Business
Gulf Resources Updates Investors on Impact of the World & Chinese Economy on Business Operations
SHOUGUANG, China, Oct. 20, 2021 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq:GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine,
About this update from Gulf Resources, Inc.
[{"type":"text","content":"SHOUGUANG, China, Oct. 20, 2021 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq:GURE) (\"Gulf Resources\" or the \"Company\"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today updated investors on the impact of issues in the world and Chinese economy on its business operations. Bromine prices have risen substantially throughout the world and even more substantially in China. In the world market, shipping issues have disrupted delivery. As a result, China has been unable to import its normal share of bromine. With the shortage in supply and demand, prices of bromine have soared to the highest levels ever recorded. As illustrated by the chart below (source:sunsirs.com) bromine is currently priced at RMB 69,500 per tonne, an increase of 41% in the past few weeks and 148% higher than the end of the 3rd quarter in 2020. Bromine Prices In China PeriodPriceChanges As 2021 10/16 Q2-202029,333136.9% Q3-202028,017148.1% Q4-202032,087116.6% Q1-202134,493101.5% Q2-202145,95051.3% Q3-202149,30141.0% 2021/10/1669,500 Since the raw material price increases are lower than the bromine price increase, we believe this type of pricing should be good for our Fourth Quarter 2021 profitability. The Company has no idea how long the current shortages will last, however, we will keep shareholders informed of any changes we have seen. The world and Chinese economies have been impacted by supply chain issues in many industries including the energy industry. Shipping shortages have disrupted delivery of many products throughout the world. China has also been impacted by shortages of energy. For example, in some regions of China, the government have restricted electrical usage, including Shouguang City. And some businesses under construction have been restricted from electrical usage in Shouguang City. The supply chain issues as well as the electric restrictions have delayed the production and delivery of some equipment to the Company‘s new chemical factory. In addition, the Company’s new chemical factory has also been restricted from the electrical usage. This means the installation, timing of testing and beginning trial production at the chemical factory will be delayed. At this time, the Company is not in a position to determine the extent of the delays, but it will keep shareholders advised. WebsiteAs some in...