IOL Fluorochemical Weekly Report: orderly recovery of refrigerant demand, continued strong market operation

Refrigerant: demand orderly recovers, market continues strong operation
This week, the demand for refrigerants has resumed in an orderly manner, and the market is temporarily stable. Market characteristics during the week: On the supply side, production within the year is strictly constrained by quotas, mainstream refrigerant factories are operating normally, and each company is scheduling production in an orderly manner based on inventory levels, with a strong willingness to reduce production and raise prices. On the cost side: Under the dual impact of high cost pressure and weak actual shipments, upstream basic raw materials have experienced mixed price fluctuations, with narrow fluctuations being the main trend. On the demand side: As temperatures rise in various regions, the release of demand during peak seasons in the domestic market will drive an increase in production and sales in the domestic market; Affected by the recent easing of the US Iran conflict, the Middle East air routes have improved, and foreign trade shipments and orders are expected to gradually resume. With the digestion of foreign inventory, the demand for essential purchases will increase, and the future demand for foreign trade is expected to grow. Overall, against the backdrop of limited supply and increasing demand, it is expected that the refrigerant market will continue to operate strongly. It should be noted that there is still uncertainty in the demand for refrigerant foreign trade in the future, and the core risk point lies in the direction of the US Iran conflict.

Fluorinated polymers: highlights in mainstream oversupply and segmented applications
This week, there was an oversupply of mainstream products in the fluoropolymer market, and the pressure of supply and demand led to prices falling near the cost line. However, there were highlights in the segmented use of each product. Market characteristics during the week: Upstream raw materials and individual products are under pressure to maintain stable operation, providing stable cost support for the entire range of PVDF, PTFE, FEP and other products, but insufficient cost fluctuations are driving price rebounds. On the supply side, the increase in factory equipment maintenance and load reduction is beneficial for alleviating short-term market supply and demand pressure. On the demand side, traditional chemical anti-corrosion, automotive and transportation, machinery and industrial manufacturing, national defense and military industries have stable demand, while emerging fields such as new energy, semiconductors, medical and health, aerospace, environmental engineering, AI and data centers are expected to experience explosive growth in demand. From a product perspective, popular product factories have a strong mentality of raising prices, but their acceptance by end-users is low. Coupled with the impact of the off-season demand, the short-term trend of fluorinated polymers will remain stable at the bottom.

Weekly News

01Announcement of the First Adjustment of Production Quotas for HCFCs and HFCs in 2026
Recently, the Ministry of Ecology and Environment has announced the first adjustment of the production quotas for HCFCs and HFCs for 20 enterprises, including Shandong Aofan New Materials Co., Ltd., in 2026. From the perspective of adjusting the total amount, the quota adjustment of HCFCs mainly involves quota conversion between different production bases within the enterprise, and only involves quota transfer between two Zhejiang enterprises: Zhejiang Lanxi Juhua Fluorochemical Co., Ltd. has significantly increased its quota for HCFC-22, while Zhejiang Quhua Fluorochemical Co., Ltd. has equally reduced its quota for this category. The quota redistribution within the region has been completed, and the overall quota of HCFCs has not changed. The national quota for HFCs has increased by 3473 tons, while the domestic trade quota has increased by 1245 tons. Among them, the R32 quota has increased by 1242 tons, coming from Liaocheng Fuer New Material Technology Co., Ltd.

02Yingke New Materials plans to approve two major fluorine chemical projects
Recently, the Administrative Approval Bureau of Chengde City released the Environmental Impact Assessment Document No. 465 of 2026 for public approval, intending to give approval opinions on the environmental impact assessment documents of two new material construction projects of Yingke New Materials Co., Ltd. Yingke New Materials Co., Ltd. plans to invest 20 million yuan in Dongshanjia Village, Pingquan Town, Pingquan City, Chengde City, Hebei Province. The company will construct an annual production capacity of 500 tons of rare earth fluoride equipment within its existing factory area. It is expected to start construction in May 2026 and be completed in July. 2. It is planned to invest 20 million yuan to build a sodium hexafluorophosphate production line using the existing rare earth 3 # warehouse, with an annual output of 200 tons of sodium hexafluorophosphate. As a key material for sodium ion battery electrolytes, it is used in fields such as energy storage and low-speed electric vehicles.

03Shandong Jinji 1000 ton Fluoroplastic Composite Material Project Announcement
On June 11th, Licheng Branch of Jinan Ecological Environment Bureau issued a public notice to review the environmental impact assessment form of the industrialization project of intelligent manufacturing supporting the annual production of 1000 tons of fluorine-containing new materials. Jinji (Shandong) New Material Technology Co., Ltd. plans to invest 120 million yuan to build three fluoroplastic composite material production lines in Licheng District, Jinan City, with an annual output of 1000 tons (20 million pieces) of fluoroplastic composite material products after completion.

04Registration cancellation of Hongyuan Pharmaceutical's 40000 tons/year lithium hexafluorophosphate project
Recently, according to the construction project filing system of Hubei Government Service Network, the 40000 tons/year lithium hexafluorophosphate project applied for filing by Hubei Hongyuan Fluorochemical Co., Ltd. on May 27th has been cancelled, and the original start date was August 2026. In addition to canceling the above project registrations, Hubei Hongyuan Fluorochemical Co., Ltd. completed the registration and review of the annual production of 28000 tons of lithium hexafluorophosphate project on June 11. According to the registration information, it plans to invest 281.48 million yuan to build a new pentafluorophosphate synthesis workshop, electrolyte intelligent manufacturing workshop, and supporting production facilities in Wuxue City, Huanggang City, Hubei Province. After the project is completed, it will achieve an annual production scale of 28000 tons of lithium hexafluorophosphate and is planned to start construction in September 2026.

05Announcement of the Renovation Project for 4500 Tons of Fluorinated Pesticides Annual Production in Zhongqi, Jiangsu Province
Recently, Jiangsu Zhongqi Technology Co., Ltd.'s herbicide raw material renovation project has made new progress. Its annual production of 4500 tons of cyhalothrin raw material renovation project has released the first public announcement of environmental impact assessment, marking that the renovation and expansion project has officially entered the environmental impact assessment stage. Jiangsu Zhongqi Technology Co., Ltd. plans to adjust the equipment layout and purchase new equipment such as reaction vessels, intermediate tanks, heat exchangers, pumps, etc., relying on the company's synthesis workshop 12 production facilities and existing public works, tank areas, warehouses, environmental protection facilities, etc., phasing out some old equipment, and constructing an annual production capacity of 4500 tons of cyanide fluorine grass ester raw material renovation project. After the completion of the project, the 12 production units in the synthesis workshop will have an annual production capacity of 4500 tons of cyhalothrin raw material, while producing 6500 tons of by-product potassium chloride annually. At present, the new factory area of Jiangsu Zhongqi Technology Co., Ltd. mainly produces pesticide raw materials such as fluorouracil and other pesticide products. The environmental protection facilities of the existing engineering supporting construction have passed the completion environmental protection acceptance and are currently operating normally.

06The construction project of a 200000 ton annual fluorite beneficiation plant in Deheng, Jiayuguan has been approved
On June 11, 2026, the Ecological Environment Bureau of Jiayuguan City issued an approval document, and the Environmental Impact Assessment Report for the construction project of Deheng (Jiayuguan) Supply Chain Management Co., Ltd.'s annual production of 200000 tons of fluorite beneficiation plant was officially approved, marking the landing of the environmental impact assessment procedures for the fluorite beneficiation project and key progress in project construction. Deheng (Jiayuguan) Supply Chain Management Co., Ltd. plans to invest 345 million yuan to build a new fluorite beneficiation plant with an annual output of 200000 tons. The construction site is located in the area north of Xinhua North Road and east of Hongxiang Road in Jiabei Industrial Park, Jiayuguan City. The project covers an area of 23000 square meters, with the construction of a new flotation workshop, supporting facilities such as sedimentation tanks, circulating water tanks, laboratory centers, office buildings, dormitory buildings, gas hot water boilers, and the purchase and installation of production equipment such as crushers, ball mills, flotation machines, and filter presses. After the project is completed, it will process 200000 tons of fluorite raw ore annually, with an annual output of 16500 tons of fluorite concentrate (blocks) and 63000 tons of fluorite concentrate (powder).

07Quzhou Huanxin New Year Production 10000 Tons Fluorinated Chemicals Project Filing
Recently, Quzhou Huanxin Fluorine Materials Co., Ltd.'s annual production of 10000 tons of fluorine-containing chemicals project passed the filing approval and obtained the construction land planning permit the next day. The new project is located in the high-tech area of Quzhou Intelligent Manufacturing New City, with a total investment of 320 million yuan. It will add an annual production line for 10000 tons of fluorine-containing chemicals, and construct supporting buildings such as liquid chlorine pipelines, hydrogen fluoride pipelines, power workshops, auxiliary buildings, research and development/testing buildings, Class E warehouses, and external pipe racks. It will also purchase equipment such as reactors and storage tanks to form corresponding production capacity; The project plans to produce 66086.9 tons/year of 31% hydrochloric acid, 1513.8 tons/year of 30% hydrofluoric acid, and 7546.9 tons/year of by-product salt by May 2028.