Fluorochemical Weekly Report: Duozhong's Good Profits Drive a Reversal and Rise in Scenery Magnitude

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One week market

Refrigerant: Rising prices of raw materials and strong demand for foreign trade drive up prices

This week, driven by the continuous rise in raw material prices and strong demand for foreign trade, the supply side has a strong reluctance to sell, leading to a general increase in mainstream refrigerant prices. Weekly market characteristics: The upstream basic raw material product fluorite powder is in short supply and has high prices. AHF has raised prices again due to tight supply and improved downstream demand, which has boosted downstream refrigerant prices; The supply of methane chloride is tight, and the price has increased by around 12% month on month; The tight supply of TCE and PCE has stimulated a narrow rise in prices. Overall, the recent rapid rise in raw material prices has strengthened the support for refrigerant costs. In addition, considering the long shipping schedule and export license cycle, as the fourth quarter approaches, foreign trade procurement is active and export orders are sufficient to support the factory's production reduction and upward trend. It is worth noting that with the upcoming opening of the Hangzhou Asian Games, the traffic control of hazardous chemical vehicles will have a significant impact on the delivery of orders from Juhua and Sanmei, further exacerbating the imbalance between supply and demand in the industry. It is expected that under the multiple favorable effects of rising costs, strong foreign trade demand, and a shortage of some raw materials, the refrigerant market will continue to rise strongly in the short term.

Fluorinated polymers: weak supply-demand relationship, cost driven strength

This week, the prices of upstream basic raw materials in the fluoropolymer market have significantly increased, driving the cost of monomer products R22 and R142b to rise rapidly. The collective cost support for TFE series and VDF series polymers has been strengthened. In terms of specific products, upstream products such as fluorite powder, hydrofluoric acid, methane chloride, liquid chlorine, sulfuric acid, etc. have seen significant recent increases. In weak market conditions, cost has a significant driving effect on prices. The rebound in upstream basic raw material prices has a boosting effect on the entire industry chain. In the short term, demand recovery is limited, and the market will continue to play the game of effective supply and demand, with mainstream fluoropolymer products mainly stabilizing their operation.

Fluorinated lithium salts: Lithium mines are reluctant to sell at high prices, and cost changes are slowly transmitting to the spot market

This week, the demand for lithium carbonate has cooled down, and the mining sector has taken a cautious approach to selling and maintaining prices. Under the pressure of large on-site supply stocks, prices have been forced to decline. The poor market situation of lithium carbonate has further weakened the cost support for lithium hexafluorophosphate, and due to the excessive release of production capacity, China's production of hexafluorophosphate remains at a historical high. High intensity competition has led to a decline in hexafluorophosphate prices with costs. In the context of a weak market, downstream electrolyte and cathode material factories maintain low raw material inventory and limited production scheduling, and weak demand has curbed product prices. Industry Online predicts that the growth of downstream main demand for power batteries is limited, and it is expected that the price of lithium carbonate may still be lowered. The price of lithium hexafluorophosphate will also fluctuate in the same direction as lithium carbonate. However, as the price of lithium carbonate further decreases, lithium salt factories that extract raw materials are facing pressure to lose money, and the start of operations is accordingly reduced. The on-site supply will further shrink, providing some support for lithium prices.

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Weekly Highlights

Fluorine raw materials and refrigerants

Release of the Implementation Plan for Setting and Distributing the Total Amount of Hydrogen Fluoride Carbides Quota in 2024 (Draft for Soliciting Opinions)

On September 21st, the website of the Ministry of Ecology and Environment announced a notice on publicly soliciting opinions on the "Implementation Plan for Setting and Distributing the Total Amount of Hydrogen Fluoride Carbides Quota in 2024 (Draft for Soliciting Opinions)". Please refer to Interpretation | Implementation Plan for HFCs Refrigerant Quota for the interpretation of the plan.

Jinshi Resources: High quality fluorite powder exceeding 3500-3600 yuan/ton, optimistic about future fluorite prices

On September 19th, Jinshi Resources stated at the 2023 semi annual performance briefing that since September, the price of acid grade fluorite powder has indeed continued to rise, and the current market price of high-quality powder has indeed exceeded 3500-3600 yuan/ton. The rise in prices is partly due to tight supply. Indeed, with the strict safety, environmental protection, and regulation of mines, as well as the natural depletion of resources after many years of mining in small and medium-sized mines, the supply side continues to tighten. On the other hand, demand is also gradually improving, and the fourth quarter is the traditional peak season for both purchase and sales.

In terms of subsequent prices, due to the difficulty of large-scale investment on the supply side in the short term, the demand side will also improve with the recovery of real estate and other factors, and the increase in new energy will gradually release. We are optimistic about the price of fluorite in the later stage, especially the gradual upward movement of the price center.

Fluoropolymer

Sinochem Blue Sky plans to build an annual production of 1000 tons of hexafluorobutadiene (HFBD) project in Chenzhou

On September 11th, the website of the Chenzhou Municipal People's Government announced the annual production of 1000 tons of perfluoroalkene by China National Chemical Blue Sky Electronic Materials (Chenzhou) Co., Ltd. According to the public announcement, the project has a total investment of 320 million yuan and is located in the Yizhang Fluorine Chemical Recycling Industry Development Zone of Chenzhou City. It is expected to start construction in September 2023 and be completed in December 2024.

The design production capacity of the entire production unit of the project is designed based on trifluoroethylene as the raw material. The main product hexafluorobutadiene has a design production capacity of 1000t/a, and the by-products 31% hydrochloric acid and 70% dilute sulfuric acid have a design production capacity of 1900t/a and 140t/a, respectively. The intermediate products are trifluoroethylene, dibromotrifluoroethane, and zinc trifluoroethylene (25%).

To meet market demand, this project flexibly produces perfluoroalkene, trifluoroethylene, and zinc trifluoroethylene bromide (25%) according to market demand. However, the overall design capacity of the project production equipment and the consumption of raw material trifluoroethylene remain unchanged.

On the morning of September 13th, the fluorine containing high-end electronic material project of Shandong Qifu New Materials Co., Ltd. was officially laid and started in the Chemical Industry Park of Gaoqing County. It is understood that the project has a total investment of 920 million yuan and is located in Gaocheng Town, Gaoqing County, Zibo, Shandong.

After the project is completed, it can achieve an annual production capacity of 39264 tons of difluoromethane (R22), 50000 tons of chloroform (R40), 200 million tons of tetrafluoroethylene (TFE), 10671 tons of hexafluoropropylene (HFP), 2000 tons of octafluorocyclobutane (C318), 3000 tons of perfluoroethylene propylene (FEP), and 3000 tons of soluble polytetrafluoroethylene (PFA).

Fujian Taiwan Fluorine Chemical Industry Fluorine Fine Chemicals Project Commences

On September 20th, the planned total investment of 1.5 billion yuan for the fluorine containing fine chemical project of Fujian Taiwan Fluorine Chemical Technology Co., Ltd. was officially launched in the Jikou Circular Economy Industrial Park of Sanming Economic Development Zone located in Sanyuan District.

It is reported that the project plans to invest 1.5 billion yuan and is located in the Sanming Economic Development Zone. It aims to build an annual production capacity of 3600 tons of tetrafluoroethylene (TFE), 2500 tons of polytetrafluoroethylene resin (including S-PTFE and D-PTFE), 1000 tons of perfluoroalkyl ethyl acrylate (FA), and 11500 tons of fluorine fine products such as fabric finishing agents, textile additives, and anti fog agents.

Fujian Taiwan Fluorine Chemical Technology Co., Ltd. is a Taiwanese enterprise with independent research and development capabilities. The Taiwan Fluorine Fine Chemical Project has high technological content and good market prospects. After being put into operation, it can effectively fill the market gap of high-end chlorine chemical products in Fujian Province. After the project is fully put into operation, the annual output value can reach 2 billion yuan, with tax revenue exceeding 200 million yuan, and significant economic and social benefits.

Inner Mongolia Fluorine Source Technology's Fluorine High tech New Material Industry Project Commences

According to Inner Mongolia Daily, on September 19th, major projects in the Ulanbuhe Ecological Sand Industry Demonstration Zone of Alxa High tech Industrial Development Zone in Inner Mongolia began construction, with the successful commencement of the high-end fluorine material integration project of Inner Mongolia Fluorine Source Technology Co., Ltd.

It is understood that the project is planned to be divided into three phases to construct the fluorine containing high new material industry, with a total planned investment of 30.2 billion yuan and a total area of 8000 acres. The first phase of the project is under construction. The products include high-end polymer series, high-end resin series, electronic grade lithium battery solvent additives, fourth generation refrigerant foaming agent series, fourth generation fire extinguishing agents, fluorinated pharmaceutical intermediates, food and pharmaceutical packaging materials. The commencement of the high-end fluorine material integration project of Inner Mongolia Fluorine Source Technology Co., Ltd. lays the foundation for Shanghai Mongolia Energy Group to build a new coal chemical and fluorine chemical industry park, and create a new coal chemical and fluorine chemical industry cluster.

The project is based on five basic raw materials, namely fluorite, coal, sulfur, salt, and limestone, and is divided into three phases to construct a fluorine-containing high-tech new material industry project. The products mainly include high-end polymers, fourth generation refrigerants, foaming agents, electronic grade battery solvent additives, fourth generation fire extinguishing agents, fluorine-containing pharmaceutical intermediates, and other fluorine-containing fine chemicals. The total planned investment of the project is 30.2 billion yuan. The first phase investment is 3.66 billion yuan to build a high-end fluorine material integration project, mainly including the construction of difluoromethane (R22), tetrafluoroethylene (TFE), tetrafluoroethylmethyl ether (HFE-254), methyl difluoroacetate, ethyl difluoroacetate, perfluoroalkyl ethyl acrylate, ethylene tetrafluoroethylene copolymer (ETFE), soluble polytetrafluoroethylene (PFA), polyfluoroethylene propylene (FEP), hexafluoropropylene (HFP), hexafluoroethylene oxide (HFPO) Perfluorinated n-propyl vinyl ether (PPVE), fluorine gas (F2), surfactant (PFPE), calcium chloride dihydrate, desulfurization mother liquor for acid production and other products.

Fluorinated lithium salt

Chengdu Yuneng Technology's 7GWh energy storage and consumer battery project will be put into operation within the year

According to People's Daily, the construction progress of Chengdu Yuneng Technology's "7GWh Energy Storage and Consumer Battery" production base project, with a total investment of 5 billion yuan, continues to be full. After the project is put into operation, it will become the first lithium battery production enterprise in Jianyang City, injecting new energy into the new energy and new materials industry of Chengdu while empowering light industrialization in Jianyang City.

It is understood that the first phase of the project plans to invest about 800 million yuan, build a research and development center, production workshop, etc., and build four automated production lines for large cylindrical energy storage lithium batteries and consumer batteries, forming a daily production capacity of 120000 large cylindrical energy storage lithium batteries and consumer batteries. The second phase of the project plans to invest approximately 4.2 billion yuan to construct production workshops, pack workshops, warehouses, research and development buildings, etc. After the project is completed and put into operation, an annual production line of 7GWh lithium batteries will be formed, and a lithium battery production base integrating cylindrical, soft pack, square and other types of lithium batteries will be built.

On September 15th of this year, the "7GWh Energy Storage and Consumer Battery Production Base" project of Chengdu Yuneng Technology Co., Ltd. held a commencement ceremony in the Chengdu Aerospace Industry Functional Zone. The project made its first contact at the end of June and signed an investment cooperation agreement in August. It is expected to be put into operation by the end of December and meet the requirements of the above standards, which is expected to create a new speed for major manufacturing projects in Jianyang City from signing to completion and production.

Warren's Lithium Iron Phosphate and Sodium Battery Cathode Material Production Base Signed Contract in Anyang, Henan Province

On September 19th, the signing ceremony for the Warren polyanion cathode material project was held.

It is reported that the Volente polyanion cathode material project is located in the Advanced Manufacturing Development Zone of Long'an District, Anyang City, Henan Province, with a total investment of 1.058 billion yuan and an area of 20 hectares. It is planned to build a production base for 30000 tons of lithium iron phosphate and sodium battery cathode materials. Among them, the first phase covers an area of 8 hectares and plans to build a 10000 ton lithium iron phosphate cathode material production line.

The positive electrode material project of Lepu sodium battery started in Lu'an, Anhui Province

On the morning of September 16th, the mobilization meeting for the 20000 ton advanced sodium ion battery positive electrode material project and panoramic digital zero carbon factory of Dongjian Group Lepu Sodium New Materials (Lu'an) Co., Ltd. was held in Lu'an, Anhui.

It is understood that Lepu Sodium Power plans to invest a total of approximately 5.5 billion yuan in the production of 20000 tons of positive electrode materials, 20000 tons of negative electrode materials, and 10GWh energy storage system products for sodium ion batteries. The total investment for the positive electrode material project started this time is about 1 billion yuan, which will be constructed in two phases. It is located in Jin'an Development Zone, Lu'an City, covering an area of 128 acres and is planned to produce 20000 tons of sodium ion battery positive electrode materials annually.