Fluorochemical Weekly Report: Refrigerant Supply Tightens, Industry Expects to Gain Future Market

one

One week market

Refrigerant: Expected tightening of quotas next year, with practitioners optimistic about the future market

This week, due to the factory's reluctance to sell at high prices, mainstream refrigerant prices have remained strong. Market characteristics: Upstream basic raw material products such as dichloromethane, sulfuric acid, and methanol have tightened supply, with prices fluctuating upwards; The overall transaction volume of liquid chlorine is weak, with a narrow decline in price; Supply of trichloroethylene is loose, and prices are weak and volatile; The prices of other raw materials are temporarily stable, but there is a strong expectation of a decline in the pricing of hydrofluoric acid next month. The cost side raw material prices fluctuate narrowly, and the cost of refrigerants is relatively lower. 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, with fewer actual transactions. Most factories only deliver old orders. 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, and the supply of each product is relatively limited. Whether top enterprises produce normally will have a significant impact on the supply and demand pattern. In the short term, stimulated by quota policies and the sharp rise in R143a prices, the atmosphere of the refrigerant market has rebounded, and factories have a strong mentality of being reluctant to sell and replenish inventory. It is expected that there will still be a narrow range of price increases in the future.

Fluorinated polymers: weak cost support, little improvement in demand, continuing weak trend

This week, the fluorinated polymer market continued to show a weak trend, with weak support on the cost side and little improvement on the demand side. Supply side factories reduced production to maintain prices, and taking orders and scheduling production has a positive effect on easing the supply and demand relationship in the industry. The combination of multiple negative factors determines that mainstream fluorinated polymers will continue to suffer in the short term and remain stable. From a product perspective, the core monomer raw material products R22 and R142b were initially affected by fluctuations in the price of basic raw materials, but later on, with the weakening of upstream costs and the simultaneous decline in downstream product volume and price, the TFE series and VDF series are collectively under pressure. Considering that the current prices have reached a low level, there is not much room for further adjustment in the future market, and the entire series of fluoropolymer products will still remain stable.

two

Weekly News

Refrigerant

Inner Mongolia plans to build a high-end refrigerant, fluoropolymer, and lithium battery new material project

On the afternoon of September 22, the "Xilingol League 2023 Duolun County Chemical Investment Promotion Special Session and Low Carbon Innovation Technology Forum Conference" was successfully held. At the investment promotion event, Longjing High end Fluoropolymer and Lithium Battery New Materials signed a contract on site. The project was constructed by Longjing Fluorochemical Co., Ltd. with a total investment of 6.778 billion yuan. The main construction projects include an annual production of 240000 tons of anhydrous hydrogen fluoride, 180000 tons of aluminum fluoride, 600000 tons of sulfuric acid, 60000 tons of UP grade electronic hydrofluoric acid, 20000 tons of lithium hexafluorophosphate, 20000 tons of sodium hexafluorophosphate, 3000 tons of lithium difluorosulfonate, 50000 tons of dimethyl carbonate, 20000 tons of PVDF, and 20000 tons of PTFE, 10000 tons of R1234yf and supporting public works.

In early 2024, the United States will ban the use of a series of refrigerants such as R134a in chillers

The EPA's refrigerant ban shows that starting from January 1, 2024, multiple refrigerants are prohibited from being used in volumetric and centrifugal chillers, including high GWP refrigerants R134a, R404A, R227ea, R410A, and R407C. However, the ban also states that there are no restrictions on HFC-134a used on military ships and HFC-134a and R-404a used on manned spacecraft and related support equipment.

Changshu San'aifu plans to expand the production capacity of low-carbon refrigerants such as HFO-1234yf and HFO-1234ze (E)

On October 16th, the Suzhou Municipal Bureau of Industry and Information Technology announced the energy-saving review of Changshu San'aifu Zhonghao Chemical New Materials Co., Ltd.'s annual production increase of 1200 tons of tetrafluoropropylene 1234yf, 500 tons of hexafluoropropane 236ea, 150 tons of tetrafluoropropylene 1234ze (E), and 1200 tons of by-product hydrofluoric acid technology transformation project..

According to the public announcement, Changshu San'aifu Zhonghao Chemical New Materials Co., Ltd. plans to update and purchase domestic equipment such as hydrogen membrane separation unit, degassing tower, distillation tower, heat exchanger, and storage tank, adjust the formula of the first step hydrogenation reaction catalyst, add the fourth step high boiling substance distillation unit, reuse the original 1234yf storage and transportation facilities, and add 236ea and 1234ze (E) Class D product storage tanks, And carry out applicability renovations on the original production and public auxiliary facilities and equipment of the tetrafluoropropylene unit to achieve an annual increase of 1200 tons of tetrafluoropropylene 1234yf, 500 tons of hexafluoropropane 236ea, 150 tons of tetrafluoropropylene 1234ze (E), and a byproduct of 1200 tons of aqueous hydrofluoric acid (30%).

Fluorinated polymers

The Environmental Impact Assessment of Gansu Juhua High Performance Silicone Fluorine New Material Integration Project has ended

On October 16th, the website of the Ecological Environment Bureau of Yumen City announced the high-performance silicone fluorine new material integration project of Gansu Juhua New Materials Co., Ltd.

According to the public announcement, the project is located in the old city chemical industrial park of Yumen Economic Development Zone. The project plans to build new projects with an annual output of 360000 tons of industrial silicon, 100000 tons of polycrystalline silicon, 50000 tons of trichlorosilane, 125000 tons of fluoropolymers (fluororubber, FEP, PTFE, PFA, PVDF, etc.), 40000 tons of HFP, 20000 tons of pentafluoropropane, 30000 tons of HCC-240, 80000 tons of R152a, 120000 tons of R142b, 70000 tons of VDF, 300000 tons of trichloroethane, 150000 tons of tetrachloroethane, and 30000 tons of tetrachloroethylene 200000 ton R22, 120000 ton TFE and other equipment

In addition, supporting facilities such as 150000 tons of VCM, 760000 tons of methane chloride, 200000 tons of AHF, 300000 tons of calcium chloride, 300000 tons of sulfuric acid, 360000 tons of calcium carbide, and 900000 tons of ion exchange membrane caustic soda (comprehensive utilization of self-produced waste salt in this project) will be constructed

Henan Pingdingshan plans to build an annual production of 100000 tons of hydrofluoroethane project

On November 15th, the annual production of 100000 tons of hexafluoropropyl trifluoroethyl ether (HFE-449mec-f) project by Baofeng County Guanda New Materials Co., Ltd. was announced.

According to the public announcement, the project is located in the Coal Circular Economy Industrial Park in Baofeng County, Pingdingshan City, Henan Province, with a total investment of 780 million yuan. The project aims to construct an annual production capacity of 100000 tons of hexafluoropropyl trifluoroethyl ether, including 20000 t/a for Phase I and 80000 t/a for Phase II. This project uses hexafluoropropylene (HFP) and trifluoroethanol (TFEA) as raw materials to synthesize hexafluoropropyl trifluoroethyl ether through etherification reaction, using ethylene glycol as solvent and potassium carbonate as catalyst. According to the project feasibility report, the annual operating revenue (including value-added tax) of this project after completion is 5.2 billion yuan, with a total profit of 147 million yuan and a net profit of 110 million yuan.

The project product, hexafluoropropyl trifluoroethyl ether, is regarded as an excellent electrolyte solvent, electronic component leakage liquid, electronic equipment cleaning, heat transfer fluid, coolant, diluent, and special purpose solvent. With the widespread application of emerging technologies such as 5G, artificial intelligence, and cloud computing, data centers will face higher power density and cooling needs. Traditional cooling agents are difficult to meet the needs of future data centers. Fluorinated liquid, due to its insulating and non flammable inert properties, will not have any impact on equipment and is currently the most ideal and widely used immersion cooling liquid. Hexafluoropropyl trifluoroethyl ether is also an ideal fluorinated cooling liquid due to its non combustibility, non ozone depletion, appropriate boiling point, and low greenhouse effect, with broad market prospects.