IOL Fluorine Chemical Weekly: Refrigerant Market Maintains Strong Performance, Fluoropolymer Mainstream Products Show Good Production and Sales

ChinaIOL
Refrigerant: Market remains resilient amid rising temperatures
This week, refrigerant transactions were robust, with the market maintaining a strong performance. Key market characteristics during the week:  **Supply Side**: Mainstream refrigerant manufacturers operated smoothly, with no immediate inventory pressure, resulting in an overall tight supply.  **Cost Side**: Upstream raw material production and sales performed well, with prices rising more frequently than falling. Notably, dichloromethane and sulfuric acid prices surged over 7% weekly. Additionally, due to international conflicts, products reliant on imports—such as sulfur, methanol, and petroleum—faced widespread shortages and high prices.  **Demand Side**: Affected by the El Niño event this year, temperatures across most regions are expected to be higher than the same period in previous years, with more hot days than usual. This will create a strong demand stimulus for refrigeration equipment. However, against the backdrop of a high base and growth in air conditioner production and sales in 2025, this year's scale is unlikely to achieve further expansion.  Overall, under the dual benefits of cost-driven dynamics and supply constraints, refrigerant prices are highly likely to remain firm in the near future.

Fluorine-containing polymers: upstream raw material prices remain firm, while downstream products stabilize and explore for potential increases
This week, the production and sales of mainstream fluoropolymer products in the market performed well, with strong cost support driving stable and slightly rising product prices. On the cost side, upstream raw material prices remained firm and steady, providing robust support for downstream product costs. On the supply side, factory inventories were low, while operating rates steadily increased, resulting in an overall balanced supply-demand dynamic. The tension between factories' price-holding intentions and downstream demand-side price-cutting demands was evident. On the demand side, the fluorine materials industry is undergoing significant structural differentiation: the high-end sector benefits from strong demand in sectors such as semiconductors and new energy, leading to a supply shortage scenario; conversely, the low-end market has fallen into a "involution-style" price competition. This structural supply imbalance is the primary reason why the industry appears to grow at a seemingly impressive rate but lacks quality. In the future, fluctuations in raw material prices and the operating conditions of major factories will remain key factors determining price trends, while market demand is expected to grow relatively steadily.

Weekly news

01Sanming Jinfu: plans to expand 20000 tons of electronic grade hydrofluoric acid
On May 9th, the Ecology and Environment Bureau of Sanming City plans to publicly announce the environmental impact assessment of the fluorine-containing new materials and clean production improvement project of Fujian Sanming Jinfu Chemical Technology Co., Ltd. Sanming Jinfu Chemical Technology Co., Ltd. plans to implement technological transformation and expansion of the existing factory area in Huangsha New Materials Circular Economy Industrial Park, Sanming City, Fujian Province. The company will add multiple production lines, including an annual output of 30 tons of high-purity antimony pentafluoride production line, 25300 tons of polymeric ferric sulfate production line, 22700 tons of polyaluminum chloride iron production line, 2 tons of fluorinated graphite (carbon fluoride) production line, and 20000 tons of electronic grade hydrofluoric acid production line.

02Kemu: Significant growth in revenue from refrigerant products in Q1 2026
On May 5th, Chemours' Q1 2026 financial report showed net sales of $1.38 billion, a year-on-year increase of 1%. Among them, TSS's segmented market performance set a new record, including Opteon ™ Refrigerant increased by 12% year-on-year and adjusted EBITDA. The TSS segmented market had a net sales revenue of 568 million US dollars in the first quarter of 2026, an increase of 22% compared to the same period last year, mainly driven by an 11% increase in prices, a 9% increase in sales volume, and a 2% increase in currency. The price increase is mainly due to the use of Freon in North American automobiles ™ Sales driven. The sales growth is mainly due to the introduction of Opteon ™ The continuous transformation of refrigerants and the use of Freon in North American automobiles ™ sale. Freon ™ Revenue reached 162 million US dollars, a year-on-year increase of 67%; Opteon ™ Refrigerant revenue was 313 million US dollars, a year-on-year increase of 12%.

03Shandong Deyi 5000 ton PVDF production line expansion project announced
Recently, the Ecological Environment Bureau of Dezhou City plans to publicly announce the approval opinions on the environmental impact assessment documents for the annual production of 10000 tons of polyvinylidene fluoride monomer and 5000 tons of polyvinylidene fluoride construction project of Shandong Deyi New Materials Co., Ltd. The project has an investment of 205 million yuan to build a new F142b/VDF production plant (10000 t/a VDF for the ongoing 5000t/a PVDF production line in PVDF Workshop 3 and the expansion of the 5000t/a PVDF production line in this project), and to expand a 5000t/a PVDF production line based on PVDF Workshop 3. After the completion of this project, the annual production capacity will be 5000 tons of polyvinylidene fluoride, 40000 tons of hydrochloric acid, and 2600 tons of sodium hypochlorite solution. The entire plant will achieve an annual production capacity of 25000 tons of polyvinylidene fluoride, 100000 tons of hydrochloric acid, and 7000 tons of sodium hypochlorite solution.

04Dongyue Future Hydrogen Energy 1000 tons/year Meltable Polytetrafluoroethylene (PFA) Expansion Project Announcement

On May 7th, the Ecology and Environment Bureau of Zibo City announced the approval decision for the 1000 ton/year expansion project of Shandong Dongyue Future Hydrogen Energy Materials Co., Ltd. for meltable polytetrafluoroethylene (PFA). The project has an investment of 10.5 million yuan and aims to expand the production of 1000 tons/year of meltable polytetrafluoroethylene (PFA) through the renovation of existing facilities. By utilizing some of its equipment and facilities, the project requires the addition of more than 20 sets of storage tanks, pumps, and other equipment. After the project is completed, it will have an annual production capacity of 2000 tons of meltable polytetrafluoroethylene (PFA). The expected production date is January 2028.