HFC Refrigerant Continues Strong Expansion and Low Level Stability Maintenance of Fluoropolymer

One week market

Refrigerant: General increase in raw materials combined with supply shortage. Main HFCs refrigerant prices are exploring price increases. Operation

This week, the cost support for refrigerants has generally increased, and downstream has entered the peak season of production and sales, with mainstream HFCs refrigerant prices exploring an upward trend. Weekly market characteristics: Due to reduced supply of hydrofluoric acid and the high price of raw material fluorite powder, there is a strong expectation of price increase next month; The prices of other raw materials have increased by varying degrees due to the increased support from costs and downstream demand. Since the issuance of HFCs refrigerant quotas, the operating rate of the refrigerant industry has been relatively low, and production is mainly scheduled in an orderly manner based on the annual quotas. The downstream air conditioning industry is currently in a peak season of production and sales. According to industry online data, household air conditioning production was 22.13 million units in March, an increase of 25.2% compared to the same period last year. Among them, domestic production was 12.3 million units, an increase of 17.3% compared to the same period last year. In addition, stimulated by the "Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Exchange," the growth of the home appliance industry in the first half of the year will exceed expectations. Stimulated by the expected increase in downstream demand and continuous increase in costs, it is expected that refrigerant prices will continue to rise at high levels in the future.

Fluorinated polymers: supply exceeds demand, limiting market recovery. Mainstream products remain stable at low levels and remain cautious

This week, the fluoropolymer market continued to face a dilemma of oversupply, with a significant increase in production capacity leading to a decrease in operating rates and price pressures for most products. However, the supply and demand relationship, as the core factor determining prices, has determined that the short-term improvement in the prosperity of the fluoropolymer product market is limited, and low pressure consolidation is the operating status of most products. From the perspective of the industrial chain, the increase in prices of basic raw materials such as fluorite, calcium carbide, chloroform, and liquid chlorine has strengthened the support for monomer raw material products R22 and R142b from the cost side, but has also been weak in boosting the terminal market of TFE series and VDF series fluorinated polymers. In the future, the price trend of fluorinated polymers will continue to consolidate at a low level.

twoWeekly News

oneThe Fujian Huanyang 160000 ton methane chloride and 15000 ton tetrachloroethylene project is about to be put into operation

On February 3, 2024, Fujian Yinfeng Juxing Safety Technology Co., Ltd. released the safety acceptance evaluation report of the 160000 ton/year methane chloride technology renovation project (liquid chlorine packaging) for the comprehensive utilization of high salt wastewater by Fujian Huanyang New Materials Co., Ltd. (hereinafter referred to as the "Project"). The total investment for this renovation and expansion project is 355.19 million yuan, with the construction of an annual production capacity of 160000 tons of methane chloride equipment, an annual production capacity of 15000 tons of tetrachloroethylene equipment, and a 10t/h liquid chlorine packaging (methane chloride equipment packaging liquid chlorine steel cylinders under abnormal working conditions).

twoConstruction of Hubei Trifluoro 5000t/a Fluorine Firefighting Agent and Electronic Materials Project

The first phase of the annual production of 5000 tons of new fluorinated fire extinguishing agents and electronic new materials project by Hubei Sanfluorine New Materials Co., Ltd. was publicly announced for environmental impact assessment on January 9th, and the project officially started construction on January 25th. The total planned investment for the project is 120 million yuan, with a planned total construction area of approximately 20000 square meters. The annual production capacity is 5000 tons of electronic coolant, 4000 tons of new environmentally friendly fire extinguishing agents, and 1000 tons of electronic cleaning agent production lines. After the project is completed and put into operation, it is expected to achieve an annual output value of 2 billion yuan. Among them, the first phase of the project plans to build an industrial grade sodium chloride production line with an annual output of 5000 tons of fluorinated fire extinguishing agents, dimers, trimers, lithium battery fire inhibitors, electronic cooling liquids, cleaning agents, and 560 tons of by-products.

threeThe annual production of 1.2 million tons of fluorite mining and selection project is underway in Ruoqiang, Xinjiang

On July 30, 2023, the concentrated commencement ceremony of major projects in the third quarter of Xinjiang Autonomous Region was held. Fang Jun, Vice Chairman of Xinjiang Huaou Mining Co., Ltd., stated that he will rely on the rich fluorite resources in Ruoqiang to construct the Kalqar 1.2 million ton/year fluorite mining and selection project, with a total investment of 1.6 billion yuan. After completion, the annual output value will be around 900 million yuan. On March 15, 2024, Huaou Mining successfully obtained the commencement permit for the Karqal fluorite mining and selection project. It is estimated that the production capacity of 1.2 million tons/year of ore mining output and 4000 tons/day of mineral processing will be formed in 2025. On the morning of March 16th, the Karqal fluorite mining and selection project officially began construction.

fourZhejiang Jusheng plans to expand production of 500t/a perfluorosulfonic acid resin in stages

On December 14, 2023, the Zhizao New City Branch of Quzhou Ecological Environment Bureau issued approval opinions on the environmental impact assessment report of Zhejiang Jusheng Fluorochemical Co., Ltd.'s newly added 500t/a perfluorosulfonic acid resin project and announced it. On March 13, 2024, it was announced on the investor interaction platform that the company currently has a production capacity of 30 tons/year of perfluorosulfonic acid resin and has decided to implement the first phase of the 500 tons/year perfluorosulfonic acid resin project with a capacity of 250 tons/year. Perfluorosulfonic acid resin is mainly used for processing proton exchange membranes and ion exchange membranes.

fiveThe completion of Hebi Xin and 2000t/a fluorinated fine chemical project is imminent

In December 2020, the Development and Reform Commission of Heshan District, Hebi City agreed to carry out preliminary work for the annual production of 10000 tons of pharmaceutical intermediates and 2000 tons of high-end fine chemicals containing fluorine by Hebi Xinhe Chemical Co., Ltd. The total investment of this project is 75 million yuan. It started construction in June 2021 and is planned to be completed in June 2023. After completion, it can produce 10000 tons of nucleoside antiviral grade anti-tumor pharmaceutical intermediates and 2000 tons of high-end fluorine-containing fine chemicals, with an annual output value of up to 700 million yuan.