Fluorochemical Weekly Briefing: Excessive Supply Growth, Gradually Slowing Demand, and Price Fluctuation
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market conditions
Refrigerant: Demand for domestic and foreign sales slows down and stabilizes, mainly on a wait-and-see basis
This week, the supply and demand of the refrigerant market remained stable, and mainstream products stabilized their operation. Weekly market characteristics: The supply of fluorite powder is tight, and the price center is moving up in a narrow range; Under the supply and demand game of methane chloride, prices fluctuate in a narrow range; The supply and demand of trichloroethylene and tetrachloroethylene are weak, and prices remain stable; Other raw material products have been affected by weak demand, and prices have declined in a narrow range; Overall, the production and sales of refrigerants in the market are weak, leading to an increase in inventory pressure from upstream manufacturers and a widespread phenomenon of price reductions for shipments. At present, there is still no significant increase in the refrigerant export market, and the recovery is less than expected. It is worth noting that this year is a rare double spring leap in February, with lower temperatures throughout the year and higher temperatures coming later than usual. Therefore, the downstream air conditioning production and sales peak season will be delayed, and the domestic market demand will increase relatively slowly. Overall, the operating rate of the refrigerant industry is not high, there is no significant improvement on the demand side, and the market has a strong wait-and-see atmosphere.
Fluoropolymers: Rapid Supply Growth Accelerates Industry Shuffle Price Fluctuation
This week, the fluoropolymer market has had flat trading, and the prices of products with rapid supply growth have accelerated the decline, with obvious upstream and downstream linkage characteristics. The production side of popular products such as PVDF and lithium hexafluorophosphate has seen a significant expansion in factories, while the demand side has been affected by the reduction in production and sales of automobiles, photovoltaics, coatings, and a slowdown in growth rate. Overall demand is relatively insufficient, coupled with the continuous decline in prices of major monomers such as TFE, VDF, and HFP. The cost decline is also an important reason for the collective decline in volume and price in the industrial chain. Practitioners often hope for the recovery of demand in popular industries such as 5G/6G communication, military industry, aerospace, environmental protection, wind power, photovoltaics, lithium batteries, energy storage, fluorinated pharmaceuticals, fluorinated pesticides, etc., and the multi point flowering growth to alleviate the supply-demand contradiction.
Fluorinated lithium salt: Cost pressure forces production equipment to reduce load and slow down market downward trend
This week, the price of lithium carbonate weakened, and downstream demand did not increase. However, as product prices fell to a low level and downstream inquiries increased, manufacturers had a price attitude due to cost pressure, and the downward trend of the fluorinated lithium salt market slowed down. In terms of cost, buyers of lithium carbonate often adopt small orders and frequent restocking to avoid losses, resulting in a large accumulation of inventory in production enterprises and a continuous decline in prices. In terms of supply, lithium hexafluorophosphate has significant cost pressure, relatively abundant production capacity, and fierce competition among production enterprises. Some transactions have experienced price inversion, and the operating load of the device has been reduced, leading to a mentality of favoring prices among enterprises. The operating load of downstream power batteries remains low, and the growth in the energy storage field is also stagnant. Overall demand is weak, and raw material prices are strictly controlled. Industry Online predicts that as the price of lithium carbonate gradually drops to downstream psychological expectations, there will be an increase in inquiries from fluorinated lithium salt mines. However, downstream orders are not willing to avoid losses, and future prices may still decline narrowly, but the decline may slow down.
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Weekly Highlights
Fluorine raw materials
Anhui Bengbu plans to build projects such as 40000 tons of electronic grade hydrofluoric acid and 40000 tons of chemically pure hydrofluoric acid
Henan releases geological exploration results and recommends 11 fluorite projects
cryogen
Yonghe Shares: The Yonghe New Materials Project in Baotou Held a Commencement Ceremony
Fluoropolymer
Linxiang City Signed a Contract with Suzhou Fuhydrogen 5 Billion Fluorine Containing New Materials Project
The 500 ton tungsten hexafluoride project in Ulanqab has officially started construction
Fluorinated lithium salt
In 2022, the net profit of Duofluduo was 1.948 billion yuan, a year-on-year increase of 54.64%
Tianci Materials' net profit in 2022 was 5.714 billion yuan, a year-on-year increase of 158.77%
Baoli New plans to acquire 51% equity of Wuxi Xupu to accelerate the development of energy storage business
Jinhui Co., Ltd. Yancheng Annual Production of 200000 tons of Electrolyte Project Commences
Fluorine raw materials
Anhui Bengbu plans to build projects such as 40000 tons of electronic grade hydrofluoric acid and 40000 tons of chemically pure hydrofluoric acid
On April 12th, the website of the Natural Resources and Planning Bureau of Bengbu City announced the annual production of 40000 tons of electronic grade hydrofluoric acid, 40000 tons of chemically pure hydrofluoric acid, and 45000 tons of etching solution by Anhui Furixing Chemical Co., Ltd.
According to the public announcement, the project is located in Huaishang District, Bengbu City, Anhui Province, with a total investment of 359.0049 million yuan. It is planned to be divided into two phases: the first phase of the project involves the construction of one chemical pure hydrofluoric acid production line with an annual output of 40000 tons, and one etching liquid production line with an annual output of 45000 tons, along with supporting production facilities such as office buildings and public auxiliary buildings; The second phase of the project will construct an annual production line of 40000 tons of electronic grade hydrofluoric acid, with an estimated annual output value of 830 million yuan after completion.
Henan releases geological exploration results and recommends 11 fluorite projects
On April 12th, the Henan Provincial Financial Geological Exploration Results Promotion Conference was held in Zhengzhou. A total of 76 exploration results were released to the society, including 11 fluorite projects.
From the trading situation of mining rights in recent years, there has been a great demand in the fluorite market, and bidding companies are very active. Currently, the fluorite exploration rights that the provincial financial geological exploration project is preparing to launch have a high level of attention. The 11 fluorite projects recommended this time are distributed in cities such as Luoyang and Nanyang. Among them, 8 projects have reached the level of reconnaissance and exploration. Overall, the technical risk of further exploration and development is relatively small, and the possibility of bidding for more than the evaluated value of the results is high.
cryogen
Yonghe Shares: The Yonghe New Materials Project in Baotou Held a Commencement Ceremony
According to Yonghe Corporation, on April 15th, the project commencement ceremony of Baotou Yonghe New Materials Co., Ltd. was held at the construction site of the Jiuyuan Industrial Park project. The project plans to invest a total of 10 billion yuan and will construct 13 production units and public supporting facilities, producing 16 types of products. The company will take the lead in achieving the strategic layout of the fourth generation refrigerant field through this project construction, and assist in the rapid development of industrialization and scale of the fourth generation refrigerant in China.
On the evening of March 20th, Yonghe Shares announced that its wholly-owned subsidiary, Baotou Yonghe New Materials, plans to sign a "Project Investment Agreement" with the People's Government of Jiuyuan District, Baotou City, Inner Mongolia Autonomous Region to invest in the construction of the "Baotou Yonghe New Energy Materials Industrial Park Project" and deploy the fourth generation refrigerant.
According to the announcement, the construction period of the project is 48 months, including a 400000 ton/year waste salt comprehensive utilization device, a 240000 ton/year methane chloride device as the basic raw material for the entire plant. Subsequently, a 120000 ton/year HCFC-22 device, a 60000 ton/year TFE device, a 48000 ton/year HFP device, and a 50000 ton/year HCC-240fa device will be constructed in the middle reaches as intermediate products. Downstream construction of 20000 tons/year HFO-1234yf device, 23000 tons/year HFO-1234ze device for co production of HCFO-1233zd device, 10000 tons/year perfluorohexane device, 180000 tons/year chloroform device, 250000 tons/year calcium chloride device, 50000 tons/year synthetic ammonia device, and 60000 tons/year vinyl chloride device.
Fluoropolymer
Linxiang City Signed a Contract with Suzhou Fuhydrogen 5 Billion Fluorine Containing New Materials Project
On the evening of April 4th, Linxiang City held a project signing ceremony with Suzhou Fuhydrogen Hydrogen Technology Co., Ltd. According to public information, the project will be constructed in two phases. The first phase mainly involves the construction of units with an annual production capacity of 20000 tons of difluoromethane (R22), 10000 tons of tetrafluoroethylene (TFE), 10000 tons of tetrafluoroethylene copolymer, and supporting public and auxiliary projects. In the second phase, a 10000 ton lithium hexafluorophosphate plant, a 10000 ton PVDF plant and a 10000 ton lithium difluorosulfonate imide (LiSFI) plant will be constructed. From the perspective of construction content, the project has relatively complete self matching of raw materials, and the stability of product supply after completion is relatively high.
It is understood that Suzhou Fuhydrogen Hydrogen Technology Co., Ltd.'s business scope includes the research and development of new material technology; New material technology promotion services; Research and development of emerging energy technologies; The production of battery spare parts, etc., therefore the main application of this project's products may be in the field of batteries.
The 500 ton tungsten hexafluoride project in Ulanqab has officially started construction
On March 31st, the groundbreaking ceremony for the Nanda Optoelectronic Tungsten Hexafluoride Project was held in Jining District, Ulanqab City, Inner Mongolia. It is reported that Ulanqab Nanda Microelectronic Materials Co., Ltd. has a total investment of 150 million yuan in the annual production of 500 tons of tungsten hexafluoride project. The main construction includes a tungsten hexafluoride factory building, a tungsten hexafluoride warehouse, supporting control rooms, distribution rooms, laboratories, etc., with an annual production of 500 tons of tungsten hexafluoride.
According to the data, Ulanqab Nanda Microelectronic Materials Co., Ltd. is a subsidiary of Nanda Guang Electric Control Co., Ltd. On December 10, 2021, Nanda Optoelectronics announced that it would invest 12 yuan in the construction of a high-purity fluorine electronic material project in the Bayin area of Chahar Economic and Technological Development Zone. The main projects include an annual production of 7200 tons of nitrogen trifluoride, 500 tons of tungsten hexafluoride, and 1000 tons of hexafluoroethane tetrafluorocarbon co production.
Fluorinated lithium salt
In 2022, the net profit of Duofluduo was 1.948 billion yuan, a year-on-year increase of 54.64%
On the evening of March 22nd, multifluorodox (002407) disclosed its annual report. In 2022, the company achieved a revenue of 12.358 billion yuan, a year-on-year increase of 58.47%; The net profit attributable to the parent company was 1.948 billion yuan, a year-on-year increase of 54.64%.
Duofuduo stated that the main reason for the increase in operating performance in 2022 is that, under the influence of the continuous growth in demand in the new energy industry, the company seized opportunities, overcame the adverse effects caused by the continuous rise in raw material prices, and continuously expanded the investment of new material production capacity, resulting in a significant increase in sales, and further improved revenue and profitability.
Tianci Materials' net profit in 2022 was 5.714 billion yuan, a year-on-year increase of 158.77%
On the evening of April 10th, Tianci Materials (002709) disclosed its 2022 annual report. In 2022, the company achieved a revenue of 22.317 billion yuan, a year-on-year increase of 101.22%; The net profit attributable to shareholders of the listed company was 5.714 billion yuan, a year-on-year increase of 158.77%.
The annual report shows that in terms of lithium ion battery materials, in view of the tight supply of lithium salts, solvents, additives and other upstream materials of lithium batteries in 2021, God sent materials seize the opportunity to adjust the capacity of internal electrolyte and self-produced key raw materials in a timely manner in 2022, and successfully expand the production of lithium hexafluorophosphate, lithium difluorosulfonate imide (LiFSI), lithium difluoroxalate borate (LiODFB) and other electrolytes and additives. The new electrolyte production capacity has been put into operation and released as scheduled, ensuring that products can be produced and delivered on time, supporting the rapid growth of the company's electrolyte sales.
Baoli New plans to acquire 51% equity of Wuxi Xupu to accelerate the development of energy storage business
On April 11th, Poly New released a major asset purchase plan, proposing to acquire 51% of Wuxi Xupu's equity held by Wu Keke through cash payment. After the completion of this transaction, the listed company will hold 51% equity in Wuxi Xupu, which will become the controlling subsidiary of the listed company.
The target company Wuxi Xupu mainly provides energy storage battery systems for household and small industrial and commercial users. In recent years, benefiting from the development of the overseas home energy storage market, relying on the accumulation of technological resources and repeated product validation, we have gained a certain market position in the overseas home energy storage market, with good product reputation and strong profitability.
According to Pauli's new analysis, the company's lithium battery products are mainly aimed at the light power field, and the scale of its energy storage business is relatively small. However, the energy storage battery market in China is still in its early stages, but benefiting from active industrial policies and the rapid growth of the energy storage market, the shipment volume of energy storage batteries in China has rapidly increased. With the continuous decline in lithium battery costs and the gradual maturity of energy storage application scenarios, it is expected that the energy storage battery market will experience further growth in the future. Through this restructuring, it is beneficial for the company to accelerate the development pace of energy storage business and seize the strategic opportunity period of energy storage business development.
Jinhui Co., Ltd. Yancheng Annual Production of 200000 tons of Electrolyte Project Commences
According to Binhai Rong Media, on April 7th, the centralized commencement of the project in Binhai County, Yancheng, Jiangsu and the commencement of the Yancheng Jinhui Battery Electrolyte Project were held at the Binhai Industrial Park in Binhai County. There are a total of 17 centralized construction projects in Binhai County this time, with a total agreed investment of 7.25 billion yuan.
Among them, the Jinhui project has a total investment of 1 billion yuan to develop high-quality new energy battery electrolytes, which will play a key leading role in accelerating the cultivation of the power battery industry chain in Binhai County. The project is planned to cover an area of 102 acres and produce 200000 tons of lithium battery electrolyte annually.
