Gulf Resources recently received a notice from the Shouguang Municipal Government stating that all of the company's bromine and raw salt facilities will be temporarily closed from December 25, 2023 to February 20, 2024.
Zhitong Finance App learned that Gulf Resources (GURE.US) recently received a notice from the Shouguang Municipal Government stating that all of the company's bromine and raw salt facilities will be temporarily closed from December 25, 2023 to February 20, 2024. The company believes this seasonal shutdown is in line with government efforts to address winter air pollution and improve the efficiency of salt water resources.
Compared with the closure from December 10 to February 1, 2023, the closure in 2024 meant that the company would have 15 more days of production time in the fourth quarter of 2023 and lost 19 days of production time in the first quarter of 2024.
According to information, bromine sales usually slow down in winter because customers close due to the Chinese New Year holidays, which causes orders to drop before they close. Furthermore, Gulf Resources said that processing raw salt during the coldest months of winter has become challenging due to low temperatures.