Fluorochemical Weekly Report: High Temperature Weather Boosts Refrigerant Demand

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One week market

Refrigerant: Cost basically bottoms out, combined with high temperature weather boosting demand, bottoming out, stabilizing market, and increasing expectations

This week, the production and sales of refrigerants in the market remained weak and stable, with mainstream product prices fluctuating under pressure. Weekly market characteristics: Upstream basic raw material products are affected by weak industry demand, with prices falling more or rising less. Among them, fluorite powder, hydrofluoric acid, Trichloroethylene, and tetrachloroethylene markets are weak and stable. At present, the price of raw materials has basically bottomed out, and there is little room for further decline. Small cost fluctuations will support the stable operation of refrigerant prices. From a product perspective, the recent increase in temperature in multiple regions and the increase in after-sales demand for air conditioners have driven the production and sales of HCFC-22 to improve, and the prices have remained high and firm; The current domestic and foreign demand for HFCs refrigerants has not significantly boosted, and under supply and demand pressure, prices fluctuate in a narrow range. In the long run, due to the resurgence of the El Ni ñ o phenomenon this year, it is highly likely that high temperature weather will continue in the second half of the year. The demand for refrigerants in downstream areas such as air conditioning, refrigeration, and automobiles is expected to continue to grow, and companies have a strong upward mindset. In the short term, due to oversupply in the industry, the refrigerant market continues to operate under pressure and consolidation.

Fluoropolymers: Rapid supply growth leads to oversupply and price consolidation at the bottom

This week, the fluoropolymer market continued its weak trend of reducing production and ensuring prices, with product prices and raw material prices falling in the same direction. The main characteristic of the short-term market is the sluggish demand for actual orders. From the perspective of the industrial chain, the price fluctuations of upstream basic raw materials such as hydrofluoric acid, chloroform, calcium carbide, and liquid chlorine have led to a narrow downward shift in the cost center of organic fluorine monomers TFE, VDF, and HFP, which were originally experiencing bottom fluctuations. The price drop of monomer products has driven common fluoropolymers to bottom oscillate; Secondly, although PTFE, FEP, FKM, HFP, PVDF and other fluoropolymers have seen a double increase in supply and demand, their growth rate is relatively high at over 50% or even double that of the supply side. 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 demand for fluorinated polymers in the future urgently needs to recover, and product prices may consolidate at a low level. Ud'p

Fluorine containing lithium salt: at the beginning of the month, downstream procurement increased, and Lithium carbonate enterprises raised prices accordingly

This week, stimulated by the entry of the downstream market at the beginning of the month, the Lithium carbonate manufacturers have taken the action of holding up the price. The contraction of the market supply has supported the mentality of the industry, and the overall lithium salt has fallen from stable. Upstream raw materials Lithium carbonate and Lithium fluoride stopped falling and stabilized. Although the commencement of construction was reduced, the inventory was still accumulated. Under the shipping tone, hexafluoride enterprises control the operating load and strictly control inventory. Downstream electrolyte and positive electrode material factories saw a slight increase in production in July, but there was a certain accumulation of raw material inventory, resulting in a lower than expected increase in lithium salt orders. Industry online prediction shows that production enterprises can lower their operating load and control their shipment volume, which will provide some support for prices in the short term. However, with limited downstream orders, inventory will still gradually accumulate, and the prices of fluorinated lithium salts may be on the weak side of consolidation.

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Weekly Highlights

Fluorine raw materials

Juhua plans to construct a 300000 ton fluorite raw ore beneficiation project in Quzhou with an annual processing capacity

On July 6, the website of Longyou Branch of Quzhou Ecological Environment Bureau announced the Mineral processing of 300000 tons of fluorite raw ore annually handled by Zhejiang Juhua Chemical Mining Co., Ltd.

The formula shows that the project is located in Lingshang Village, Xikou Town, Longyou County, Quzhou, Zhejiang Province, with a total investment of 49.6466 million yuan and an estimated construction period of 16 months. The original sulfur concentrate and lead zinc mixed ore mining and beneficiation production lines will be eliminated, and the fluorite ore beneficiation production line will be added. After reconstruction and expansion, the annual processing capacity of the whole plant will be 300000 tons of fluorite raw ore, 100200 tons of fluorite concentrate and 170000 tons of ore sand (including tailing sand).

Development and Reform Commission: 25 fields such as calcium carbide should complete technical transformation or elimination by the end of 2025

On July 4th, the National Development and Reform Commission and five other departments issued a notice on "Energy Efficiency Benchmarking and Benchmarking Levels in Key Industrial Fields (2023 Edition)".

The notice clearly stated that oil refining, coal to coke, coal to methanol, coal to olefin, coal to ethylene glycol, caustic soda, soda ash, calcium carbide, ethylene, P-Xylene, yellow phosphorus, synthetic ammonia, monoammonium phosphate, diammonium phosphate, cement clinker, flat glass, building ceramics, sanitary ceramics, iron smelting, steel smelting, ferroalloy smelting, copper smelting, lead smelting, zinc smelting In principle, the 25 previously defined areas such as electrolytic aluminum should be completed with technical transformation or phased out before the end of 2025.

In addition, the notice also added 11 new fields, clarifying that industries such as ethylene glycol, urea, titanium dioxide, polyvinyl chloride (PVC), purified terephthalic acid (PTA), radial tires, industrial silicon, toilet paper base paper, tissue base paper, cotton, chemical fiber and blended woven fabrics, knitted fabrics, yarn, adhesive short fibers, etc. should complete technical transformation or be phased out before the end of 2026 in principle.

Fluoropolymer

Jinchuan Group's annual production of 20000 tons of high-end PVDF resin industry chain project (Phase I) has officially laid the foundation

On June 10th, the groundbreaking ceremony for the annual production of 20000 tons of high-end PVDF resin industry chain project (Phase I) of Jinchuan Group was officially held in Jinchang, Gansu.

The project product design categories include lithium battery level, photovoltaic level and coating level, which can be applied to new energy battery separators, photovoltaic backplane films, Fluoropolymer and other fields. The first phase of the project has an annual production capacity of 10000 tons, and after completion, it is expected to increase operating revenue by 1.16 billion yuan.

According to the public data, the project is located in the third plant area of Jinchang Jinchuan Group Company. The total investment of the project is 1098799700 yuan, and it will be constructed in two phases: the first phase of the project plans to build a 10000 t/a production unit for PVDF production line, including 12600 t/a R152a production unit (supporting acetylene generation device), 18000 t/a difluoro monochloroethane (R142b), 11000 t/a VDF production unit The first phase of the project is expected to be constructed from May 15, 2023 to June 30, 2024 for the 10000 ton/year PVDF production unit and 60000 ton/year Aluminium chlorohydrate (solid) production unit.

Henan Ruimei Science and Technology 15000 ton/year Chlorine and Fluorine Fine chemical Project

On May 9, Jiaozuo Ecological Environment Bureau announced the project of Henan Ruimei Technology Co., Ltd. with an annual output of 15000 tons of chlorine and fluorine containing Fine chemical.

According to the public announcement, the project is located in the western industrial park of Jiaozuo Industrial Cluster, with a total investment of 650 million yuan, and will be constructed in two phases. Among them, the first phase project will build a production line with an annual output of 6000 tons of benzyl chloride and 3000 tons of chlorobenzaldehyde; The second phase of the project is to build a 2000 ton chloro Ethylene carbonate production line, a 3000 ton vinyl carbonate production line and a 1000 ton fluoro Ethylene carbonate production line.

Fluorinated lithium salt

Xinjiang Zhicun 60000 ton battery grade Lithium carbonate project was completed and put into operation

On July 2, the commissioning ceremony of the 120000 t/a battery grade Lithium carbonate project of Xinjiang Zhicun New Energy Materials (Phase I 60000 t/a), covering an area of 1300 mu and with a total investment of 4.6 billion yuan, was successfully held in Xinjiang Ruoqiang New Material Industrial Park. This is the first battery grade Lithium carbonate project completed and put into operation by Zhicun Lithium Industry Group in Xinjiang in 2023.

With a total investment of 12 billion yuan, the project will build an intelligent production line with an annual output of 120000 tons of battery grade Lithium carbonate, a supporting intelligent mine system, a beneficiation production line, and a production line for the preparation of new building materials through the resourceful utilization of lithium slag. The first phase of the project is to build a battery grade Lithium carbonate project with an annual output of 60000 tons, and at the same time, to build supporting mining and mineral processing projects respectively; The second phase of the project is to build a battery grade Lithium carbonate project with an annual output of 60000 tons, and build lithium mineral resources supporting projects respectively.

Anneng's Future Annual Production of 20GWh Cell Project Commences

Linwu County Rong Media Center reported that recently, the battery production project of Hunan Anneng Future Energy Technology Co., Ltd. was inaugurated.

Anneng Future Battery Production Project is located in Linwu County High tech Industrial Development Zone, Chenzhou, Hunan Province, covering an area of more than 500 mu, with a total investment of 10 billion yuan. It is planned to achieve an annual capacity of 20GWh for battery cells and 10GWh for PACK. The project is planned to be constructed in three phases, and is expected to be completed by the end of 2025.

In addition, according to the report of Huasheng Online in April this year, the construction of the full industrial chain project of the new energy technology lithium battery and new energy of Qisheng, located in Huatang Township, Linwu County, is in full swing. The first annual processing of 600000 tons of beneficiation production line in the first phase of the project has been put into trial production, and currently more than 6000 tons of lithium mica concentrate have been produced; The second and third mining and beneficiation plants are under intense construction. The project plans to build a lithium battery industry park that integrates the entire industry chain of lithium mining, mineral processing, smelting, and battery manufacturing, to help Linwu build the "Battery Industry Capital". The project is divided into three phases, with the first phase starting in December 2022 and planned to be completed in December 2024.

Huayou Cobalt Industry plans to go public at sea and layout a ternary positive electrode project for high nickel power batteries in Hungary

Huayou Cobalt recently said that it plans to issue Global depository receipt and list them on the SIX Swiss Exchange.

It is expected that the GDR for this issuance will be on July 7, 2023 Swiss time. The final price for this issuance has been determined to be $1.65 per GDR, with a total fundraising of approximately $583 million.

In July 2022, Huayou Cobalt Industry issued a fixed increase plan, planning to raise 17.7 billion yuan from its controlling shareholder Huayou Holdings and no more than 34 specific targets. But in December 2022, six months later, Huayou Cobalt announced that after considering the company's actual situation, development plan, GDR issuance plan, and other factors, the company had decided to terminate the fixed increase issue.

In addition, on June 21 of this year, Huayou Cobalt Industry announced that it plans to invest in the construction of a ternary positive electrode project for high nickel power batteries in Hungary through its controlling subsidiary, Hungary Bamo. After preliminary calculation, the total planned investment for this project is 1.278 billion euros.

Haike Xinyuan has been successfully launched, specializing in carbonate series lithium-ion battery electrolyte solvents

On July 7th, Shandong Haike Xinyuan Material Technology Co., Ltd. (referred to as Haike Xinyuan; stock code: 301292) successfully listed on the Shenzhen Stock Exchange's ChiNext board, with an issuance price of 19.99 yuan per share and a P/E ratio of 16.23 times. As of press release, the company's stock price has risen to 30.07 yuan per share, with a total market value of 6.702 billion yuan.

In this IPO, Haike Xinyuan issued a total of 55740795 new shares, raising a total of 1.114 billion yuan, which will be used for the lithium battery electrolyte solvent and supporting projects (Phase II) after deducting the issuance fees.

In terms of customers, the main domestic customers of Haike Xinyuan carbonate series lithium ion battery electrolyte solvent include Tinci Materials, BYD, Cathay Huarong, Shanshan, etc; The main overseas customers include well-known lithium battery electrolyte manufacturers such as Central Nitrate, South Korea's Tianbao, and South Korea's ENCHEM.