IOL Fluorine Chemical Weekly Report: Geopolitical Disturbances and Weak Demand Impact Transactions, Refrigerant Market Contracts to Maintain Stability

Refrigerant: Short-term sales and export demand fall short of expectations, market stabilizes amid shrinking volume
This week, refrigerant transactions were weak, with the market fluctuating at high levels. Key market characteristics during the week:  **Supply side**: Annual production was constrained by rigid quotas, and mainstream refrigerant plants operated normally. However, due to sluggish exports in the foreign trade market, some plants reduced production, leading to rising industry inventory.  **Cost side**: Under the dual pressures of high cost burdens and weak demand, prices of upstream raw materials fluctuated narrowly. The impact of international conflicts resulted in tight supplies and high prices for imported-dependent products such as sulfur, methanol, and petroleum.  **Demand side**: The second quarter is typically the peak season for air conditioning and refrigeration industries, but this year, high downstream inventory and weak terminal demand led to an early shift into a slow season for production and sales. Additionally, the Middle East conflict disrupted shipping routes and delayed sea freight, negatively impacting export demand and overall demand contraction.  Overall, geopolitical disruptions and weak demand affected transactions, while cost pressures and relaxed HFC phaseout policies in the UK and the US provided support. The market is expected to remain volatile at high levels in the coming period.

Fluorinated polymers: Persistent upstream and downstream standoff, stable price negotiation
This week, the fluoropolymer market upstream and downstream continued to remain in a stalemate, with mainstream products maintaining a stable competitive stance. On the cost side, core raw materials such as fluorite and hydrofluoric acid showed slight price easing, but overall cost support remained strong. On the supply side, increased factory operating loads led to rising supply-demand pressure, with insufficient momentum for further price hikes, keeping the market under pressure but stable. On the demand side, differences between mid-to-low-end and high-end products across various application fields persisted. Under the influence of structured supply-demand imbalances, different grades of products continued to exhibit divergent trends, maintaining the industry's structural characteristic of "stable prices with volume growth in high-end segments and weak prices with flat volume in low-end segments." In summary, it is predicted that under the combined impact of cost pressures from upstream raw material price fluctuations and supply-demand pressure from increased factory production, the fluoropolymer market will continue to maintain a stagnant consolidation pattern.

Weekly News

01US officials announce postponement of refrigerant HFC phase out process
On May 21st, the Trump administration in the United States announced multiple regulatory adjustment measures, abolishing and amending the strict control regulations in the refrigeration and air conditioning fields during the Biden administration. By relaxing the use of refrigerants and simplifying equipment operation and maintenance requirements, it reduces the burden on enterprises and lowers the cost of living for the public, covering key areas such as supermarket cold chain, household appliances, and food transportation. The core of this policy adjustment focuses on optimizing the regulation of the refrigeration industry. The US Environmental Protection Agency has officially finalized the revised content of the "2023 Technology Transformation Rules", extending the compliance period of hydrofluorocarbon refrigerants, relaxing relevant usage restrictions, and allowing enterprises to choose more cost-effective refrigerant products. At the same time, the Trump administration plans to amend the 2024 Emissions Reduction and Recycling Act, canceling the previously stringent leak repair requirements for large in use refrigeration systems across the United States.

02Announcement of Sichuan Haohong Xinrui Mining's Annual Production of 180000 Tons of Fluorite Powder Project
On May 19th, Dechang Ecological Environment Bureau released the first environmental impact assessment announcement on the evaluation information of Sichuan Haohong Xinrui Mining Co., Ltd.'s annual production of 180000 tons of fluorite powder project. The project is located in the characteristic industrial park of Dechang County, Liangshan Yi Autonomous Prefecture, Sichuan Province, with a planned investment of 221 million yuan. It mainly includes the construction of production facilities such as magnetic separation workshop, flotation workshop, finished product room, raw material room, as well as supporting public works and environmental protection projects. Develop an annual production capacity of 180000 tons of fluorite powder.

03Akoma's Calvert production base in the United States has increased PVDF production capacity by 15%
Recently, Arkema's 2025 Annual and Sustainability Report revealed that following the capacity upgrades of its Changshu factory in China in 2023 and its Pierre Bernier factory in France in 2024, the company is located in Kynar, Calvert, USA ®  The PVDF production line has also experienced expansion. The new production line will be put into operation from April 2026, and after it is put into operation, Arkema's PVDF supply capacity in the Americas will increase by 15%. It is reported that Arkema's Calvert production base PVDF capacity expansion project has an investment of about 20 million US dollars, with a focus on innovative PVDF grades (Kynar) ®  PVDF）， Intended to support the manufacturing of electric vehicles (EVs) and energy storage systems, enhance sustainable development capabilities, and support the growth demand of other strategic market customers for local manufacturing.

04Pre approval public announcement of Haidefu's 5500 ton annual production of fluorine-containing fine chemicals project
On May 22nd, the full information of the Environmental Impact Assessment Report for the renovation and expansion project of the Haidefu Fluorinated Fine Chemical Production Line of Fujian Haidefu New Materials Co., Ltd. was publicly disclosed before approval. The project is located at No. 2 Qimu Road, Wujiatang Town, Shaowu City, Nanping City, Fujian Province. It is planned to invest 22 million yuan and will not add new land or build factories. By updating and transforming production processes, it will complete the renovation of some of the original production lines. The construction scale is an annual production of 5500 tons of fluorine-containing fine chemicals.