Fluorochemical Weekly Report: The landing of HFC quotas drives the market for third-generation refrigerants to heat up ahead of schedule

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One week market

Refrigerant: The surge in individual products drives the off-season market to heat up ahead of schedule

This week, the price of R143a surged, driving the off-season market to heat up ahead of schedule. Weekly market characteristics: Just entered 2024, the overall market is still in the off-season of production and sales, with a lack of support for demand. The prices of upstream basic raw materials are mainly fluctuating downward, and the pressure on refrigerant costs is generally weakening. From the perspective of refrigerant production and sales scale, mainstream refrigerant factories continue to maintain a mentality of being reluctant to sell and encouraging growth, maintaining a reduction in load and production; On the other hand, at the beginning of the new year, there was no significant boost in downstream demand, and actual transactions were limited. It is worth noting that according to the quota accounting method of the Ministry of Environmental Protection, the overall supply of R143a in 2024 is limited, and there is a gap in domestic sales quotas. Only Yonghe, Juhua, and Sanmei factories have effective production capacity. The tight supply of goods has led to a doubling of prices in the past month, and the corresponding mixed refrigerant prices have also increased, with R404A and R507 both increasing by more than 30%. In addition, mainstream refrigerant products have been driven up in price by this, and it is expected that the refrigerant market will experience a strong upward trend in the short term.

Fluorinated polymers: Rapid production capacity growth, price fluctuations approaching cost

This week, the supply of fluorinated polymers in the market continued to be loose, with flat demand during the off-season and weak overall cost support. Mainstream product prices are under pressure to maintain stable operation. In terms of specific products, the price pressure of the main monomer raw materials R22 and R142b determines that in a weak market environment, the supply and demand relationship of TFE series and VDF series fluorinated polymers is weak, coupled with limited cost support, and prices are still at a low level to maintain stability. It is worth noting that mainstream fluoropolymer production enterprises, after experiencing an upward and downward industrial chain, as well as further diversification of product types, although reducing costs and ensuring supply effectively improve, the problem of overcapacity is prominent. In the future, mainstream products will face profit margins being squeezed, and the industry pattern will also be restructured.

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Weekly News

Fluorine raw materials&refrigerants

2024 hydrofluorocarbons (HFCs) quota officially announced

On January 11th, the website of the Ministry of Ecology and Environment released a public notice on the issuance of quotas for the production, use, and import of ozone depleting substances and hydrofluorocarbons in 2024. The Public Notice will publicize the production, use, and import quotas of hydrochlorofluorocarbons and hydrofluorocarbons for the year 2024. According to the quota review, leading enterprises such as Juhua, Sinochem Blue Sky, Sanmei, Yonghe, Dongyue, and Meilan will have greater advantages.

Details click: Quota has been issued! Announcement of Production, Use, and Import Quota Issuance of Hydrofluorocarbons (HFCs) for the Year 2024

Hubei Jingzhou plans to build a 5000 ton new fluorine-containing fire extinguishing agent project

On January 9th, the website of the Jingzhou Ecological Environment Bureau announced the first phase of the annual production of 5000 tons of new fluorine-containing fire extinguishing agents and electronic new materials project by Hubei Sanfluorine New Materials Co., Ltd.

According to the announcement, the project is located at No. 2 Development Avenue, Lingang Industrial Park, Songzi City, covering an area of 50 acres with a planned total construction area of approximately 20000 square meters; Project construction includes synthesis workshop, mixing and pilot plant, power workshop, comprehensive warehouse, Class A and Class E tank area, comprehensive building and supporting facilities, etc; Annual production of 5000 tons of fluorine-containing fire extinguishing agents, dimers, trimers, lithium-ion fire inhibitors, electronic cooling liquids, cleaning agents, and 560 tons of industrial grade sodium chloride as by-products.

According to information from Aiqicha, Hubei Trifluoro New Materials Co., Ltd. was established in November 2023 and is a wholly-owned subsidiary of Wuhan Trifluoro New Materials Technology Co., Ltd.

Xinfa Group plans to build a high-quality fluorine-containing inorganic salt project in Xinjiang

Recently, in the Yila Lake Circular Economy Industrial Park in Toksun County, the investment project of Toksun Xinjiang Jiaxin Energy Technology Co., Ltd. of China CITIC Group is steadily under construction.

It is understood that Xinfa Group currently has three projects in progress.

Among them, the high-quality fluorine-containing inorganic salt project has a total investment of 20 billion yuan. Currently, the first phase of the project has basically completed the preliminary procedures, with an investment of 2 billion yuan. Construction will start in March 2024, and it is expected to be put into operation by the end of 2024. This project fully leverages the advantages of Xinfa Group's own fluorite mineral resources and the convenient transportation advantages of Tokson. It is the only fluorine chemical enterprise in Xinjiang and even the entire northwest region. The first phase of the project has basically completed the main related procedures such as project approval and energy evaluation. The first phase of the project is expected to enter the construction phase in March 2024 and be fully put into operation in December 2024.

The comprehensive utilization project of fluorine gypsum solid waste has an investment scale of about 630 million yuan and has entered the feasibility study stage. The investment for the waste heat comprehensive utilization power generation project is about 746 million yuan. The project has been completed and preliminary procedures have been carried out.

Fluorinated polymers

Environmental Impact Assessment Publicity for the High Performance Silicone Fluorine New Material Integration Project of Juhua Group

On January 4th, the Department of Ecology and Environment of Gansu Province accepted the high-performance silicone fluorine new material integration project of Gansu Juhua New Materials Co., Ltd.

The project plans to build facilities with an annual production capacity of 20000 tons of pentafluoropropane (R245eb), 30000 tons of HCC-240, 80000 tons of HFC-152a, 120000 tons of HCFC-142b, 360000 tons of industrial silicon, 100000 tons of polycrystalline silicon, 50000 tons of trichlorosilane, (125000 tons of fluoropolymer: 10000 tons of fluororubber, 10000 tons of FEP, 50000 tons of PTFE, 5000 tons of PFA, 50000 tons of PVDF), 29000 tons of HFP, 70000 tons of VDF, 120000 tons of tetrachloroethane, 30000 tons of tetrachloroethylene, 195000 tons of R22, 105000 tons of TFE, etc; Supporting the construction of facilities with an annual output of 760000 tons of methane chloride (360000 tons of chloroform, 130000 tons of dichloromethane, 270000 tons of trichloromethane), 150000 tons of AHF, 300000 tons of calcium chloride, 300000 tons of sulfuric acid, 240000 tons of calcium carbide, 900000 tons of ion exchange membrane caustic soda (self generated waste salt from comprehensive utilization projects), and corresponding facilities.

Hubei Noah New Materials proposes an annual production of 2300 tons of fluorinated electronic materials project

On January 8th, the website of the Ecological Environment Bureau of Qianjiang City announced the annual production of 2300 tons of fluorinated electronic new materials project by Hubei Noah New Materials Technology Co., Ltd.

According to the public announcement, the project is located in the second production workshop of Zekou Industrial Park in Qianjiang National High tech Zone, which is planned to be under construction in the early stage. Two production lines will be installed and constructed, and a new raw material storage tank will be reserved in the tank area. Environmental protection facilities such as exhaust gas and wastewater treatment will be constructed, and others will rely on the projects under construction in the early stage..

The expansion project is planned to be implemented in two phases. After reaching production capacity, the first phase will produce 150 tons of perfluorinated surfactants Noah FS2201 and Noah FS2301 per year, and the second phase will produce 1500 tons of perfluorinated isobutyl methyl ether and 500 tons of perfluorinated isobutyl ether per year.