Fluorochemical weekly briefing: supply and demand shrink at the end of the year, and the market is under pressure to maintain stability
one Market situation
Refrigerant: the demand for domestic and foreign sales is light, and the production of factories is reduced and production is increased
This week, the negative factors in the refrigerant market dominated, and the price was stable and down. Weekly market characteristics: the supply of fluorite powder and hydrofluoric acid in the raw material market has shrunk, but the downstream demand is weak and the price is weak and stable; Trichloroethylene, tetrachloroethylene, sulfuric acid, and liquid chlorine are subject to weak downstream demand, reduced procurement, and downward price shocks. The price of upstream raw materials and products has fallen more or less, resulting in weak cost support for mainstream refrigerants. In terms of products, the overall reduction of HCFCs production quota issued in the new year is about 20% - 60%, and the reduction of supply leads to the strength of the seller's market. It is expected that the price of R22 will still rise in the future. The downstream demand market of HFCs is in the off-season, and the Spring Festival is approaching. Affected by the stagnation of logistics and the reduction of export demand, domestic and foreign demand is weak, and factory shipments are not smooth. In order to reduce losses and reduce inventory pressure, factory production reduction and shutdown increased. In the short term, due to the weak cost support and weak demand, HFCs refrigerant prices are less likely to rise sharply. However, after the Spring Festival holiday, as factories resume rational production and marketing, and downstream demand recovers, refrigerant prices will slowly return to rational levels.
Fluoropolymer: the market is light at the end of the year and the price is under pressure to maintain stability
The fluoropolymer market continued the off-season market at the end of the year. The factory reduced production, guaranteed price and low load production. The overall demand for downstream on-demand procurement was weak. The VDF series and TFE series were contracted before and after the Spring Festival, and the price was weak and stable. From the perspective of products, the production and marketing pressure of TFE series is transmitted upstream due to the poor production and marketing. The price of raw material use R22 drops slightly. The cost support of related products PTFE FEP HFP fluororubber is slightly weakened. The VDF series products are still affected by the pressure of supply and demand and the pressure of cost, and the price fluctuates under pressure. Near the end of the year, fluoropolymer plants have more load reduction and less complete shutdown for maintenance. There are also factories that carry out annual overhaul during the Spring Festival. The fluoropolymer market is weak and stable around the Spring Festival, and the price will also be mainly pressured and stable.
Fluorine-containing lithium salt: near the Spring Festival holiday, the market supply and demand are shrinking, and the price is weak and stable
This week, the domestic lithium carbonate price weakened in a narrow range, the downstream electrolyte market shipments were also reduced, the cost control was relatively strict, the profit space of lithium fluoride salt enterprises was limited, and the price was temporarily stable. It is estimated that the tight supply pattern of raw materials will continue, but most of the operators are bearish in the future, and near the Spring Festival, there are few new orders in the market, and short-term prices may still be weak. The production capacity under construction of lithium hexafluorophosphate and lithium difluorosulfonate met with centralized release in the early stage. The nominal capacity of the site was surplus, and the production was mostly scheduled according to demand. As the Spring Festival holiday approaches, the number of delisted enterprises increases, and under the pressure of weak demand, the overall operating load of supply devices has been reduced, and the overall supply of goods in the market will continue to be loose. Subsidy decline has overdrawn the consumption capacity of some new energy vehicles in advance. Downstream electrolyte and battery companies have negative views on the future market, and the production scheduling has been reduced. It is expected that the short-term lithium salt industry chain will remain weak.
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News of the week
cryogen
Issuance of production and use quotas of ozone-depleting substances in 2023
Fluoropolymer
Zhongxin Fluorine Materials Project will enter the pilot production stage in the first half of 2023
Zhonghao Chenguang plans to build 10000 tons of PVDF resin and 3000 tons of special FKM project
Lithium fluoride salt
Guotai Huarong's production line project with an annual output of 300000 tons of electrolyte and recovery of 2000 tons of solvent started
Yongtai Technology's 150000 t/a electrolyte project was officially put into operation
Tianji Co., Ltd.: The 10000-ton lithium hexafluorophosphate unit expanded by the company has entered mass production
cryogen
Issuance of production and use quotas of ozone-depleting substances in 2023
On December 22, 2022, the General Office of the Ministry of Ecology and Environment issued the Notice on Approving and Issuing the Production and Use Quota of Ozone Depleting Substances in 2023.
The Notice approved and issued the production quota of hydrochlorofluorocarbons in 2023 for 17 units including Zhejiang Sanmei Chemical Co., Ltd., the use quota of hydrochlorofluorocarbons in 2023 for 28 units including Zhuhai Gree Electric Co., Ltd., and the use quota of carbon tetrachloride in 2023 for 8 units including Li'an Longbohua (Tianjin) Pharmaceutical Chemical Co., Ltd. Among them, the production quota of HCFCs in 2023 was reduced from 292795 tons in 2022 to 214814 tons, a decrease of about 26.6%.
Fluoropolymer
Zhongxin Fluorine Materials Project will enter the pilot production stage in the first half of 2023
On January 9-10, Zhongxin Fluorine Materials (002915. SZ) said that the equipment of the project with an annual output of 5000 tons of 4,4-difluorodiphenyl ketone in Zhejiang Base was being installed. Due to the epidemic situation, the installation process was affected to some extent. It was expected to start trial production after the installation was completed in March 2023. The first phase of the expansion project of the series of fluorofine chemicals in Fujian base - an annual output of 5000 tons of fluorobenzene is planned to be put into trial production after the Spring Festival; The project with an annual output of 30000 tons of electronic grade hydrofluoric acid is planned to be put into trial production in May 2023; The technical transformation of the first production line of the project of expanding the production of 40000 tons of anhydrous hydrogen fluoride to 70000 tons has been completed. After the Spring Festival, the technical transformation of the other two lines began. The technical transformation of all three lines was completed in April 2023.
Zhonghao Chenguang plans to build 10000 tons of PVDF resin and 3000 tons of special FKM project
On January 6, the website of the People's Government of Yantan District publicized the 10000 t/a PVDF resin, 3000 t/a special FKM and supporting projects proposed by Zhonghao Chenguang (Zigong) Fluorine Materials Co., Ltd.
According to the publicity, the project is located in the South Sichuan New Material Chemical Industry Park in Zigong, and is invested and constructed by Zhonghao Chenguang (Zigong) Fluorine Materials Co., Ltd. It is understood that Zhonghao Chenguang (Zigong) Fluorine Materials Co., Ltd. is a wholly-owned subsidiary of Zhonghao Chenguang Chemical Research Institute Co., Ltd.
Lithium fluoride salt
Guotai Huarong's production line project with an annual output of 300000 tons of electrolyte and recovery of 2000 tons of solvent started
According to the information released by the development and reform of Zigong, on January 3, the Zigong sub-venue of the on-site promotion of major projects in the first quarter of 2023 in Sichuan Province was held in the South Sichuan New Materials Industrial Base of the Yantan High-tech Industrial Park. On the same day, 104 projects with a total investment of 37.5 billion yuan were started.
It is reported that the representative project of this activity, Zigong Guotai Huarong's 300000 tons of electrolyte and 2000 tons of solvent recovery production line project, has a total investment of 1.5 billion yuan. It will mainly build 70000 square meters of production plants and warehouses, 16000 square meters of office space, 8000 square meters of auxiliary rooms, and 24 electrolyte production lines and 3 solvent recovery lines. After completion, it is expected to achieve an annual output value of 13.8 billion yuan.
Yongtai Technology's 150000 t/a electrolyte project was officially put into operation
A few days ago, Zhejiang Yongtai New Energy Materials Co., Ltd., a wholly-owned subsidiary of Yongtai Technology (002326), with an annual output of 150000 tons of electrolyte, was officially put into operation in Taizhou Bay Economic and Technological Development Zone, Zhejiang Province, with an annual output value of 6 billion yuan.
It is reported that the first pile of Yongtai Technology's 150000 tons/year electrolyte project will be completed in March 2022, the civil engineering will be completed in June, the equipment installation will be completed in September and put into production in December. Yongtai Technology was put into operation in the same year, and the speed of Yongtai Technology is constantly refreshing.
With the rapid development of new energy vehicles, upstream lithium battery materials are in short supply, and electrolyte is one of the important components of lithium battery. In order to seize the market opportunity and improve the core competitiveness of the company's lithium battery material sector, Yongtai Technology uses part of the original plant and supporting facilities to layout the electrolyte field. Yongtai Technology's 150000 t/a electrolyte project plans to invest a total of 400 million yuan to build digital production workshops, utility buildings and related supporting storage facilities.
Tianji Co., Ltd.: The 10000-ton lithium hexafluorophosphate unit expanded by the company has entered mass production
On January 7, Skyline (002759) said on the investor interaction platform that at present, the 10000-ton lithium hexafluorophosphate plant expanded by the company has entered mass production, the 3000-ton expansion project is still in preparation, and the project has completed the preliminary project approval and environmental assessment and safety review approval.
Previously, on August 23, 2022, Skyline announced that the production unit of lithium hexafluorophosphate with an annual output of 10000 tons invested and constructed by the wholly-owned subsidiary Jiangxintai Materials Co., Ltd. entered the trial production stage in the second quarter of 2022. The production unit with an annual output of 10000 tons of lithium hexafluorophosphate has been put into trial production, and the product has been certified by customers.
