Fluorochemical Weekly Report: Strong Costs Encounter Weak Demand, Product Prices Stuck

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One week market

Refrigerant: Strong cost support but insufficient demand support, strong market wait-and-see atmosphere

This week, with strong cost support but weak downstream demand, the refrigerant market is on the sidelines. Weekly market characteristics: Upstream basic raw material products such as fluorite powder, hydrofluoric acid, TCE, and PCE have been reduced due to downstream procurement, easing the tight supply situation, and temporarily stabilizing prices; The prices of other raw materials fluctuate at high levels, with relatively small fluctuations. Upstream raw material products still have a willingness to increase prices, but the production and sales of refrigerants and polymers in the market are weak, and there is strong resistance to high prices. Overall, as the year 2024 approaches, the implementation of quota management for HFCs refrigerants has driven some enterprises to layout their inventory in advance. However, the high cost has led to a lack of purchasing enthusiasm among enterprises. Currently, the refrigerant market is mainly dominated by foreign trade orders, and domestic demand is sluggish and the supply of raw materials is generally easing. The refrigerant market has a strong wait-and-see atmosphere, and it is expected to maintain stable and volatile operation in the short term.

Fluorinated polymers: Strong cost support, weak supply-demand balance, stable price consolidation

This week, the rise in raw material prices from upstream sources in the fluoropolymer market has temporarily slowed down. The main monomer raw materials, R22 and R142b, have benefited from stable and exploratory price increases. The supply and demand relationship between TFE series and VDF series fluoropolymers is weak, and rising costs are difficult to drive stable and exploratory price increases for the two series of fluoropolymer products. In terms of specific products, upstream raw material products such as fluorite powder, hydrofluoric acid, and chloroform have strengthened after price increases. In a weak market, strong costs have a significant impact on boosting the entire industry chain. In summary, it is predicted that although the supply and demand relationship of fluorinated polymers may not improve significantly in the short term, the increase in factory maintenance and cost increases are beneficial for price recovery. In the future, the game market between effective supply and actual demand will continue, and there is a high possibility of maintaining stable operation.

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Weekly Highlights

Fluorine raw materials

Jinshi Fluorine Industry's annual production of 25000 tons of electronic grade hydrofluoric acid project has been put into operation

On October 11, 2023, Jinshi Fluorine Industry Hanxin Technology officially put into trial production an annual output of 20000 tons of UP grade and 5000 tons of G5 grade ultra-high purity electronic grade hydrofluoric acid.

The project has a total investment of 1 billion yuan and is located in Jianyang Economic Development Zone. It aims to construct high-end fluorinated fine products such as 50000 tons of electronic grade hydrofluoric acid, 10000 tons of high-purity ammonium bifluoride, 200 tons of hexafluorobutadiene, 200 tons of perfluorobutyl sulfonyl fluoride, 200 tons of perfluorobutyl potassium sulfonate, 2000 tons of fluorine nitrogen mixture, and 6000 tons of hydrogen fluoride pyridine.

Hetai Group plans to build electronic grade hydrofluoric acid, anhydrous aluminum fluoride and other projects in Guangxi

On October 12th, Luxi County held a signing ceremony with Guangxi Hetai Investment Group Co., Ltd. for the projects of 100000 tons of high-quality inorganic aluminum fluoride (anhydrous), 20000 tons of electronic grade hydrofluoric acid, and 10000 tons of lithium hexafluorophosphate. It is understood that the project plans to have a total investment of approximately 1.5 billion yuan and will be constructed in two phases. The first phase will invest 500 million yuan and will construct two 30000 ton and 60000 ton high-quality inorganic aluminum fluoride production lines. The second phase will invest 1 billion yuan to build a production line for 20000 tons of electronic grade hydrofluoric acid and 10000 tons of lithium hexafluorophosphate.

In addition, Hetai Group, through its subsidiary Guangxi Pingguo Hetai Technology Co., Ltd., is constructing a 120000 ton dry process aluminum fluoride production line project in two phases within the comprehensive chemical park of Pingguo Industrial Zone in Baise City, Guangxi. The first phase of the project, with an annual production capacity of 60000 tons, was completed and put into operation in 2020.

luoropolymer

Zhuhai Liwen plans to produce an annual production of 3000 tons of fluoroethylene carbonate (FEC) project

Recently, the Zhuhai Ecological Environment Bureau accepted and announced the environmental impact report of the annual production of 3000 tons of fluoroethylene carbonate and supporting engineering technology renovation project of Zhuhai Liwen New Materials Co., Ltd. The announcement shows that in order to adapt to market demand and development planning, and increase the production capacity of fluoroethylene carbonate, Zhuhai Liwen New Materials Co., Ltd. plans to invest 200 million yuan to build an annual production of 3000 tons of fluoroethylene carbonate and supporting engineering technology renovation project on the production land of the original 2530 tons/year fluoroethylene new material phase II project of Zhuhai Liwen New Materials Co., Ltd.

The project is divided into two phases. The first phase has an annual production capacity of 1500 tons of fluoroethylene carbonate, and is expected to start production in June 2024; The construction scale of the second phase is to produce 1500 tons of fluoroethylene carbonate annually, and it is expected to start production in June 2025.

According to data, Zhuhai Liwen New Materials Co., Ltd. was established on September 25, 2017, located in the Petrochemical Zone of Gaolan Port Economic Zone in Zhuhai. It mainly engages in the production of fluoroethylene carbonate (FEC) series products and the research and development of related products.

Yongchuang Pharmaceutical IPO, raising 150 million yuan for fluorinated fine chemicals

Recently, Jiangsu Yongchuang Pharmaceutical Technology Co., Ltd. (hereinafter referred to as "Yongchuang Pharmaceutical") disclosed its prospectus (application draft), with the sponsor being open-source securities.

This IPO aims to raise 150 million yuan, mainly for the intelligent factory of fluorine containing fine chemicals, environmental protection technology renovation, and R&D capacity enhancement projects.

Yongchuang Pharmaceutical is mainly engaged in the research and development, production, and sales of trifluoromethylene series fine chemicals. According to the industry classification, it belongs to the fluorine containing fine chemical industry. According to the downstream field of fine chemicals, its main products are widely used in fields such as pesticides, pharmaceuticals, and electronic new materials. The company's main products include 2-bromo-5-fluorotrifluoromethyl toluene, 2,4-dichloro-3,5-dinitrotrifluoromethyl toluene, and p-trifluoromethylthiophenol. Among them, 2-bromo-5-fluorotrifluoromethylbenzene was the product with the highest cumulative sales volume during the company's reporting period.