Fluorochemical Weekly Report: Refrigerant Prices Rise Widely, Factories Reluctantly Sell Spare Stores

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One week market

Refrigerant: HFCs quota plan clearly defined, limited supply boosted factory confidence

This week, due to factory production cuts and price guarantees, mainstream refrigerant prices have fluctuated upwards. Weekly market characteristics: Upstream basic raw material products such as sulfuric acid, methanol, calcium carbide, and dichloromethane have overall improved transactions, and prices have all risen within a narrow range; Loose supply of chloroform and trichloroethylene, weak demand leading to price fluctuations; The prices of other raw materials maintain stable operation, and the fluctuation in cost has little impact on refrigerant costs. As the end of the year approaches, the domestic and foreign sales orders for refrigerants are coming to an end, and overall production and sales are relatively weak. However, according to the HFCs refrigerant quota implementation plan released by the Ministry of Ecology and Environment on November 6, the competition pattern for various refrigerant products in 2024 is clear. Whether top enterprises produce normally will have a significant impact on the supply and demand pattern, and abnormal production may lead to a significant short-term price jump. Due to the strong expectation of industry supply reduction next year, some factories have suspended quotation and order taking, arranged inventory in advance, and have strong confidence in rising prices. It is expected that the overall tight supply will support the operation of price exploration in the future.

Fluorinated polymers: bleak production and sales situation, factory production reduction and price protection

This week, the cost support of the fluoropolymer market fell within a narrow range, and the loose supply and demand relationship continued. In addition, the collective weakness of the main application areas has determined that the production and sales situation of mainstream fluoropolymer products is difficult to improve, and the weakness is mainly maintained. From a product perspective, the prices of the main monomer raw materials R22 and R142b have been under pressure and consolidation, which has led to weak cost support for TFE series and VDF series fluoropolymers. Although mainstream fluoropolymer product prices have continued to reach low levels, the overall market is in a dilemma of ups and downs in the context of a bearish industry, and the future market will continue to be a bleak situation of multiple factor games.

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Weekly Highlights

Refrigerant

Kemu Announces Expansion of HFC-152a Production Capacity in the United States

On November 14th, Kemu announced an increase of approximately 20% in the production of HFC-152a. As the only supplier of HFC-152a in the United States, this expansion of Komo will not only help meet customers' demand for low global warming potential (GWP) propellants and foaming agents, but also reduce VOC (volatile organic compounds) in consumer goods and support the growing demand for thermal insulation foam products.

The expansion of production capacity will take place at the company's manufacturing plant in Ingerside, Texas, which is 20 minutes away from Corpus Christie and is expected to be completed by mid-2024.

Kangyuan Chemical proposes projects with an annual production capacity of 8000 tons of R227ea and others

On November 14th, the Zhizao New City Branch of Quzhou Ecological Environment Bureau announced the R227ea, C18 and other projects of Zhejiang Kangyuan Chemical Co., Ltd. The announcement shows that the project is located in Quzhou Zhizao New City, with a total investment of 40 million yuan. It is expected to be put into operation in December 2024. The project plans to renovate and expand an annual production capacity of 8000 tons of heptafluoropropane (HFC227ea), 1000 tons of 2,3-dichloroafluorobutane (C18), and 2500 tons of ODS recycling and utilization equipment within the existing factory area.

Among them, ODS contains an annual disposal capacity of 350 tons of 2,2-dichloro-1,1,1-trifluoroethane (R123), 300 tons of 1,1-difluoro-1,2-dichloroethane (R132b), 350 tons of 1-chloro-2,2,2-trifluoroethane (R133a), 500 tons of hexafluoropropane (R236fa) fire extinguishing agent, and 1000 tons of heptafluoropropane (R227ea).

Fluoropolymer

The 20000 ton PVDF project of Jinchuan Group is under construction

On November 16th, Gansu Environmental Impact Assessment Information Network announced the 20000 ton/year high-end PVDF resin industry chain project of Gansu Jinchuan Jinruilin Chemical Co., Ltd. The project mainly constructs 12600 tons/year R152a production unit, 18000 tons/year R142b production unit, 11000 tons/year VDF production unit, 10000 tons/year PVDF production unit, and 40000 tons/year polyaluminum chloride production unit. Auxiliary production and living facilities include: R152a tank farm, R142b tank farm, auxiliary material tank farm, Class A warehouse, power transformation and distribution room, control room, incineration device, calcium fluoride device, etc. The foundation laying ceremony of the project was held on June 10th.

Gansu Jinchuan Jinruilin Chemical Co., Ltd. was established in 2023, jointly invested by Jinni Group and Jinchuan Group Chemical Co., Ltd. Among them, Jinchuan Group Chemical Co., Ltd. is a wholly-owned subsidiary of Jinchuan Group Co., Ltd., a Fortune 500 enterprise. It has a production capacity of over 1.5 million tons/year for chemical products such as caustic soda, PVC resin, potassium sulfate, caustic soda, hydrochloric acid, liquid chlorine, dichloroethane, etc; Jinchang Cement (Group) Co., Ltd. is a primary holding subsidiary of Jinchuan Group Co., Ltd., with three major industrial sectors: cement building materials, chlor alkali chemical, and ammonia alkali chemical.

The joint proposal of China and agriculture to build projects such as Bufloxacin technical solution has formed a domestic first mover advantage

On October 31st, Shandong Zhongnong United Biotechnology Co., Ltd. (referred to as "Zhongnong United") announced that the company plans to invest in the construction of a technology transformation center project, a 700t/a Buflufen raw material project, a tank area, warehouse, and production supporting engineering project through its wholly-owned subsidiary Shandong United Pesticide Industry Co., Ltd., with an estimated total investment of 582 million yuan.

The China Agriculture Union stated that the total investment of the Bufloxacin acaricide raw material project is about 167 million yuan, which is beneficial for the company to optimize its product structure and form a domestic first mover advantage for the raw material product.

Butafluoride is a new acyl acetonitrile acaricide developed by Otsuka Chemical Company in Japan. Its patent expires in 2023 and is a non endothermic acaricide with a long shelf life. It can be used in various crops such as fruit trees, vegetables, tea trees, and flowers.

Zhongjuxin plans to build two fluorine containing electronic special gas projects

On November 10th, the Zhizao New City Branch of the Quzhou Ecological Environment Bureau announced the electronic fluorine gas project of Zhejiang Borui Zhongniao Technology Co., Ltd., a subsidiary of Zhongjuxin Holdings, and the newly built 175 tons of high-purity hexafluorobutadiene project of Zhejiang Borui Electronic Technology Co., Ltd., a wholly-owned subsidiary.

The electronic fluorine containing gas project mainly adopts the technology or process of preparing high-purity tungsten hexafluoride through processes such as fluorine gas generation, tungsten hexafluoride synthesis, and purification, forming an annual production capacity of 600 tons of tungsten hexafluoride. The production capacity of Phase I and Phase II projects are 200 tons/year of tungsten hexafluoride and 400 tons/year respectively;

The new project with an annual production capacity of 175 tons of high-purity hexafluorobutadiene is planned to invest 15.45 million yuan. A new set of hexafluorobutadiene distillation and purification device will be built in the existing factory building. By purchasing purification equipment such as distillation and adsorption, as well as related auxiliary equipment, and supporting auxiliary facilities such as a new fire pump room, a new production capacity of 175t/a of high-purity hexafluorobutadiene will be achieved.