Fluorochemical Weekly Report: Market demand is waiting to be repaired, and the industry's prosperity is also bottoming out

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One week market

Refrigerant: Raw materials fall more, rise less, market pressure consolidation operation

This week, the demand for refrigerants in the market is weak, and prices are under pressure to consolidate and operate. Weekly market characteristics: Affected by the weak production and sales in the industry, the prices of basic raw material products have increased or decreased, with tetrachloroethylene prices declining by 10%; Overall, the trading volume in the raw material market is poor, with prices mainly fluctuating in a narrow range. From a product perspective, HCFC-22 is limited by quota management and overall supply is limited. As temperatures rise, demand will significantly boost. Due to insufficient new demand and large market inventory, HFCs refrigerant products are still in the stage of demand recovery, and the market lacks positive support. They will continue to consolidate and operate in the short term.

Fluoropolymers: The weak consolidation of upstream and downstream production and sales will continue

This week, the fluoropolymer market continued to shrink and maintain a stable trend, with factories reducing production to maintain prices and bidding for shipments. The prices of mainstream products are generally gathering momentum at the bottom. From a product perspective, due to the overall weak domestic and foreign demand, the prices of TFE, VDF, HFP monomers and corresponding upstream monomer raw materials R22 and R142b in fluorinated polymers are all under pressure, and falling below the cost line may be beneficial for the market to establish a bottom and stabilize. From the perspective of demand market, industries such as automobiles, coatings, wind power, machinery, aerospace, and environmental protection have a slow growth rate of around 10%; Popular industries such as semiconductors, photovoltaics, lithium batteries, energy storage, fluorinated pharmaceuticals, and fluorinated pesticides continue to grow rapidly, with a growth rate of around 30%. In summary, the weak pattern of oversupply in the short-term fluoropolymer market is difficult to reverse, and the trend of consolidation at the bottom will continue.

Fluorinated lithium salts: Low price sources on site are difficult to find, and downstream fluctuations accept price increases

This week, the starting load of Lithium carbonate was reduced by a narrow margin, the demand increase of downstream battery plants was obvious, and there was a high intensity game between supply and demand on the site. Stimulated by the rising price of Lithium carbonate and the limited inventory of downstream raw materials, Lithium fluoride manufacturers are again holding up their prices. Lithium hexafluorophosphate enterprises gradually accept the high price Lithium fluoride, and the impact of insufficient raw materials on the commencement of construction has basically faded, and the overall shipment is smooth. The profit margin of downstream electrolyte and positive electrode material factories has narrowed, and production is relatively cautious, with lithium salt mainly purchased in demand. Overall, with the recovery of demand in the energy storage field, the price of the lithium salt industry chain has resumed its upward trend. The supply side is holding onto the market while the demand side is watching the market. There is a fierce game between supply and demand on the market. Industry Online predicts that under the influence of human factors, spot prices on the market will be tight, and downstream companies will passively accept high priced raw materials. However, as raw material inventory gradually accumulates and the game on the market intensifies, there may still be a possibility of an increase in the price of fluorinated lithium salts.

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Weekly Highlights

Fluorine raw materials

Ruijin City, Jiangxi Province plans to expand the 30000 ton annual fluorite mine project

On June 5, the website of Ruijin Administrative Examination and Approval Bureau announced the fluorite mining expansion project of Ruijin Guanhua Mining Co., Ltd. According to the publicity, the total investment of the project is 7.3748 million yuan, which is located in Gouyun Mountain, Xiefang Village, Xiefang Town, Ruijin City, Jiangxi Province. The estimated construction time is 12 months. After the completion of the project, the mining scale expanded from the original 10000 tons/year to 30000 tons/year of fluorite ore. As of March 31, 2020, the mining license of the Gouyunshan mining area has a fluorite resource reserve (122b+333) of 146.09kt of ore and 71.20kt of CaF2, with a total service life of 3.94 years.

Jiangxi Jiujiang plans to expand the 30000 ton annual fluorite mining project

On May 24, Jiujiang De'an Ecological Environment Bureau announced the Surface mine reconstruction project of Pengshan fluorite mine and Liangjiashan fluorite mine in De'an County.

The publicity shows that the total investment of the project is 29.2772 million yuan, which is located in Pengshan Forest Farm, De'an County, Jiujiang City. When the project is completed, it will form a fluorite mining scale of 30000 tons/year.

Fluoropolymer

The Ruyuan East Sunshine Annual Production of 10000 tons of PVDF Project is expected to be put into operation by the end of 2023

On June 2, the website of Shaoguan Ecological Environment Bureau announced the 10000 t/a PVDF and 27000 t/a R142b projects of Ruyuan East Sunshine Fluorocarbon Co., Ltd.

According to the public announcement, the total investment of the project is 572 million yuan, located in the New Materials Industrial Park of Guangdong Ruyuan Economic Development Zone. The project has a construction period of 12 months and is expected to be put into operation in December 2023. This project aims to expand its annual production capacity of 10000 tons of PVDF and support a production capacity of 27000 tons of raw material R142b. In the supporting raw material production capacity, 9000 tons provide raw materials for the already put into production 5000 tons/year PVDF, and an additional 18000 tons provide raw material support for the expanded 10000 tons PVDF production capacity. After the project is put into operation, the total production capacity of PVDF in the factory will reach 250 million tons/year.

Qianjiang plans to have an annual production capacity of 120 tons of high-purity hexafluorobutadiene gas

On June 5th, the website of Qianjiang Ecological Environment Bureau announced the Hubei Electronic New Materials Project of Guangzhou Iron and Steel Gas. According to the public announcement, the project is constructed by Hubei Guanggang Gas Electronic Materials Co., Ltd., located in the Optoelectronic Information Industrial Park of Qianjiang City. After completion, the project will form a production capacity of 120 tons/year of hexafluorobutadiene, including 100 tons/year of high-purity hexafluorobutadiene and 20 tons/year of ultra-high purity hexafluorobutadiene. Hexafluorobutadiene is applied in the semiconductor field for HAR structure chip etching. Compared with traditional plasma etching gas, hexafluorobutadiene has faster etching rate, higher etching selectivity, and high depth and width etching effect. However, currently the products mainly rely on imports, and the construction of this project will help promote the localization process of hexafluorobutadiene.

Fluorinated lithium salt

The 40000 t/a basic lithium salt integration project of Qinghai Salt Lake Potash started

On the morning of June 6, Qinghai Salt Lake Potash held the commencement ceremony of the 40000 t/a basic lithium salt integration project in Qinghai Lake District.

The total investment of the project is 7.098 billion yuan, and the annual output of 20000 tons of battery grade Lithium carbonate and 20000 tons of Lithium chloride will be completed in two years. The project uses the adsorption method to extract Lithium chloride from the old brine, which is divided into five process units, namely salt field and storage tank, adsorption lithium extraction, membrane refining and concentration, reaction precipitation lithium and Lithium chloride.

Recently, Qinghai Salt Lake Potash said during the survey of the reception agency that, in view of the market changes of Lithium carbonate in the first quarter, the company strengthened the connection between production and marketing in the second quarter, actively communicated with downstream customers, expanded sales channels, and increased sales efforts. In April, Lithium carbonate product sales have recovered, and will strive to complete the annual sales plan.

In addition, according to the news recently released by Qinghai Salt Lake Potash, the daily output of Lithium carbonate has increased to more than 100 tons. With the temperature rising, the output of Lithium carbonate will gradually increase. At the same time, the company has increased the extraction device in the recovery link of the mother liquor of lithium precipitation at the rear end of the Lithium carbonate extraction device, which will further improve the recovery rate of Lithium chloride and increase the output.

Signed contract for the project of producing 200000 tons of lithium battery cathode materials annually in Linwu, Hunan

According to the news from Linwu County Financial Media Center, on June 6, Linwu County, Chenzhou City, Hunan Province signed a contract with Shenzhen Qinya Holding Group Co., Ltd. for a lithium ion battery cathode material project, with a total investment of 8 billion yuan. The signing of the project will inject new strong momentum into the development of the whole lithium battery industry chain in Linwu County.

According to the data, Qinya Holding Group, a newly established company on May 8, 2023, is a comprehensive investment group committed to projects in the new energy industry. The cathode material project signed this time is planned to build a production line project of lithium ion battery cathode material with an annual output of 200000 tons in four phases. The first phase of the project is planned to cover an area of 200 mu and build a production line of Lithium iron phosphate cathode material with an annual capacity of 50000 tons, with an investment of 2 billion yuan, and strive to be completed and put into operation in May 2024.

In addition, Qinya Holding Group will also cooperate with Shanghai Anneng and Ganfeng Lithium to build a full industrial chain project of lithium ion batteries, and jointly build a full life cycle industrial chain of "lithium mine - Lithium carbonate - cathode materials - lithium batteries - lithium Battery recycling", forming a synergy effect of industrial alliances.

Guoxing Lithium's 10000t/a battery grade Lithium carbonate project was started

The news of Fenyi Industrial Park shows that on June 2, the commencement ceremony of Xinyu Guoxing Lithium Industry Co., Ltd.'s 10000 ton battery grade Lithium carbonate project was held in Fenyi Industrial Park, Xinyu City, Jiangxi Province.

It is reported that the total investment of the project is 1.2 billion yuan, covering an area of 90 acres, and the total construction time is 12 months. The project uses lithium ore as raw material to build a battery grade Lithium carbonate comprehensive utilization production line with an annual output of 10000 tons. When the project is put into operation, it will support the development trend of the national lithium battery new energy strategic planning, form an annual production scale of 10000 tons of battery grade Lithium carbonate, and support the lithium salt installation demand of 200000 new energy vehicles. It is expected to achieve sales revenue of 5 billion yuan, profits and taxes of 300 million yuan, and meet the employment demand of 200 people.

Huasheng Lithium Battery: VC and FEC fundraising projects are expected to undergo trial production in the second quarter of 2023

At a recent research activity and performance briefing, Huasheng Lithium (688353) stated that the company's current projects under construction mainly include fundraising projects for 6000 tons of VC products and 3000 tons of FEC products, 230 tons of other new additive materials, 500 tons of LIFSI projects, 40000 tons of CLEC projects, and 200000 tons of low energy and high-performance lithium battery negative electrode materials. The fundraising project is expected to undergo trial production in the second quarter of 2023, and other projects will also be completed for trial production between mid-2023 and 2024.