Fluorochemical weekly briefing: insufficient demand recovery, market waiting for the downturn

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market conditions

Refrigerant: the export orders are basically stagnant, and the market has a strong wait-and-see atmosphere.

This week, the turnover in the refrigerant market was light, and the price fluctuated downward. Weekly market characteristics: the supply of fluorite powder and hydrofluoric acid in the raw material market is tight, but the downstream demand is weak, and the price is temporarily stable; The price of methane chloride fluctuates in a narrow range due to weak demand and loose cost; The production and sales of trichloroethylene and tetrachloroethylene are weak, but the supply of goods is tight, and the price remains high; 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. In late December, the refrigerant export market entered the "hibernation period" due to the influence of shipping date, license and other factors; The price of mainstream refrigerant products is close to the cost line, and even some products, such as HFC-32 HFC-134a, are seriously inverted. The factory is unwilling to ship at a low price. Some factories without inventory pressure suspend receiving orders to reduce losses. The overall wait-and-see atmosphere is strong, and the delivery is 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: weak demand superimposed with falling cost; short-term market pressure drops.

This week, the demand of fluoropolymer market was weak and the cost fell back, and both VDF series and TFE series were under pressure and shock. Weekly market characteristics: the self supply rate of VDF series products increased rapidly, but the short-term market of downstream finished products, such as FKM and PVDF, was light, and the shrinking of production and sales aggravated the decline of the market; The recent cost support of TFE series products is stable, but the weakening demand for domestic and foreign sales has led to downward pressure on prices; To sum up, in the weak market environment, the factory with a complete industrial chain and customer base has obvious advantages. The game between upstream and downstream in the future market has intensified, and downstream pressure is being transferred to the upstream.

Fluoride containing lithium salt: the downstream receiving pressure is transmitted upward, and the fluoride containing lithium salt market continues its downward trend.

This week, the domestic lithium raw material price continued its downward trend, and the pressure on the cost of lithium fluoride salt was eased to a certain extent. However, the downstream power battery electrolyte enterprises have a strong wait-and-see mentality. They have strict control over cost and inventory. The overall electrolyte shipment will be slightly reduced. The profit space of lithium fluoride salt enterprises will be further compressed, and the market will operate in a weak position. 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 there is room for further weakening of costs. On the supply side, as the end of the year is approaching, lithium hexafluorophosphate enterprises will strengthen their willingness to ship in order to seize the market next year, the start-up load of devices is still high, and the supply of goods on the market 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. They have a strong mentality of controlling inventory and waiting for the future market, and their ability to accept the amount and price of lithium fluoride is limited. In the short term, the lithium salt industry chain will continue to be weak, but due to cost support, there is limited room for further downtrend.

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News of the week

Refrigerant: Ministry of Ecology and Environment: It is prohibited to produce heat preservation tubes and solar water heaters with R-141b as foaming agent, and it is prohibited to produce disposable medical devices with HCFCs as silicone oil thinner or cleaner

Fluoropolymers: Polyfluoro plans to invest 600 million yuan to establish a fluoro based new material industry fund; Inner Mongolia Jiafu Chemical Co., Ltd. proposes to build 900 tons of p-fluorotoluene and other projects.

Lithium fluoride salt: Xinzhoubang invested in the construction of Huizhou Battery and Semiconductor Chemical Base; Yichang Jingneng Fuxin New Material is proposed to produce 30000 tons of high-purity sodium fluoride annually; Yongtai Technology's GDR application was accepted by China Securities Regulatory Commission and proposed to be listed on London Stock Exchange.

cryogen

Ministry of Ecology and Environment: prohibit the production of heat preservation pipes and solar water heaters with R-141b as foaming agent

Recently, the Ministry of Ecology and Environment issued a letter soliciting public opinions on the Notice on Prohibiting the Production of Thermal Insulation Pipe Products and Solar Water Heater Products with 1,1-dichloro-1-fluoroethane (HCFC-141b) as Foaming Agent (Draft for Comments), and the Notice on Prohibiting the Production of Disposable Medical Devices with HCFCs as Silicon Oil Diluent or Detergent (Draft for Comments).

The draft shows that from July 1, 2023, no enterprise shall use 1,1-dichloro-1-fluoroethane (HCFC-141b) as foaming agent to produce insulation pipe products and solar water heater products, and shall not produce disposable medical devices with HCFCs as silicone oil thinner or cleaner.

Fluoropolymers

Dofluoro plans to invest 600 million yuan to establish a fluoro based new material industry fund.

On December 13, Dofluoro New Materials Co., Ltd. issued an announcement on its intention to participate in the investment and establishment of a fluoro based new material industry fund.

The announcement said that the company planned to invest 600 million yuan in wutong Tree (Nanning) Fluoro based New Material Transformation and Upgrading Fund Partnership (limited partnership). The amount invested by the industry fund in the projects of fluorochemicals and fluoro based new materials, such as high-performance fluoro inorganic substances, fluoro functional gases, fluoro polymer materials, fluoro fine chemicals, shall not be less than 70% of the investment amount of the partnership.

At least 30% of the investable amount of the Fund will be invested in the fluorochemical industry and fluoro based new materials, such as fluororesin, the fourth generation refrigerant, fluororubber, polytetrafluoroethylene fiber and filter materials, and perfluorinated sulfonic acid membrane materials, in the "Fourteenth Five Year" Development Guide for New Chemical Materials Industry "and the" Investment Guide "for the National Manufacturing Industry Transformation and Upgrading Fund.

Inner Mongolia Jiafu Chemical Co., Ltd. proposes to build 900 tons of p-fluorotoluene and other projects.

On December 9, the website of Linxi County People's Government announced the project of Inner Mongolia Jiafu Chemical Co., Ltd. with an annual output of 3000 tons of cyclopentanone, 1000 tons of 2-bromoethylbenzene and 900 tons of p-fluorotoluene. The publicity shows that the project is located in Linxi County Industrial Park, with a total investment of 27.1017 million yuan.

It is understood that Inner Mongolia Jiafu Chemical Co., Ltd. officially settled in Linxi County, Chifeng on June 9 this year. It is a modern fine chemical enterprise integrating medical technology development, high-end platform building, and supply chain services in the field of health. With a total investment of 108 million yuan, it mainly produces chlorinated cyclopentane and other products. The project of trifluorobenzoic acid and trifluoromethylaniline to be launched in the second phase of the company makes full use of local hydrofluoric acid as raw materials, extends the hydrofluoric acid industry chain and reduces transportation costs.

Lithium fluoride salt

New Zebang plans to invest 1.2 billion yuan in building Huizhou Battery and Semiconductor Chemical Base.

On the evening of December 13, New Zebang (300037) announced that it planned to invest in the construction of the electronic chemicals project in Daya Bay Petrochemical District, Huizhou City. The total investment of the project is planned to be no more than 1.2 billion yuan, with a construction period of two years. The construction content includes the production, research and development and pilot test bases of electronic chemicals such as batteries and semiconductors.

New Zebang said that although the company in South China has built a supporting production base for electrolyte, solvent and some semiconductor chemicals in Huizhou Zebang, with the rising demand for downstream products, the existing capacity of lithium battery electrolyte, ammonia and other products can no longer meet the needs of future customers. In addition, the current Shenzhen R&D headquarters has been built for many years, and its scale and functions can no longer fully meet the company's future needs. The implementation of this project can provide sufficient space for the company's R&D and pilot test.

Yichang Jingneng Fuxin Materials Proposed 30000 ton/year High purity Sodium Fluoride Project.

Recently, Yichang Ecological Environment Bureau released the EIA document of the 30000 t/a high-purity sodium fluoride project of Yichang Jingnengfu New Materials Co., Ltd.

According to the EIA, the project is located in Tianjiahe District of Yaojiagang Chemical Park, Yichang City, Hubei Province, with a total investment of 150.7249 million yuan. It is mainly to build a new sodium fluoride device with an annual output of 30000 tons and a silica gel recycling device. After the project is completed, it will produce 15000 tons of pharmaceutical grade sodium fluoride for toothpaste, 10000 tons of extractant grade sodium fluoride for lithium battery, and 5000 tons of electronic grade sodium fluoride for sodium battery. After completion, the project will form an efficient industrial chain with well-known new energy enterprises in Yichang, effectively promoting the development of new energy industry in Hubei Province.

Yongtai Technology's GDR application was accepted by the CSRC and proposed to be listed on the London Stock Exchange.

On the evening of December 6, Yongtai Technology (002326) released an announcement that the company had recently received the Application Acceptance Form for Administrative Licensing issued by the China Securities Regulatory Commission on November 30, 2022. The China Securities Regulatory Commission (CSRC) reviewed the application materials submitted by the company for the proposed issuance of global depositary receipts ("GDRs") and listing on the London Stock Exchange, and believed that all the materials were complete, Decided to accept the application for administrative license.

Founded in 1999 and listed in 2009, Yongtai Technology is headquartered in Taizhou City, Zhejiang Province. Its main production bases are located in Zhejiang, Jiangsu, Shandong, Fujian, Guangdong, Chongqing and Inner Mongolia. The company's lithium battery and other material products mainly include lithium battery materials (lithium hexafluorophosphate, lithium difluorosulfonylimide, VC, FEC, etc.), fluorine-containing liquid crystal intermediates, etc. Among them, in the lithium battery material sector, Yongtai Technology has put into production 8000 tons/year of lithium hexafluorophosphate and 900 tons/year of lithium difluorosulfonymide; VC products are 5000 tons/year, and FEC products are 3000 tons/year.