this Cautionary Statement and the risks factors
detailed in the company's reports filed with the Securities and
Exchange Commission. Gulf Resources undertakes no duty to revise or
update any forward-looking statements to reflect events or
circumstances after the date of this release.
CONTACT: Gulf Resources, Inc.
Web: http://www.gulfresourcesinc.com
Director of Investor Relations
Helen Xu (Haiyan Xu)
beishengrong@vip.163.com
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