Fluorochemical Weekly Report: HFCs Quota Released in the Market Scene, Expected to Rise in popularity

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One week market

Refrigerant: HFCs Refrigerant Quota Policy Released in Immediate Market Scenarios, Expected to Continuously Increase in Gas Content

This week, the production and sales of refrigerants in the market were weak and stable, and prices were weak and consolidated. Weekly market characteristics: The production and sales of upstream basic raw material products are acceptable, and prices fluctuate upwards. Among them, the supply and demand of fluorite powder, hydrofluoric acid, trichloroethylene, and tetrachloroethylene are in a weak balance, and the market is temporarily operating steadily; The prices of other raw materials have risen in a narrow range, with liquid chlorine prices rising around 10-20%. Due to the continuous narrow rise in basic raw material prices in recent weeks, there are expectations of a slight increase in the prices of direct refrigerant raw materials. From a product perspective, the consumption of HCFC-22 quota is faster than expected, with tight supply supporting high and firm prices; The HFC-134a factory has resumed production, but the operating load is low and generally reluctant to sell. Due to supply constraints, the factory has a strong upward mentality, and there is a slight expectation of price increases in the future; The supply of other refrigerant products is loose, and the incremental demand for domestic and foreign sales is limited. In the

short term, prices will continue to fluctuate in a narrow range. In addition, at the HFCs quota allocation exchange meeting held on August 9th, it was stated that 65% of the HCFC contribution value will not be distributed temporarily as a national reserve for performance safety margin. There is still controversy over the specific content of quota trading and quota conversion. Overall, quota management policies have determined that global supply is limited, and the HFCs refrigerant market will maintain a long-term positive situation.

Fluoropolymers: Outstanding supply-demand contradiction between different products, urgent need for incremental market recovery

This week, the fluoropolymer market continued to experience oversupply and weak cost support, while mainstream products remained stable on the sidelines. From the perspective of the industrial chain, the upstream monomer products R22 and R142b have been extensively expanded in factories, and most factories have achieved complete self-sufficiency in the industrial chain, ensuring both cost reduction and supply guarantee. Under the combined effect of quantity and price, domestic TFE series and VDF series fluoropolymer products have shown loose supply, with relatively insufficient demand. The future market improvement is more determined by the recovery speed of demand in the application industry. Due to the significant differentiation of supply and demand contradictions among different products, the intensity of the supply and demand game for different products also varies greatly. However, from the current price level, there is not much room for further price decline, and most products may consolidate at the bottom.

Fluorinated lithium salts: increased on-site supply drives prices down

This week, lithium carbonate continued to be destocked, and the production capacity affected by weather in the early stage gradually recovered. There was ample supply of goods in the production, coupled with weak demand. The mentality of the industry was still weak, and prices were moving downwards. The overall market of the lithium salt industry chain also followed suit. Under the shipping tone, hexafluoride enterprises have controlled the operating load, but the rapid growth of production capacity has intensified industry competition, with prices falling more than cost changes. Downstream electrolyte and positive electrode material factories are driven by a bearish mentality and have limited orders for lithium salts, mainly consuming inventory. Industry Online predicts that the increase in lithium carbonate shipments will limit its cost support for lithium hexafluorophosphate. However, due to the low operating load, the price of lithium carbonate may fluctuate in the same direction as lithium carbonate due to the narrow range and weak consolidation.

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Weekly Highlights

Fluorine raw materials

The project of recovering tailings from Shangmawei Mine in Chenzhou, Hunan to produce fluorite and lithium concentrate

On August 8th, the website of the People's Government of Chenzhou City announced the comprehensive utilization project of tailings from Shangchayuan Tailings Pond of Hunan Yijin Investment Co., Ltd.

According to the public announcement, the project is located in Xinglong Village, Jiyi Township, Rucheng County, Chenzhou City, Hunan Province, with a total investment of 48 million yuan. It is planned to build a tailings flotation workshop and related supporting facilities, which will recover valuable resources such as fluorite, lithium, and tungsten through the extraction of tailings from the tailings pond of Shangchayuan. The generated tailings will be partially filled underground through the existing filling station, and the rest will be discharged into the Wushixia tailings pond, with an annual production of 4500 tons of fluorite concentrate 210 tons of tungsten concentrate and 38000 tons of lithium concentrate.

At present, the civil construction of the project is basically completed, and the equipment has been installed, which is in a shutdown state. Subsequent construction needs to implement measures for soil erosion and related ecological restoration.

Zigong plans to produce 150000 tons of electronic grade hydrofluoric acid and 5000 tons of electronic grade ammonium fluoride solution annually

On July 13th, the website of the Ecological Environment Bureau of Zigong City announced the annual production of 150000 tons of electronic grade hydrofluoric acid and 5000 tons of electronic grade ammonium fluoride solution at the Nanxin Material Base.

The formula shows that the project is located in the New Materials Industrial Park of the Yantan High tech Industrial Park, with Sichuan Yongjing New Materials Co., Ltd. as the main construction entity and a total investment of about 500 million yuan. According to public information, Sichuan Yongjing New Materials Co., Ltd. is a holding subsidiary of Fujian Yongjing Technology Co., Ltd., which mainly produces fluorinated fine chemicals and fluorinated special gases with a background of New Zebang.

Fluoropolymer

Shao Wuyongtai plans to build projects such as 2500 tons of fluorinated coolant

On August 7th, the website of Jintang Industrial Park in Shaowu City announced that Shaowu Yongtai High tech Materials Co., Ltd. had entrusted Fujian Jinhuang Environmental Protection Technology Co., Ltd. to carry out a project on Shaowu Yongtai's annual production of 3150 tons of hexafluorophosphate, 2500 tons of fluorinated coolant, 350 tons of fluorinated electrolyte additives, and 120 tons of sodium fluoride.

The project relies on the existing factory buildings and public facilities for upgrading and renovation, and constructs a 3150 ton hexafluorophosphate production line for the technical renovation of the lithium hexafluorophosphate workshop 2; The original lithium difluorosulfonamide workshop has been renovated into an existing production line, with the construction of a production line for 2500 tons of fluorinated coolant and 350 tons of fluorinated electrolyte additives; Build a new 120 ton sodium fluoride production line in the original fluoride workshop.

Fujian Nanping plans to produce 1000 tons of fluorinated pharmaceutical intermediates, electronic additives, and other projects annually

On August 8th, the website of the Ecological Environment Bureau of Nanping City announced the annual production of 1000 tons of fluorinated pharmaceutical intermediates and electronic additives by Ronghui Chemical Co., Ltd. in Shaowu City, Fujian Province.

According to the public announcement, the total investment of the project is 60 million yuan. The main construction contents include an annual production line of 450 tons of sodium trifluoromethyl tetrazolium salt, an annual production line of 50 tons of 5- (4-chlorobutyl) -1-hexacyclotetrazolium (referred to as tetracycline tetrazolium), an annual production line of 100 tons of 6-chloro-1-hydroxy-triazolium (referred to as 6-Cl-HOBT), and an annual production line of 150 tons of 3,3-dimethylbutyric acid (referred to as 33 acid) One production line with an annual production capacity of 200 tons of 5-aminotetrazolium and one production line with an annual production capacity of 50 tons of 4-bromo-2-fluoro-1,1-biphenyl (UFA-104). At the same time, the 300 tons of carbazide products produced in the accepted 1000 tons of electronic optical chemical additives and pharmaceutical intermediates chemical project will be replaced, and carbazide will no longer be produced.

Fluorinated lithium salt

Shenghua New Materials: The total planned electrolyte production capacity of the company is 700000 tons

On August 7th, Shenghua New Materials (603026) introduced in response to the second round of audit inquiry letter that the company's electrolyte production capacity plan is a total of 700000 tons, including an annual production of 300000 tons of electrolyte project (Dongying), an annual production of 200000 tons of electrolyte project (Wuhan), and a 200000 tons/year lithium battery electrolyte project (Leshan).

Shenghua New Materials stated that the company fully considered the characteristics of the electrolyte industry when planning the scale of new electrolyte production capacity, and used the planned market share of about 10% to 15% as the basis for calculating the capacity scale. The 200000 ton/year lithium battery electrolyte project (Leshan) has not yet been constructed, and the company will choose to build it based on the future development of the electrolyte market.

Tianji Co., Ltd. has a full production and sales capacity of 18160 tons of lithium hexafluorophosphate

On August 4th, during the online research activity of Tianji Co., Ltd. (002759), it was introduced that the company currently has a production capacity of 18160 tons of lithium hexafluorophosphate. After the completion of technological transformation by Xintai Materials this year, the production capacity can reach 22000 tons.

At present, the company's lithium hexafluorophosphate is fully produced and sold, and the production capacity is relatively tight. We are building this fundraising project. On the one hand, the downstream market is constantly developing, and our major clients hope that we can quickly invest to provide them with more supporting facilities. On the other hand, the lithium hexafluorophosphate industry is constantly gathering at the top. Although the price of lithium hexafluorophosphate has fallen, the company has scale advantages and cost advantages, There is still considerable gross profit margin and profitability, so the company is confident in continuing to invest in lithium hexafluorophosphate.

Fuxin Technology Group Ganzhou 10GWh Solid State Lithium Battery Project Commences

On August 8th, the commencement ceremony of the first phase of Jiangxi Judian's annual production of 10GWh solid-state lithium batteries and PACK manufacturing project by Fuxin Technology Group was successfully held in Longnan, Ganzhou, Jiangxi.

It is reported that the above project has a total investment of 10 billion yuan and a fixed investment of 6.5 billion yuan. The land area is about 600 acres, and the production capacity is 10GWh of solid-state lithium batteries, PACK systems, and energy storage systems per year. The project is divided into two phases, with a total investment of 1.675 billion yuan. The project covers an area of approximately 320 acres and a total construction area of 72000 square meters. The total production capacity of the first phase of the project is 2GWh of single high capacity solid lithium batteries and 2GWh of PACK per year.

According to data, Jiangxi Judian New Energy Technology Co., Ltd. is jointly invested and built by Shandong Judian New Energy Co., Ltd., Longnan Urban Investment Holding Group Co., Ltd., and Longnan Construction Investment Holding Group Co., Ltd. Relying on the group's independently developed solid-state polymer lithium battery technology, it focuses on deep cultivation in high-end market areas such as lithium batteries, energy storage batteries, energy storage, and emergency power storage.

Hunan Yuneng plans to raise no more than 6.5 billion yuan in additional positive electrode materials and upstream resources

On the evening of August 10th, Hunan Yuneng (301358) disclosed its plan to issue stocks to specific targets. The company's issuance of stocks to specific targets this time is limited to 35 specific targets, with an estimated total fundraising amount of no more than 6.5 billion yuan (including the original amount). After deducting the issuance expenses, it is planned to use all of them for the annual production of 320000 tons of manganese iron lithium phosphate project, 75000 tons of ultra long cycle lithium iron phosphate project, 100000 tons of iron phosphate project, 20000 tons of lithium carbonate and 80000 tons of iron phosphate waste lithium iron phosphate battery recycling project, And supplementing working capital.

Specifically, the annual production of 320000 tons of lithium manganese iron phosphate project is expected to have a total investment of 4.425 billion yuan, with a proposed fundraising amount of 2.8 billion yuan. After the fundraising is in place, Hunan Yuneng will invest the raised funds in Yunnan Yuneng through borrowing or capital increase; The annual production of 75000 tons of ultra long cycle lithium iron phosphate project is expected to have a total investment of 908 million yuan, with a planned fundraising amount of 500 million yuan.

After the funds raised are in place, Hunan Yuneng will invest the raised funds in Guizhou Yuneng through borrowing or capital increase; The annual production of 100000 tons of iron phosphate project is expected to have a total investment of 904 million yuan, with a planned fundraising amount of 600 million yuan. After the fundraising is in place, Hunan Yuneng will invest the raised funds in Guizhou Yuneng through borrowing or capital increase; The recycling and utilization project of waste lithium iron phosphate batteries with an annual production of 20000 tons of lithium carbonate and 80000 tons of iron phosphate is expected to have a total investment of 1.258 billion yuan, with a planned fundraising amount of 700 million yuan. After the fundraising is in place, Hunan Yuneng will invest the raised funds in Yunnan Yuneng through borrowing or capital increase.