The combination of favorable policies and rising prices of raw materials drives the improvement of industry prosperity

one

One week market

Refrigerant: Exploring the Rise of Raw Material Prices and Stabilizing the High Level of Refrigerant

This week, overall production and sales are still good, and mainstream HFCs refrigerant prices have stabilized at a high level. Characteristics of the weekly market: Due to the explosive control measures held during the Two Sessions and the influence of weather, the tight supply of fluorite powder has led to a narrow upward trend in prices; The rest of the raw materials are mainly supported by downstream procurement recovery and price exploration increases. Since the issuance of HFCs refrigerant quotas, factories have been producing in an orderly manner, resulting in low industry operating rates and overall tight supply. From the perspective of domestic and export markets, the mainstream HFCs refrigerant domestic trade supply is tight. Among them, R32 and R410A have limited supply except for downstream air conditioning plants, and the supply is less than the demand to support high price fluctuations; But the foreign trade supply is temporarily loose, and the price increase is relatively slow. Based on the supply and demand relationship and the prediction of practitioners, the decreasing order of the scarcity of existing HFC product quotas is as follows: HFC-143a>HFC-125>HFC-134a>HFC-32>HFC-152a>others. It is expected that refrigerant prices will continue to rise at high levels in 2024.

Fluoropolymers: Maintenance of leading enterprises combined with price increases in raw materials, downstream product stability observation

This week, the maintenance of leading companies in the fluoropolymer market and the increase in raw material prices are the short-term positive aspects of the market. The slow recovery of demand in downstream related industries and weak supply-demand relations are the short-term negative aspects of the market, and the mixed effects of positive and negative factors will continue. From the perspective of the industrial chain, Juhua's maintenance plan this month will help alleviate the supply-demand contradiction. The price increase of basic raw materials such as calcium carbide, chloroform, and liquid chlorine will drive the prices of monomer raw materials such as R22 and R142b to remain strong, providing upward support for TFE and VDF series fluorinated polymers. Considering that supply and demand are still the core factors determining the short-term market price trend, the future price of fluorinated polymers will continue to improve positively with the recovery of demand.

two

Weekly News

Environmental Impact Assessment of Jiangxi Chengju Pharmaceutical's Annual Production of 405 Tons of Pharmaceutical Intermediates and Raw Materials Project (Phase I)

Shanghai, China, February 29, 2024- Honeywell (NASDAQ code: HON) and Hisense Home Appliances Group Co., Ltd. (hereinafter referred to as "Hisense") have reached a cooperation in the field of refrigerant applications. Relying on mature refrigerant technology and solutions, Honeywell provides Hisense with efficient and environmentally friendly refrigerant Solstice ® 454B (R-454B) and related technical support, while collaborating on market promotion, will promote the application of technologies with lower global warming potential in the industry, and help promote the sustainable development of the refrigeration industry.

Haohua Technology: Peroxide vulcanized fluororubber for new energy vehicles has already been supplied in bulk

Recently, Haohua Technology (600378) stated through the Interactive Easy platform that from a production capacity perspective, the main enterprises in the domestic fluorine rubber industry include Zhejiang Juhua, San'aifu, Shenzhou, Meilan, Haohua Technology, etc. Haohua Technology's subsidiary Zhonghao Chenguang and its joint venture company Chenguang Kemu Fluorine Materials (Shanghai) Co., Ltd. has a total fluorine rubber production capacity of 5500 tons/year, accounting for about 15% of the industry's production capacity in the domestic market. In 2022, Zhonghao Chenguang overcame the technical difficulties of peroxide vulcanized fluororubber and achieved mass supply of peroxide vulcanized fluororubber for new energy vehicles.

Environmental Impact Assessment Announcement of Dongyue Future Hydrogen Energy 5kt/a Meltable Polytetrafluoroethylene (PFA) Project

On March 5, 2024, according to the Ecological Environment Bureau of Zibo City, Shandong Dongyue Future Hydrogen Energy Materials Co., Ltd. accepted and publicly announced the environmental impact report of the 5000t/a fusible polytetrafluoroethylene (PFA) project. This environmental impact assessment report shows that, given the broad prospects of PFA and the stable supply of raw materials in the factory, the under construction 1000t/a production capacity can no longer meet the company's development needs. In order to improve competitiveness in the international market and accelerate the extension of the company's downstream industrial chain. Future Hydrogen Energy plans to invest 8.70 million yuan (environmental protection investment 4.5 million yuan, accounting for 0.5% of the total investment), located in the existing northern plant area of Dongyue Fluorosilicon Materials Industrial Park. The project aims to construct a 5000t/a fusible polytetrafluoroethylene (PFA) project, covering an area of 3570m2, mainly purchasing more than 600 sets of HF electrolysis equipment, reaction vessels, distillation towers, drying equipment, purification equipment, etc; Supporting facilities and some environmental protection projects will be constructed, while the rest will rely on existing and ongoing projects.

Fuduobang Technology Company acquires fluorite mine

On March 5th, Fuduobang Technology Company and Jiulonghu Mining Company signed a 36.3% equity transfer agreement for Jinpeng Mining Company in Qingliu County. Jinpeng Mining Company has a fluorite exploration certificate in the Yupeng Daban mining area of Qingliu County, with a exploration area of 15.26 square kilometers. Fuduobang Technology Company has acquired 36.3% equity of Jinpeng Mining Company held by Jiulonghu Mining Company, becoming the largest shareholder of Jinpeng Mining Company and leading the exploration and mining work of the fluorite mine in Yupeng Daban mining area.

Xufeng Jinghua plans to build an annual production of 10000 tons of fluorine-containing fine chemicals project

According to Liaoning Xufeng Fine Chemicals Co., Ltd., Xufeng Fine Chemicals plans to invest 1 billion yuan to build an annual production of 10000 tons of fluorine-containing fine chemicals project, relying on years of deep cultivation in fluorine chemical research and development, engineering transformation, and market advantages. The project was approved by the Fuxin Development and Reform Commission in November 2023. The main construction contents include: an annual production of 1000 tons of difluoroethanol, 1000 tons of difluoroethanolamine, 3750 tons of 2,2-difluoroethyl acetate, 3600 tons of difluoropyrazolic acid, and 650 tons of trifluoroacetic acid.