Fluorochemical Weekly Report: End of Year Transactions Light HFCs Quota Issue Expected to Boost Business Prosperity

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One week market

Refrigerant: End of year market transactions are light, waiting for quota issuance for the new year

This week, the factory continued to be reluctant to sell inventory, resulting in weak market transactions and stable operation of mainstream refrigerant prices. Weekly market characteristics: At the end of the year, the overall market was in a low season of production and sales. Affected by weak demand, prices of upstream basic raw materials fluctuated and declined. Among them, prices of liquid chlorine, sulfuric acid, methanol, and dichloromethane all fell narrowly; Trichloromethane is supported by the mentality of production enterprises to raise prices, leading to an increase in prices; The limited availability of calcium carbide has led to a surge in prices due to tight supply of goods; The prices of other raw materials are mainly weak and consolidating, and the overall cost pressure of refrigerants has weakened. From the perspective of refrigerant production and sales scale, on the one hand, a new quota year is approaching, and mainstream refrigerant factories are suspending orders, reluctant to sell spare inventory, and have low shipping intentions; On the other hand, at the end of the year, due to restrictions on export licenses, export orders have basically stagnated, and actual transactions of domestic trade orders are limited. In summary, the current refrigerant market is characterized by weak supply and demand, with factories mainly reducing production and stocking up. It is expected to enter the new fiscal year, and downstream demand will slowly recover. Various factories will reduce their operating loads based on inventory conditions, and prices will operate in a narrow range in the short term.

Fluorinated polymers: Rapid supply growth leads to sustained decline in profitability, with prices repairing at the bottom

This week, the fluoropolymer market continued to consolidate during the off-season, and the increase in factory inspections at the end of the year is conducive to the contradiction between environmental supply and demand. The price of fluoropolymer products within the week continues to approach the cost line, with significant cost pressure on factories that purchase raw materials and have incomplete industrial chains. From a product perspective, the prices of TFE and VDF series products have both retreated to low levels, approaching the cost line. Recently, there has been a significant differentiation in price fluctuations, and the supply-demand contradiction for the same product for different purposes has become more pronounced. Overall, under the combined influence of weak supply and demand, limited cost fluctuations, and slower growth in downstream application industries, the short-term fluoropolymer market will continue to consolidate at the bottom.

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Weekly News

Fluorine raw materials

Juhua Group's annual production of 200000 tons of fluorite ore comprehensive development and utilization project has started construction

On December 25th, the groundbreaking ceremony for the comprehensive development and utilization of 200000 tons of fluorite ore by Juyuan Mining of Juhua Group was held.

The mining area of this project is located in Cuntou Town, Kaihua County, and is a large single fluorite mine in China. It is expected to be completed and put into operation in 2025. Previously, with strong support and assistance from the governments of Quzhou City, Kaihua County, and shareholder units, the project took 9 months, passed 11 administrative approvals, and successfully obtained mining and new exploration certificates.

Fluorosilicate method! Wengfuxiang's annual production of 50000 tons of hydrofluoric acid project is expected to start production in April next year

On December 26th, the Ecological Environment Bureau of Kunming City announced its proposed approval opinions on the Environmental Impact Assessment Report for 30000 tons/year anhydrous hydrogen fluoride and 20000 tons/year electronic grade hydrofluoric acid projects.

According to the Huichang County Bureau of Industry and Information Technology, the project started construction on July 21 this year. The main body of the project, Yunnan Wengfu Xiangfeng Fluorosilicon New Materials Co., Ltd., is jointly established by Wengfu (Group) Co., Ltd. and Yunnan Xiangfeng New Energy Technology Co., Ltd. Wengfu Group holds 55% of the shares, and Xiangfeng New Energy Technology Co., Ltd. holds 45% of the shares.

The project has an investment of approximately 470 million yuan and is located in the western area of the chemical park of the Anning Industrial Park in Luyi Street, Anning City, Kunming City, Yunnan Province. The project covers an area of 107 acres and is expected to be completed and put into operation in April 2024.

In November 2023, China's calcium carbide exports increased by 15% compared to the previous month by 12000 tons

In November 2023, China's export volume of calcium carbide was about 12000 tons, including 3711 tons exported to India, 1314 tons exported to Thailand, and 1092 tons exported to Nigeria.

From January to November 2023, the cumulative export volume of calcium carbide in China was 117600 tons, with India being the largest export destination with an export volume of 38700 tons, accounting for 32.91% of the total export volume. The export amount is 184.6761 million yuan, with an average export amount of 4771.99 yuan/ton.

Fluorinated polymers

Haohua Technology plans to build a new fluorine containing electronic special gas project in Zigong, including nitrogen trifluoride

On December 28th, Haohua Technology announced that its wholly-owned subsidiary Haohua Gas Co., Ltd. plans to establish a project company Haohua Gas (Zigong) Co., Ltd. to invest in the construction of the Southwest Electronic Special Gas Project, with a total investment of 1145.72 million yuan.

The announcement shows that the project will build a new 6000 ton/year electronic grade nitrogen trifluoride production unit, supporting the construction of a 4000 ton/year electronic grade high-purity ammonia production unit, a 100000 ton/year full liquid nitrogen air separation production unit, and necessary public works and auxiliary facilities. The planned construction period is 36 months.

Benefiting from the booming development of downstream industries, the market size of China's special gas industry continues to expand, and the electronic gas market is showing a rapid upward trend. Dongwu Securities predicts that by 2030, the scale of China's special gas market will be about 194.1 billion yuan, and the scale of the electronic special gas market will reach 143.6 billion yuan. The proportion will reach 74% by 2030.

Xingfu New Materials Obtains a New Round of Strategic Financing from Sinochem Capital

On December 23rd, Liaoning Xingfu New Materials Co., Ltd. (hereinafter referred to as Xingfu New Materials) completed a new round of strategic financing from Sinochem Capital.

Xingfu New Materials was founded in 2014 and is a professional and innovative fine chemical production enterprise. Its main products include 4,4 '- difluorodiphenylketone (DFBP), 2,4' - difluorodiphenylketone, fluorobenzene, and fluorotoluene series. It is one of the world's largest suppliers of the core monomer of special engineering plastic polyether ether ketone (PEEK), 4,4 '- difluorodiphenylketone (DFBP).

It is understood that Xingfu New Materials will complete the A round of financing in December 2022. The investors will be Chuanliu Investment, Dedao Housheng Investment and Ruixia Investment. The A+round of financing will be completed in May 2023. The investors will be wutong Tree Capital, Haitong New Energy and Hesheng Zhongde. This month, a new round of strategic investment will be completed. The investor will be Sinochem Capital.

Jiangxi Liwen Fluoride Phase II Project Successfully Launched

On December 26th, Jiangxi Liwen Fluoride Plant built a new third set of 10000 ton tetrafluoroethylene (TFE) monomer unit, which was integrated into the system and successfully produced 99.9999% TFE after a major overhaul of the plant. This marks the completion of the construction of Jiangxi Liwen Fluoride Phase II project.

The third set of 10000 ton tetrafluoroethylene monomer unit newly constructed by Liwen Chemical started construction in December 2022. Currently, the 704B1 unit has successfully carried out energy-saving renovation measures on the basis of the second phase, including steam superheater (R22 preheating section technical renovation, discharge outlet improvement), hot water system (replacing steam heating), adding 5 ℃ water system (saving -15 ℃ refrigerant), direct cooling system, etc. At the same time, with the assistance of APC control, energy consumption is further controlled, Reducing production costs, achieving the goal of high-end and intelligent development, and moving towards zero manual operation.