Fluorine chemical weekly briefing: weak demand, light trading and investment, weak market operation

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market conditions

Refrigerant: the enthusiasm of factory production is weakened, and the overall turnover is light

This week, the production and sales of refrigerant market were light, and the price of raw materials fluctuated downward. Weekly market characteristics: the supply of fluorite powder and hydrofluoric acid in the raw material market is tight, and the price is high and firm; The price of methane chloride fluctuates in a narrow range due to weak demand and loose cost; The prices of trichloroethylene and tetrachloroethylene remained high due to the tight supply; In addition, the prices of other basic raw materials, such as liquid chlorine, calcium carbide, sulfuric acid and methanol, have decreased by varying degrees due to weak downstream demand. At present, in the last month when factories compete for quotas, the prices of mainstream refrigerant products are near the cost line, or even some products are seriously inverted. The factory's enthusiasm for shipment is obviously weakened, and some factories without inventory pressure suspend receiving orders to reduce losses; The export market has also come to an end, with orders significantly reduced and the overall market turnover light. It is expected that before the arrival of the New Year, the situation of weak refrigerant supply and demand will be difficult to reverse, and the future market will be dominated by narrow consolidation.

Fluoropolymers: The market as a whole was weak at the end of the year, and most products were under pressure to maintain stability

The fluoropolymer market has obvious off-season characteristics, the weak supply and demand relationship and the superimposed cost fall back, the VDF series pressure callback shocks, and the TFE series pressure maintenance shocks. Weekly market characteristics: the production and sales scale of VDF series products has shown a growth trend with the rapid growth of downstream application industries. The high profit market of PVDF in the early stage has disappeared, the market has gradually returned to rationality, and the cost pressure of downstream factories has accelerated to reduce; The recent cost support of TFE series products is strong, but the weak demand for domestic and foreign sales has led to the price consolidation at a low level; Cost support and the game between supply and demand are still the core elements that determine the price trend. The factory with a complete industrial chain has obvious advantages, but the downstream pressure is being transferred to the upstream.

Fluorine containing lithium salt: the supply is high, the demand is shrinking, and the downward trend of the fluorolithium salt market is obvious

This week, the price of domestic lithium raw materials fell sharply, but the downstream power battery electrolyte enterprises had a strong wait-and-see mentality and strict control over cost and inventory. The profit space of lithium fluoride salt enterprises was further compressed, and the market was weak. It is comprehensively predicted that the tight supply of raw materials will continue, but the demand side is more bearish on the market, ordering is very limited, and the industrial chain will be more strict in cost control. On the supply side, with the approaching end of the year and the gradual release of new capacity, the start-up load of the lithium hexafluorophosphate unit is on the high side, the manufacturers are actively shipping, and the on-site supply will continue to be loose in a short time. On the demand side, the impact of the subsidy decline next year on the market is still unclear. Downstream electrolyte and battery enterprises have a negative view of the future market, and they have a strong mentality of controlling inventory and waiting for the future market. In a short time, it is difficult to change the weak downward market of lithium salt industry chain.

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News of the week

Refrigerant: Yonghe Shares will acquire 100% equity of Shilei Fluorochemical

Fluoropolymers: The project of Zhonghao Chenguang with an annual output of 26000 tons of high-performance organic fluorine materials has been rapidly promoted; Hubei Lianchang New Materials Co., Ltd. started trial production of 60000 tons of fluoride containing fine materials and other projects

Fluorine containing lithium salt: Dofluoro plans to acquire 27% of the equity of Baiyin Zhongtian for 135 million yuan to realize its wholly-owned holding; Inner Mongolia Hongshi New Materials Co., Ltd. is proposed to produce 5000 tons of new lithium salt LIFSI and other projects annually; The main building of the 150000 t/a lithium ion battery electrolyte project of Farnlet was successfully capped

cryogen

Yonghe Shares will acquire 100% equity of Shilei Fluorochemical

On December 6, Yonghe Shares announced that it had signed the Agreement on Cash Purchase of Assets with Jiangxi Shilei Fluorine Materials Co., Ltd. and Zhejiang Qi Enterprise Management Co., Ltd., and intended to acquire 100% of the equity of Jiangxi Shilei Fluorine Chemical Co., Ltd. held by Shilei Fluorine Materials with self raised funds.

Yonghe Shares said that methane chloride, the main product of Shilei Fluorochemical, is an important raw material for Yonghe Shares to produce HCFC-22, HFC-32 and other products. Yonghe Shares' acquisition of Shilei Fluorochemical can meet the safety of raw material supply to a certain extent, which is conducive to building a more comprehensive and competitive fluorine chemical industry chain.

Fluoropolymers

The project of Zhonghao Chenguang with an annual output of 26000 tons of high-performance organic fluorine materials has been rapidly promoted

At the construction site of Zhonghao Chenguang 26000t/a high-performance organic fluorine material project in the new material industry base in southern Sichuan, the sound of the machine is booming, the forklift is bustling, and the construction scene is boiling.

It is understood that the total investment of Zhonghao Chenguang 26000 t/a high-performance organic fluorine material project is about 2.2 billion yuan, mainly including five new product units, including 8000 t/a of PTFE dispersion resin, 10000 t/a of PTFE dispersion liquid (60% content), 6000 t/a of FEP, 500 t/a of fusible PTFE resin, and 500 t/a of octafluorocyclobutane, It is equipped with 25000 t/a tetrafluoroethylene (TFE) monomer, 50000 t/a difluoromethane unit, 3000 t/a hexafluoropropylene, and 100000 t/a industrial grade polyaluminum chloride production line, which is expected to be completed and put into production in 2024.

Hubei Lianchang New Materials Co., Ltd. started trial production of 60000 tons of fluoride containing fine materials and other projects

According to the news of Zhijiang Financial Media Center on December 7, Hubei Lianchang New Materials Co., Ltd.'s project with an annual output of 60000 tons of fluoride containing fine materials, pharmaceutical intermediates and by-products was started in November 2020 and completed in June 2022. At present, it has entered the trial production stage.

It is understood that the total investment of the project is 1.005 billion yuan. Relying on the advantages of surrounding hydrofluoric acid, chlor alkali and other resources, the project can produce 30000 tons of fluorobenzene and 30000 tons of benzoyl chloride products annually after completion. The project will become the largest production base of fluorobenzene and benzoyl chloride series products in China when it is completed and put into production.

Lithium fluoride salt

Dofluoro plans to acquire 27% of the equity of Baiyin Zhongtian for 135 million yuan, realizing wholly-owned holding

On December 3, Dofluoro announced that the Company held a meeting on November 20 to review and approve the Proposal on the Company's Plan to Transfer 27.00% of the Equity of Baiyin Zhongtian Chemical Co., Ltd. by Public Delisting; On November 24, the Company received the Transaction Signing Notice issued by Beijing Equity Exchange, confirming that the Company was the transferee of 27.00% of the equity of Baiyin Zhongtian, and the transaction price was RMB 134.83 million.

After the completion of the equity transfer, the Company will hold 100% of the equity of Baiyin Zhongtian, which does not involve changes in the scope of the consolidated statements.

Inner Mongolia Hongshi New Materials is proposed to produce 5000 tons of new lithium salt LIFSI and other projects

On December 5, the website of Wuhai Ecological Environment Bureau announced the projects of Inner Mongolia Hongshi New Materials Co., Ltd. with an annual output of 5000 tons of new lithium salt LIFSI and other products.

The publicity shows that the project is located in Wuda Industrial Park, Wuhai City, with a total investment of 500 million yuan. After completion, it will achieve an annual production capacity of 5000 tons of new lithium salt LIFSI, 10000 tons of hydroquinone, 2000 tons of benzoquinone, etc.

The main building of the 150000 t/a lithium ion battery electrolyte project of Farnlet was successfully capped

Recently, the construction site of the 150000 t/a lithium ion battery electrolyte project of Anhui Farnlet New Energy Technology Co., Ltd. has been busy. After two months of intensive construction, the main building has been completed and successfully capped. Key progress has been made in the construction of the project. The preliminary outline of a large-scale and digital intelligent electrolyte manufacturing factory has been presented.

Since the commencement of Anhui Farnlet Electrolyte Project on September 28, with the care, support and joint efforts of government leaders at all levels, construction units and supervision units, and on the premise of ensuring project quality and construction safety, the project team has overcome the adverse factors such as epidemic situation and extreme weather, optimized the construction organization scheme, scientifically arranged the construction procedures, fully promoted the project construction, and achieved the project nodes as scheduled.

It is reported that Anhui Farnlet Electrolyte Project, with a total investment of 500 million yuan, is located in Anqing High tech Zone, Anhui Province, and covers an area of 158 mu. At present, the main structure of the project has been completely capped, and it is now in the process construction stage. It is planned to be completed and put into operation in March 2023. The project is expected to have an annual output value of about 6 billion to 8 billion yuan after full production.