Fluorochemical Weekly Report: Weak Market Environment Urgently Needs Demand Recovery
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One week market
Refrigerant
This week, the production and sales of refrigerants in the market remained weak and stable, with mainstream product prices bottoming out and consolidating. Weekly market characteristics: Under the supply and demand game of upstream basic raw material products, prices remain stable and rise. Among them, the fluorite powder, hydrofluoric acid, Trichloroethylene, and tetrachloroethylene markets were weak and stable, and the price of methane chloride was increased by more than 6%, driven by the supply reduction and cost increase, and the cost support of corresponding refrigerant products was stronger. From a product perspective, as temperatures rise in multiple regions and the demand for air conditioning after-sales service increases, HCFC-22 production and sales have improved, and prices remain high. There is a slight expectation of a slight increase in the future; The current domestic and foreign demand for HFCs refrigerants has not significantly boosted, and under supply and demand pressure, price stability and consolidation are the main factors. Among them, due to the shutdown of HFC-134a devices in Dongyang Sunshine and Zhonghua Taicang, the market supply is tight, and factories generally control or even suspend orders, leading to a bullish price outlook in the future. The price of HFC-32 is near the cost line, driven by increased cost support, and the price is exploring a narrow range of increases. 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.
Fluoropolymer
This week, the supply of fluorinated polymers exceeded the mainstream demand, and some products rebounded from low levels. In a weak market environment, fluctuations in raw material prices directly stimulated polymer prices. The main characteristic of the current market is to reduce production and maintain prices, and urgently demand recovery. From the perspective of the industrial chain, the prices of upstream basic products such as chloroform, calcium carbide, liquid chlorine, and other raw materials fluctuate frequently and the game is fierce. The cost center of downstream organic fluorine monomers TFE, VDF, and HFP also fluctuates unstable, and the corresponding bottom support of fluorinated polymers is gradually strengthening; Downstream PTFE, FEP, FKM, HFP, PVDF and other fluoropolymers have seen both supply and demand increase and decrease, resulting in overall weak prices. In summary, it is predicted that the demand for fluorinated polymers in the future urgently needs to recover, and product prices may consolidate with the strengthening of bottom support.
Fluorinated lithium salt
This week, the supply of Lithium carbonate in the market continued to grow. With the addition of futures limit down information fermentation, the price moved downward, and the overall market of the lithium salt industry chain also fell. 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. Driven by a bearish mentality, their orders for lithium salts were limited, with a focus on consuming inventory. Industry online estimates that the increase in Lithium carbonate shipments will limit its support for the cost of Lithium hexafluorophosphate, and the downstream control of raw material inventory will lead to weak demand, and the price of lithium fluoride salt may be weak.
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Weekly Highlights
Fluorine raw materials
By bypassing hydrogen fluoride, chemists have produced fluoride for the first time in a harmless manner
The team of chemists at the University of Oxford in the UK has produced fluoride for the first time without the use of hazardous gases. This new method, published in the latest issue of Science, may have a huge impact on global industrial security and Carbon footprint reduction.
Currently, all fluorides are generated through highly energy intensive processes from the toxic and corrosive gas hydrogen fluoride. Despite strict safety regulations, hydrogen fluoride leaks have occurred multiple times in the past few decades, sometimes leading to fatal accidents.
In order to develop a safer method, the research team took inspiration from the natural Biomineralization process that forms teeth and bones. Generally, hydrogen fluoride itself is produced by the reaction of a crystalline mineral called fluorspar with sulfuric acid under adverse conditions, and then used to manufacture Fluorine compounds. In the new method, fluoride is directly made from fluorite, completely bypassing hydrogen fluoride.
Solid fluorspar is activated by the process of Biomineralization, which mimics the biological formation of calcium phosphate minerals in teeth and bones. The team used a mechanochemical process to grind fluorspar together with powdered potassium phosphate in a ball mill for several hours. The resulting powdered product can directly synthesize over 50 different fluorides from fluorite.
Zhongxin Fluorine Materials: The 30000 ton electronic grade hydrofluoric acid project is currently undergoing final installation and completion work
On July 11th, Zhongxin Fluorine Materials stated on the interactive platform that the company's 30000 ton electronic grade hydrofluoric acid project is currently in the final installation and completion work. Due to the lack of trial production, customers need to start certification work after mass production products are produced.
On April 26th, the Zhongxin Gaobao annual production of 30000 tons of anhydrous hydrogen fluoride renovation project was completed. According to public information, the annual production of 30000 tons of anhydrous hydrogen fluoride in the renovation project is photovoltaic grade hydrofluoric acid. The project adds a strong oxidant fluorine nitrogen mixture to the raw material anhydrous hydrogen fluoride, and circulates it in a tubular reactor for full oxidation, waiting for feeding; The anhydrous hydrogen fluoride after oxidation enters the first stage distillation tower to remove most of the reboiled substances; Then enter the second stage light boiling tower to remove most of the light boiling substances and further remove the heavy boiling substances; The purified anhydrous hydrogen fluoride is mixed with purified Ultrapure water to form 49% semi-finished product; The final semi-finished product is precisely filtered, filled and discharged.
Fluoropolymer
Shenzhen New Star plans to expand the annual production capacity of PVDF to 5000 tons
On July 19, Shenzhen Xinxing announced that its subsidiary, Ganzhou Songhui Fluorine New Material Co., Ltd., would change the "2000 ton/year PVDF project".
Among them, the annual production capacity of PVDF has been changed from 2000 tons to 5000 tons, the total project investment has been changed from 350 million yuan to 450 million yuan, and the project construction period has been changed from 24 months to 36 months, The construction content of the project has been changed to "build new buildings (structures) such as R142b, VDF, PVDF workshop, product warehouse, R142b and VDF combined unit, etc., with a total construction area of approximately 45000 square meters. New equipment such as chlorination tower, molecular sieve, preheater, cracking furnace, compressor, polymerization kettle, flash dryer, vacuum buffer tank, etc. will be added. After completion and production, an annual production capacity of 5000 tons of PVDF and 5000 tons of R152a will be formed.
Shenzhen Xinxing stated that the construction of PVDF project is conducive to improving its fluorine chemical industry chain layout, optimizing product structure, and cultivating new profit growth points.
Haisifu High end Fluorine Fine chemical Production Project Phase II is planned to be trial produced at the end of August
According to Sanming Rong Media Center, the second phase project of Haisifu High end Fluorine Fine chemical is currently in the process of completing plant equipment installation and ancillary works, and is scheduled to be completed for trial production by the end of August.
According to public information, the project started construction on December 25, 2021 and was fully capped on November 7, 2022. The project mainly builds 19 high-end fluorine Fine chemical production lines, with a total investment of 600 million yuan. After full operation, the new output value will be 2.3 billion yuan.
Fluoropolymer
Shenzhen New Star plans to expand the annual production capacity of PVDF to 5000 tons
On July 19, Shenzhen Xinxing announced that its subsidiary, Ganzhou Songhui Fluorine New Material Co., Ltd., would change the "2000 ton/year PVDF project".
Among them, the annual production capacity of PVDF has been changed from 2000 tons to 5000 tons, the total project investment has been changed from 350 million yuan to 450 million yuan, and the project construction period has been changed from 24 months to 36 months, The construction content of the project has been changed to "build new buildings (structures) such as R142b, VDF, PVDF workshop, product warehouse, R142b and VDF combined unit, etc., with a total construction area of approximately 45000 square meters. New equipment such as chlorination tower, molecular sieve, preheater, cracking furnace, compressor, polymerization kettle, flash dryer, vacuum buffer tank, etc. will be added. After completion and production, an annual production capacity of 5000 tons of PVDF and 5000 tons of R152a will be formed.
Shenzhen Xinxing stated that the construction of PVDF project is conducive to improving its fluorine chemical industry chain layout, optimizing product structure, and cultivating new profit growth points.
Haisifu High end Fluorine Fine chemical Production Project Phase II is planned to be trial produced at the end of August
According to Sanming Rong Media Center, the second phase project of Haisifu High end Fluorine Fine chemical is currently in the process of completing plant equipment installation and ancillary works, and is scheduled to be completed for trial production by the end of August.
According to public information, the project started construction on December 25, 2021 and was fully capped on November 7, 2022. The project mainly builds 19 high-end fluorine Fine chemical production lines, with a total investment of 600 million yuan. After full operation, the new output value will be 2.3 billion yuan.
Fluorinated lithium salt
Enjie Group's Annual Production of 1.6 billion square meters of Diaphragm Project Commences
On July 19th, the commencement ceremony of the 1.6 billion square meter diaphragm project under Enjie Group (002812) in Yuxi, Yunnan was held.
The total investment of this project is about 4.5 billion yuan, and it is planned to construct a 1.6 billion square meter diaphragm production line, which will be implemented in two phases. The first phase plans to invest 2.4 billion yuan and produce 800 million square meters of diaphragm annually; The second phase plans to invest 2.1 billion yuan and produce 800 million square meters of diaphragm annually. According to public information, the first phase of the project is expected to be fully completed and put into operation by the end of December 2024. The second phase will start construction based on the situation of the first phase of the project, and the investment is planned to be completed within 2 to 3 years.
On the previous February 16, 2022, Enjie shares signed the New Energy Battery Whole Industry Chain Project Cooperation Agreement with the People's Government of Yuxi City, Yiwei Lithium Energy, Huayou Holdings, and Yuntianhua, which agreed that all parties should jointly establish two joint ventures in Yuxi City, and jointly mine mineral resources, conduct deep processing of minerals, and jointly research and develop Produce and sell new energy batteries and new energy battery upstream and downstream materials, and jointly promote the formation of a new energy battery full industrial chain cluster in Yuxi City.
Sichuan Three Kingdoms Fund Established Western Lithium Industry, Increasing Exploration and Development of Lithium Mineral Resources
On July 23rd, the unveiling ceremony of Sichuan Western Lithium Industry Group Co., Ltd. was held in Chengdu.
Western Lithium Industry is jointly established by Tianfu Mining Investment, a wholly-owned subsidiary of Sichuan Natural Resources Investment Group, and three provincial enterprises under Sichuan Development (Holdings) Co., Ltd., including Chuanfa Longmang (002312) and Sichuan Road and Bridge (600039) under Shudao Investment Group Co., Ltd., with a registered capital of 90 million yuan and registered address in Malkang. Its business scope includes mineral resource exploration; Mining of mineral resources in non coal mines; Commonly used non-ferrous metal smelting, etc.
The western lithium industry jointly established by the three provincial enterprises this time will base on the rich Spodumene resources in the Kerin area of Aba Prefecture, seize the major opportunity of a new round of mineral exploration breakthrough strategic action, increase the exploration and development of lithium resources, adhere to the overall idea of resource dominance, industrial extension, scientific and technological innovation, and value improvement, improve the level of industrialization and cluster capacity, and help build a major international and domestic influence A competitive lithium battery industry cluster.
Shenghua New Materials Change and Increase Plan, Planned to raise 3.6 billion yuan of electrolyte and lithium battery materials
On July 15th, Shenghua New Materials (603026) issued a notice, and based on the actual situation of the company, the company reviewed and approved the "Proposal on Adjusting the Plan for Issuing Stocks to Specific Objects in 2022", which adjusted the amount of raised funds and investment projects for this issuance of stocks to specific objects.
Previously, Shenghua New Materials planned to raise a total of no more than 4.5 billion yuan (including the principal amount) through non-public issuance. After this change, the total amount of funds raised from this proposed issuance to specific targets will not exceed 3.6 billion yuan (including the principal amount). The net amount of funds raised after deducting relevant issuance fees will be used for the annual production of 300000 tons of electrolyte project (Dongying), annual production of 200000 tons of electrolyte project (Wuhan), and integrated production and research and development project of 220000 tons/year of lithium battery materials An annual production of 100000 tons of liquid lithium salt project, an annual production of 11000 tons of additives project, and supplementary working capital.
China Mining Resources Terminates Trading 51% Equity in Mongolia URT Lithium Project
On the evening of July 21st, China Mining Resources (002738) announced that the company had previously announced the signing of an investment oriented "framework agreement", intending to invest a total of $20 million to acquire 51% equity in the URT lithium project through acquisition and capital increase. After the signing of the Framework Agreement, relevant parties discussed investment matters but did not reach a final consensus. After careful research and friendly consultation with relevant parties, the company has decided to terminate the Framework Agreement and signed a termination and termination agreement on July 21, which terminates the external investment matter.
China Mining Resources stated that the mining rights involved in this transaction are still in the early exploration stage, and the termination of this investment will not have adverse effects on the company's performance and financial situation, and there will be no situation that will harm the interests of the company and shareholders. In the future, the company will continue to leverage its geological exploration technology advantages, actively acquire high-quality mining rights globally, and promote sustainable and healthy development of the company.
On the evening of February 13th, China Mining Resources announced its intention to invest $20 million to acquire a 51% stake in the URT lithium project located in Mongolia. According to the introduction, after verification of the primary exploration results, as of February 1, 2023, the resource estimation result of the URT lithium project in Mongolia, which was acquired by Sinomine Resources, was 1.743 million tons of ore of controlled+inferred lithium mineral resources, and the average grade of Lithium oxide (Li2O) was about 0.9%.
