Fluorochemical Weekly Report: Oversupply Continues in the Market, with Prices generally Lowering
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One week market
Refrigerant: Rapid supply growth and weak demand in multiple fields accelerate industry reshuffle
This week, the production and sales of refrigerants in the market continued to be sluggish, with mainstream product prices fluctuating under pressure. Weekly market characteristics: Upstream basic raw material product prices fluctuate, with fluorite powder, hydrofluoric acid, and methane chloride all experiencing a narrow downward trend due to weak downstream demand; The transaction of methanol and calcium carbide has improved, and the price has risen within a narrow range; The prices of other raw materials and products are mainly maintained and consolidated. From the downstream market perspective, although the production and sales of household air conditioners and automobiles have increased by varying degrees, the refrigerant market is affected by the rapid supply growth in the industry and limited downstream demand growth. Factories generally reduce their production load, and the phenomenon of reducing production to ensure price and bidding for shipment coexist. In the short term, the pattern of oversupply is difficult to reverse, and due to insufficient support from domestic and foreign sales demand, the future is mainly under pressure for consolidation and operation.
Fluoropolymers: Intense supply-demand game leads to further cost compression and price fluctuations
This week, the fluoropolymer market continued to be weak and stable, with loose supply and declining costs being the main factors causing bearish market performance. From the perspective of the industrial chain, the fluctuation of upstream basic raw material prices and the loose supply of core organic fluorine monomers TFE, VDF, and HFP, as well as the price decline, directly lead to a downward trend in the prices of common fluoropolymers from the cost side; Secondly, although the supply and demand of common products PTFE, FEP, FKM, HFP, and PVDF have both increased, their growth rate is relatively slow compared to the supply side, with a growth rate of over 50% or even doubling. The demand side industries such as automobiles, coatings, wind power, machinery, aerospace, and environmental protection are growing slowly, with a growth rate of about 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, it is predicted that the future fluoropolymer market may absorb overcapacity at a low level, and the recovery of the demand market will depend on the global economic recovery.
Fluorinated lithium salts: Enterprises generally reduce prices to remove inventory, resulting in loose transaction prices
This week, the overall high start-up rate of lithium salts has stimulated the mentality of enterprises to ship to the warehouse, coupled with limited terminal consumption, resulting in weak overall prices. The prices of upstream raw materials Lithium carbonate and Lithium fluoride fell, and the cost support of Lithium hexafluorophosphate was insufficient. Under the shipping tone, hexafluoride enterprises control the operating load and strictly control inventory. Downstream electrolyte and positive electrode material factories are more cautious in production, and there is a certain accumulation of raw material inventory. On site, the overall performance of lithium salt supply is mainly loose. Industry Online predicts that production enterprises are starting to accumulate inventory, and traders are also increasing their shipment efforts. Many insiders are bearish, and the prices of lithium fluoride salts may continue to decline.
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Weekly Highlights
Fluorine raw materials
Shandong Linyi 72000 ton fluorite ball project put into operation
On June 26, the website of Luozhuang District People's Government of Linyi, Shandong Province announced the annual processing of 72000 tons of fluorite balls project of Linyi Changhe Metallurgical Charging Co., Ltd.
The publicity shows that the project is located in Fuzhuang Industrial Park, Fuzhuang Street, Luozhuang District, Linyi City, Shandong Province. The total investment of the project is 100 million yuan to build fluorite ball production lines, auxiliary facilities and utilities.
It is reported that the project was put into operation in June 2023, forming an annual production capacity of 72000 tons of fluorite balls.
The first phase of Wuchuan's annual production of 40000 tons of electronic grade hydrofluoric acid project has been capped
On June 11th, in the Fluorine Barium New Materials Industrial Park of Wuchuan Autonomous County, the main building of the production base of the 40000 ton electronic grade hydrofluoric acid phase I project of Wuchuan ZhongEurope Fluorine Electronic New Materials Co., Ltd. has been capped, and is busy with greening and equipment procurement work.
After the project is put into operation, it will produce 40000 tons of electronic grade hydrofluoric acid annually and 5000 tons of industrial grade hydrofluoric acid as a byproduct. The products will mainly be supplied to downstream fluorine chemical enterprises in the industrial park.
Electronic grade hydrofluoric acid is used for cleaning and etching of integrated circuits and Very Large Scale Integration chips. It is one of the key basic chemical materials in the production process of the microelectronics industry, and can also be used as analytical reagents and to prepare high-purity fluorinated chemicals.
Fluoropolymer
Longjiang Xitengwei Proposed Power Battery Adhesive, Insulation Materials, Fluoropolymer Project
On June 14, the Administrative Examination and Approval Bureau of Ganzhou City, Jiangxi Province announced the production project of power battery adhesive, insulating material and Fluoropolymer of Jiangxi Tengwei New Material Technology Co., Ltd.
The publicity shows that the project is located in Fukang Industrial Park, Longnan Economic and Technological Development Zone, Jiangxi Province. The total investment of the project is 450 million yuan. It will build a production line with an annual output of 20000 tons of power battery adhesives (A and B adhesives), 10000 tons of insulation materials, 5000 tons of Fluoropolymer, and 3000 tons of supporting polyurethane prepolymer and polyalcohol prepolymer production lines. Public information shows that Jiangxi Tengwei New Material Technology Co., Ltd. is a wholly-owned subsidiary of Tinci Materials, a high-tech private enterprise specializing in the integration of research, development, production and sales of power battery adhesives, microelectronic materials, insulation materials and Fluoropolymer.
Gansu Yinglong Biology plans to build Dinotefuran, amikafon and other pesticide technical drugs projects
On December 31, 2022, the People's Government of Baiyin City, Gansu Province announced the construction project of Gansu Yinglong Biotechnology Co., Ltd. with an annual output of 800 tons of amisole, 150 tons of pentafluorofomesafen, and 1000 tons of Dinotefuran chemical pesticides.
According to the public announcement, the project is located in Yindong Industrial Park, Baiyin High tech Zone, and is equipped with a production workshop and equipment for the 800 ton annual production of imidacloprid raw material project; The production workshop and equipment for the annual production of 150 tons of pentafluorosulfonamide technical project; The production workshop and devices of the project with an annual output of 1000 tons of Dinotefuran technical drugs and the supporting safety, environmental protection, storage, utilities and other facilities.
Gansu Yinglong Biotechnology Co., Ltd. was established on November 6, 2020 and is a wholly-owned subsidiary of Jiangsu Haoshoucheng Weien Agrochemical Co., Ltd.
Fluorinated lithium salt
Hubei Xiaogan 30GWh lithium battery project put into operation
On June 28, the first phase of the commissioning activity of Chuneng New Energy Xiaogan Lithium Battery Industrial Park Project was held in the airport economic zone of Xiaogan, Hubei Province. The project will be commenced in Xiaogan Airport Economic Zone in May 2022, with a planned total capacity of 150GWh and a total floor area of more than 3335mu. The design annual capacity of Phase I of the project exceeds 30GWh and covers an area of more than 1000mu.
It is understood that Chuneng New Energy has already laid out three major bases in Jiangxia, Xiaogan, and Yichang, Hubei, covering an area of over 9000 acres. The planned total production capacity is 350GWh, and the planned total investment is 137.5 billion yuan.
5GWh Sodium-ion battery project settled in Wuxi, Jiangsu, aiming at electric two wheeled vehicles
On June 25, Pangu Naxiang Sodium-ion battery R&D headquarters and manufacturing base project was signed and settled in Xishan Economic and Technological Development Zone.
The Sodium-ion battery R&D headquarters and manufacturing base project signed and implemented this time has a total investment of 2.62 billion yuan and a planned land area of 200 mu. It will build a Sodium-ion battery R&D center and a 5GWh mass production line. After completion, it is expected to achieve an annual sales of more than 3 billion yuan and an annual tax of more than 250 million yuan, promote the development of the sodium ion industry chain in Wuxi, and provide technical and product support for the transformation and upgrading of the two wheel electric vehicle industry in Wuxi.
New energy distribution and storage is the future trend, and the characteristics of sodium batteries are highly compatible with the demand for energy storage scenarios. The domestic electric two wheeled vehicle industry is in a period of rapid development, and the sodium electricity industry is facing unprecedented opportunities. "Zhou Yekai, assistant to the general manager of Pangu Naxiang, introduced that this year, the company will accelerate the completion of the pilot line and plan to achieve mass production in the next 5 years, becoming a leading enterprise in the segmented track.
According to the public information, Shenzhen Pangu Naxiang New Energy Co., Ltd. has a leading capacity in Sodium-ion battery design and independent R&D and manufacturing. It is one of the earliest enterprises engaged in the research and development of key technologies of Sodium-ion battery in China, and has won many leading investments in new energy industries, such as Xiongtao Shares, GME, Star Source Materials, Zentong Electronics, New Zebang, Jingshan Light Machinery, etc.
Ganfeng Lithium Argentina Salt Lake Project has produced the first batch of products
On the evening of June 12, Ganfeng Lithium announced that it had recently received a notice from Minera Exar S.A. of Argentina, the holding subsidiary of Ganfeng Lithium Netherlands Co., B.V., its wholly-owned subsidiary, that its Cauchari Olaroz salt lake project in Argentina had produced the first batch of Lithium carbonate products. The company expects that with the subsequent ramp up of production capacity and optimization of production lines, the project will gradually produce battery grade products.
Cauchari Olaroz Salt Lake Project is located in Jujuy Province, Argentina. The total lithium resources are about 24.58 million tons of Lithium carbonate equivalent (LCE). The company enjoys the control of the project. At present, the first phase of the project is planned to produce 40000 tons of LCE annually, and the second phase is not less than 20000 tons of LCE. The first batch of Lithium carbonate products will be produced in the first phase of the project.
Ganfeng Lithium's 2022 annual report shows that Ganfeng Lithium directly holds 46.67% of the equity of the Cauchari Olaroz project and enjoys the control right of the project. The company entered into an underwriting agreement and obtained 76% of the product underwriting rights in the planned annual output of 40000 tons of battery grade Lithium carbonate of the Cauchari Olaroz project.
Liuzhou Fansaike's annual production of 100000 tons of lithium battery electrolyte project trial production
On the morning of June 26, Luzhai County, Liuzhou, Guangxi, held a ceremony for the centralized commencement and completion of major projects in the second quarter of 2023 and the trial production of Liuzhou Farnsec's 100000 ton/year lithium ion battery electrolyte project.
It is reported that the project is invested and constructed by Liuzhou Faensec New Energy Technology Co., Ltd. (hereinafter referred to as "Liuzhou Faensec"). It is located in Jianzhong West Road, Luzhai County, covering an area of 122 mu, with a total investment of 558 million yuan. After the project is fully put into production, it is estimated that 100000 tons of lithium battery electrolyte can be produced annually.
According to the public data, the major shareholder of Liuzhou Farnswick is Farnlight New Energy Technology Co., Ltd. (hereinafter referred to as Farnlight), and the equity contribution also includes SAIC Motor, SAIC-GM-Wuling, Penghui Energy, Ruipu Lanjun and Liuzhou local funds.
