IOL Fluorochemical Weekly Report: High Temperatures Drive Growth in Essential Demand, Refrigerant Market Continues to Operate at High Levels

ChinaIOL
Refrigerant: High temperatures drive demand growth, market continues to operate at elevated levels
This week, refrigerant transactions were robust, with prices remaining at high levels. Weekly market highlights:  **Supply Side:**  Annual production is rigidly constrained by quotas, keeping mainstream refrigerant plants' operations stable. Companies adjust production schedules flexibly based on inventory levels, with strong intentions to cut output and support prices.  **Cost Side:**  Upstream raw material prices declined more than they rose due to weak production and sales. For instance, hydrogen fluoride prices dropped 300 yuan/ton month-on-month.  **Demand Side:**  Persistent high temperatures across many regions recently, far exceeding last year's同期强度, directly boosted aftermarket demand for air conditioners, refrigerators, and other cooling equipment while accelerating the release of rigid demand. Additionally, equipment operating under extreme loads accelerated refrigerant consumption and increased leakage frequency, leading to a notable surge in rigid demand for R32, R22, and other refrigerants in maintenance sectors.  **Overall:**  Rigid quota controls on the supply side fortified the price floor, while rigid demand steadily recovered during the peak season. Under this tight supply-demand balance, the refrigerant market is expected to maintain high prosperity.

ChinaIOL
Fluorinated polymers: traditional applications face significant supply-demand pressure, while high-end applications offer high added value and relative resistance to price drops
The high-load production at fluorine-containing polymer manufacturing facilities has intensified supply-demand pressure, compounded by a downward trend in cost centers. Mainstream product prices collectively face downward fluctuations. On the cost side, upstream core raw materials such as hydrofluoric acid and chloroform have seen price softening, effectively alleviating pressure on midstream and downstream foundational costs. On the supply side, producers' inventories are steadily accumulating, with overall shipments remaining sluggish, leading to a continuous decline in market bargaining power. On the demand side, traditional downstream sectors show relatively weak demand, with only minor activity in general-purpose trading. During market volatility, end-users predominantly adopt demand-based purchasing and cautious observation, with few bulk stockpiling activities. However, high-end specialized segments exhibit structural growth, driven by semiconductor advanced processes and AI computing power industries, which continue to expand demand for high-value-added fluorine materials. Premium products such as electronic-grade hydrofluoric acid, high-purity fluorine-containing specialty gases, semiconductor-grade PFA and PTFE, and AI data center liquid cooling fluorinated fluids demonstrate significantly better supply-demand dynamics compared to commodity categories. Overall, traditional product categories face cost center softening and rising supply-demand pressure, while high-end fluorine materials experience divergent performance driven by AI and semiconductor new demand. Prices remain relatively resilient to declines, leading to a short-term downward fluctuation in the fluorine-containing polymer market with heightened market caution.

Weekly News Highlights

01Zhejiang Hongfu Annual Mixture Filling and Charging 127,100 Tons of Refrigerant Project Announcement
On June 18, Zhejiang Hongfu Chemical Co., Ltd. announced the environmental impact assessment for its project involving annual blending and filling of 127,100 tons of environmentally friendly refrigerants and cleaning agents. The project site is located in the block east of Xiafei South Road, south of Qingshui Road, west of Meishan Road, and north of Baozhi Road in the Zhizao New City, Kecheng District, Quzhou City, Zhejiang Province. With a total investment of 500 million yuan, the project plans to construct comprehensive buildings, quality inspection facilities, utility buildings, blending and filling workshops, Class A warehouses, Class D warehouses, guardhouses, loading and unloading platforms, tank farms, pump areas, and other functional zones. Upon completion, it will achieve an annual production capacity of 127,100 tons of environmentally friendly refrigerants and cleaning agents.

02Yonghe Shares: Plans to Invest 1.914 Billion Yuan in the Shaowu Yonghe Fluorine Material and Pilot Testing Base Project
On July 1, Yonghe Co., Ltd. announced its plan to invest in the construction of the "Fluorine Material and Pilot Base Project" through its wholly-owned subsidiary, Shaowu Yonghe Jintang New Materials Co., Ltd., with a total planned investment of 1.914 billion yuan. According to the announcement, the project will be developed by the company's wholly-owned subsidiary, Shaowu Yonghe, involving an additional 400 acres of land. The project includes the construction of facilities for electronic fluorinated fluids, perfluoropentanone, fluororubber, fluorovinyl (VF), polyvinyl fluoride (PVF), PTFE suspension resin, PTFE dispersion resin, ETFE, blended refrigerants, water-based FEVE, perfluorosulfonic acid resin, and perfluoroether rubber, as well as the establishment of a new R&D pilot base and related public supporting facilities,

03Singapore's NEA will introduce measures to further reduce emissions from refrigeration and air conditioning equipment
On May 28, 2026, the Singapore National Environment Agency (NEA) announced a series of measures to be implemented starting July 1, 2027, aimed at further reducing greenhouse gas (GHG) emissions from refrigeration and air conditioning equipment (RAC). The scope covers large commercial refrigeration systems, transport refrigeration equipment, and air conditioning systems in passenger cars and light goods vehicles (LGVs). These measures will support Singapore in achieving its climate goals: meeting emission reduction targets by 2030 and achieving carbon neutrality by 2050. Starting July 2027, new refrigeration systems commonly used in supermarkets must adopt refrigerants with a global warming potential not exceeding 150 and higher environmental performance. From July 2028, air conditioning systems in newly manufactured passenger cars and light freight vehicles will also need to comply with this requirement.

04Noah Liquid Cooling Completes Shareholding Reform Filing, Aiming for A-share IPO
On June 25, 2026, Noah Liquid Cooling Technology (Zhejiang) Co., Ltd. (hereinafter referred to as "Noah Liquid Cooling") completed its IPO guidance filing with the Zhejiang Securities Regulatory Bureau, with Zhejiang Securities serving as the guidance institution. This national-level specialized and sophisticated "Little Giant" enterprise, headquartered in Shangyu, Shaoxing, officially embarked on its capitalization journey. Noah Liquid Cooling was established in 2015 and previously known as Zhejiang Noah Fluorine Chemical Co., Ltd.On May 27, 2026, the company completed its name change and shareholding reform, with a comprehensive strategic focus on the research and manufacturing of liquid cooled new materials. At present, the company mainly produces three product lines: fluorinated coolant, hydrofluoroether electronic cleaning agent, and perfluorohexane fire extinguishing agent. It is one of the few fluorine-containing electronic chemical manufacturers in China that has broken through the overseas process blockade.