Fluorochemical Weekly Briefing: Demand gradually recovers, refrigerant boom rebounds
onemarket conditions
Refrigerant: Robust cost support, coupled with tight supply, refrigerant boom rebounds
This week, the supply cost support for the refrigerant market was robust and the overall supply was tight, with mainstream products maintaining stability and exploring growth. Weekly market characteristics: demand for raw materials such as methane chloride and calcium carbide has weakened, and prices have fluctuated in a narrow range; The supply of tetrachloroethylene is tight due to the impact of Binhua's overhaul, leading to a price increase; The contradiction between supply and demand of liquid chlorine, methanol, and sulfuric acid has been alleviated, and prices have all increased by varying degrees; Maintain stable operation of other raw material prices; The cost of refrigerant is expected to rise strongly in the future. In the short term, the refrigerant market is currently undergoing a transition from the off-season to the peak season, with the pre sales, after sales, and domestic and foreign markets slowly recovering. However, the factories are taking on single row production, the industry's operating rate is low, the overall supply is tight, and the cost trend is showing an upward trend, all of which form a strong support for the recovery of refrigerant prices. Moreover, as the temperature rises, the refrigerant will usher in the peak demand season, and practitioners are optimistic about the future market.
Fluoropolymers: Market Supply and Demand Double Increase Price Consolidation under Pressure
This week, the mainstream products in the fluoropolymer market continued to reduce production and maintain prices on the supply side, while the demand side was repaired and consolidated. The product prices were dismal and stable. From a product perspective, currently, TFE series and VDF series have limited cost side support, coupled with insufficient overall demand, increasing supply and demand pressures have led to reduced profits, and product prices are approaching the cost line, facing pressure for losses. It is worth noting that fluorine materials, with their excellent performance, have numerous downstream applications in industries such as 5G 6G communication, military industry, aerospace, environmental protection, wind power, photovoltaic, lithium battery, energy storage, fluorine medicine, fluorine pesticide, and other popular industries, which may become a new growth point in the industry.
Fluorine-containing lithium salts: Demand growth is minimal, and device losses are shuffled
This week, costs continued to weaken, downstream raw material inventories were further consumed, and inquiries for lithium fluoride salt plants increased. However, there was insufficient willingness to trade, and shipments were still mainly made at reduced prices. In the raw material sector, new orders for lithium carbonate on the market are limited, and the downward trend in prices remains unchanged. The weak market environment has consolidated the buyer's wait-and-see mentality, and the terminal new energy vehicle market has reopened its price war. Under demand pressure, electrolyte and battery manufacturers have increasingly attached importance to cost control, consuming more of their own raw material inventory and waiting for market changes, while a small number of new energy vehicles require ordering. In terms of supply, lithium hexafluorophosphate production capacity is relatively abundant, and production enterprises face fierce competition, operating at a loss to ensure market share and shipment volume. Overall, it is expected that there will be a small increase in the upstream lithium carbonate supply, but there are few transactions on the market. The downward trend of prices in the next two weeks may slow down. In terms of fluorinated lithium salts, demand is weak, the industry is losing money and reshuffling, and future prices may still be weak. It is expected that the downward trend of the market in late March may slow down due to the gradual consumption of downstream raw materials and the upward transmission of terminal orders.
twoWeekly Highlights
Fluorine raw materials
Zhejiang Zhuji Proposed Annual Output of 46000 tons of Fluorite Fine Powder Project
Anhui Shucheng Proposed Technical Transformation and Expansion Project of 20000 tons of Fluorite Mine
Fluoropolymer
Shao Wuyonghe Proposed 3000 t/a FEP Technical Transformation and Expansion Project
The civil engineering of the Hisford high-end fluorine fine chemicals project (Phase II) has been completed
Lithium fluoride salt
Perfluorodox: Industrialization of new lithium salts such as NAFSI is ongoing
Ruitai New Materials Discloses Progress of Several Lithium Battery Electrolyte Projects
Wenzhou Proposed New Energy Battery Material Industrial Park
Shenghua New Materials plans to raise no more than 4.5 billion yuan to expand production of electrolyte, wet electronic chemicals, and other projects
Fluorine raw materials
Zhejiang Zhuji Proposed Annual Output of 46000 tons of Fluorite Fine Powder Project
On March 2, the website of the People's Government of Zhuji City, Zhejiang Province announced the annual production of 46000 tons of fluorite refined powder project of Zhuji Furongshan Trading Co., Ltd.
According to the public announcement, the project is located in Wuzao Natural Village, Wuxin Village, Huangshan Town, Zhuji City, with a total investment of 86.5 million yuan. Advanced domestic equipment such as fully automatic diaphragm press compressors, single spiral classifier, and flotation machines are purchased, and advanced production processes are introduced. After the completion of the project, 100000 tons of raw fluorite ore will be processed annually (50000 tons from the company's own mine, and the remaining 50000 tons from the fluorite mine in Huangjiadian Mining Area, Huangshan Town, Zhuji City, Zhejiang Province), The annual output of the project is 46000 tons of fluorite refined powder.
Anhui Shucheng Proposed Technical Transformation and Expansion Project of 20000 tons of Fluorite Mine
On March 15th, the website of Shucheng County Ecological Environment Branch announced the technical renovation and expansion project of Xinjie Fluorite Mining Co., Ltd. with an annual output of 20000 tons of fluorite open-pit mining.
According to the public announcement, the project is located in Shucheng County, Anhui Province, with a total investment of 11.6244 million yuan. It is proposed to expand the original 15000 tons/year fluorite mining capacity to 20000 tons/year through technical transformation. The expected design service life is 8.2 years, and the remaining engineering service life of the original project is until November 26, 2023.
Fluoropolymer
Shao Wuyonghe Proposed 3000 t/a FEP Technical Transformation and Expansion Project
On February 22nd, Shao Wuyonghe's annual production of 3kt of perfluoroethylene propylene technical renovation and expansion project was announced. The project is planned to invest 37.5 million yuan and be located in the existing factory area of Jintang Industrial Park in Shaowu City, adding 3000 tons/year of FEP resin.
The new project relies on the existing plant in the first phase of the project, while the raw material section, recovery section, and electrolytic fluorine production section rely on the existing equipment in the first phase. The equipment in the reaction section, post treatment section, and surface treatment section are newly added separately, and some environmental protection projects have newly added treatment facilities and undergone technical transformation.
The civil engineering of the Hisford high-end fluorine fine chemicals project (Phase II) has been completed
Recently, Sanming Daily reported that the civil engineering work of the high-end fluorine fine chemicals project (Phase II) of Hisford has been completed and indoor work is under way.
It is understood that the total investment of this project is 670 million yuan, mainly constructing 19 production lines, including 2800 tons/year of hexafluoroethylene oxide, 2800 tons/year of hexafluoroacetone trihydrate, and 2100 tons/year of hexafluoroisopropanol, with a total of 19200 tons of fluorine fine chemicals and 30000 tons of lithium ion electrolyte. The project is planned to be completed by the end of 2023. After mass production, the project can increase output value by 2.3 billion yuan and tax revenue by 200 million yuan.
Lithium fluoride salt
Perfluorodox: Industrialization of new lithium salts such as NAFSI is ongoing
On March 10th, Dofluoro introduced on the investor interaction platform that the company currently has a production capacity of 55000 tons of lithium hexafluorophosphate, and its sales volume and production and sales ratio are among the top in the industry. At the same time, Dofluro stated that the company is conducting industrialization work on new lithium salts such as NAFSI.
In addition, Dofluoro also emphasized that solid state batteries require solid electrolyte, and the company has some forward-looking research and reserves, but there is still a long way to go for the commercialization of pure solid state batteries.
Ruitai New Materials Discloses Progress of Several Lithium Battery Electrolyte Projects
On March 9, Ruitai Xincai disclosed during the research of the reception agency:
The expansion project of Huarong Chemical from 30000 tons/year to 100000 tons/year battery electrolyte has now completed civil engineering construction and equipment installation, and is in the commissioning and acceptance stage. It is about to undergo trial production;
Quzhou Ruitai Project with an annual output of 300000 tons of lithium ion battery electrolyte, Quzhou Chaowei New Project with an annual output of 2100 tons of lithium battery materials, Zigong Guotai Huarong Project with an annual output of 300000 tons of lithium ion battery electrolyte, and Zhangjiagang Chaowei Xinneng Project with an annual output of 4000 tons of lithium battery/supercapacitor electrolyte materials and 5737.9 tons of chemical raw materials (by-products) are currently in the civil construction stage;
Ningdehua Rong's annual production of 80000 tons of new materials project has been completed and put into use;
Ningdehua Rong's annual production of 400000 tons of lithium ion battery electrolyte project is undergoing preliminary preparation work, and currently undergoing environmental and safety assessment work, but has not yet been formally constructed;
The newly built Prussice project with an annual output of 40000 tons/year of lithium ion power battery electrolyte in Poland Huarong has been completed and put into use, mainly affected by the market. Currently, the production of Poland Huarong is slowly climbing;
Poland Huarong Lithium Ion Battery Electrolyte Project with an annual output of 260000 tons has not started construction.
Wenzhou Proposed New Energy Battery Material Industrial Park
According to Qingshan Industrial News, on March 9th, the Wenzhou New Energy Battery Materials Industrial Park, jointly built by Yongqing Shares, a subsidiary of Qingshan Industrial, and new energy enterprises such as Greenway, Weiming Environmental Protection, and New Zebang, was officially signed.
Wenzhou New Energy Battery Material Industrial Park is proposed to be located in Dongtou District, Wenzhou City, Zhejiang Province. The project has a planned land area of about 925 mu, with a total investment of about 8 billion yuan. The industrial park will build a high purity lithium carbonate material base, a nickel cobalt manganese sulfate crystal material base, an electrolyte material base, and a cogeneration energy base, and attract industrial chain projects such as graphene anode materials, membrane materials, and lithium iron phosphate. After the industrial park is put into operation, the estimated annual output value will reach 30 billion yuan, driving the upstream extension of Wenzhou's new energy battery industry.
Shenghua New Materials plans to raise no more than 4.5 billion yuan to expand production of electrolyte, wet electronic chemicals, and other projects
On the evening of March 13, Shenghua New Materials issued a public announcement. On the same day, the company received the "Notice on Accepting Applications for Securities Issuance by Shenghua New Materials Group Co., Ltd. Listed Companies on the Shanghai Stock Market Main Board" (SZSS (Refinancing) [2023] No. 97) issued by the Shanghai Stock Exchange. The Shanghai Stock Exchange verified the prospectus and relevant application documents submitted by the company for securities issuance by listed companies on the Shanghai Stock Market Main Board in accordance with relevant regulations, Considering that the application documents are complete and in accordance with the legal form, it is decided to accept them and conduct review according to law.
According to the data, Shenghua New Materials plans to raise no more than 4.5 billion yuan this time, which will be used for the 300000 ton/year electrolyte project (Dongying), 200000 ton/year electrolyte project (Wuhan), 220000 ton/year lithium battery material production and development integration project, 100000 ton/year liquid lithium salt project, 11000 ton/year additive project, 50000 ton/year wet electronic chemical project, and 30000 ton/year silicon based negative electrode material project after deducting the issuance expenses, And replenish working capital.
