HFC refrigerant prices remain firm during operation, fluoropolymer low pressure consolidation

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One week market
Refrigerant: Strong cost support combined with strong demand supports high prices
This week, the cost support for refrigerants is strong and demand is strong, with mainstream HFCs refrigerants operating at firm prices. Weekly market characteristics: Hydrofluoric acid is expected to increase in pricing next month due to reduced supply and increased cost pressure, with an expected increase of over 600 yuan/ton; The overall production and sales of other raw materials are still acceptable, and prices are stable with a slight increase. Affected by HFC quota management, limited quotas within the year have led to generally low factory operating rates, resulting in tight supply in the industry, and downstream air conditioning plants have entered a peak season of production and sales, with a steady increase in demand for refrigerants. According to industry online data, the production of household air conditioners in April was 22.19 million units, an increase of 22.7% compared to the same period last year. Domestic and export sales increased by 20.9% and 28.3% year-on-year, respectively. Overall, the tight supply side and continuous growth in demand side of refrigerants will continue to support the strong upward trend of refrigerants in the future market.

Fluorinated polymers: supply and demand contradictions vary greatly among different products, industry reshuffle and demand recovery coexist
This week, the fluoropolymer market continued to have prominent supply-demand contradictions, increased cost support, and slow demand recovery. The significant expansion of production capacity of most products has led to a serious problem of decreased operating rates and fierce price competition. Due to the supply and demand relationship being the core factor determining prices, the short-term negative impact of overcapacity on the market is limited. Therefore, the operating status of mainstream fluoropolymer products under low pressure consolidation will continue to exist for a long time. 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 had little impact on the terminal market shipping prices of TFE and VDF series fluoropolymers. The future price fluctuations of fluoropolymers will also depend on the speed of industry reshuffle and the recovery speed of downstream application industries.

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Weekly News
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Jiangsu Jiujiu Technology plans to produce 35000 tons of lithium hexafluorophosphate and other projects annually
On March 28th, the Administrative Approval Bureau of Nantong City accepted the environmental impact report of the expansion project of Jiangsu Jiujiujiu Technology Co., Ltd. with an annual production of 35000 tons of lithium hexafluorophosphate, 10000 tons of sodium hexafluorophosphate, 162926.4 tons of by-product hydrochloric acid (HCl ≥ 31%), 98379 tons of by-product hydrofluoric acid (HF ≥ 30%), and 630.8 tons of by-product calcium fluoride, and made it public.
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Guohong Fluorochemical plans to produce 2500 tons of heptafluoropropane and 1000 tons of heptafluorobromopropane annually
On March 28th, the Ecological Environment Bureau of Changde City accepted and publicized the production projects of 2500 tons of heptafluoropropane and 1000 tons of heptafluorobromopropane annually by Hunan Guohong Fluorochemical Co., Ltd. After the completion of the project, the entire factory will produce 500t/a of difluoromethane, 2500t/a of heptafluoropropane, 1000t/a of heptafluorobromopropane, and 2800t/a of by-product hydrochloric acid. It belongs to the organic chemical raw material manufacturing industry.
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Funolin plans to build 5000 tons of polytetrafluoroethylene and 5000 tons of fluororubber projects
On March 26, 2024, it was learned from the official website of Zhejiang Funolin Chemical New Materials Co., Ltd. that the company plans to build a high-performance polytetrafluoroethylene resin innovation achievement transformation and industrialization project, with an expected annual production capacity of 6000 tons of tetrafluoroethylene (TFE) and 120 tons of hexafluoropropylene (HFP) as intermediate products (not for sale), 2000 tons of fusible polytetrafluoroethylene (PFA) and 3000 tons of ultra-high molecular weight polytetrafluoroethylene (PTFE) (1500 tons of ultra-high molecular weight suspended polytetrafluoroethylene, 1500 tons of ultra-high molecular weight dispersed polytetrafluoroethylene), as well as 34500 tons of by-product hydrochloric acid. At the same time, the company plans to utilize the existing proposed factory building to purchase production equipment such as polymerization kettles, to form an annual production capacity of 2000 tons of F26 fluororubber, 2000 tons of F246 fluororubber, and 1000 tons of perfluoroether rubber.

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1000 tons of hexafluoroepoxypropane (HFPO) from Shandong Zhongrou have been put into production
On March 27, 2024, Qilu Yidian reported that Shandong Zhongrou New Materials Co., Ltd. has put 1000 tons of hexafluoroepoxy propane into production. In the industrial park, 726 sets (sets) of equipment such as polymerization reactors, compressors, high and low temperature integrated machines, hollow fiber membrane spinning machines, rectification towers, double cone dryers, gel permeation chromatographs, broadband dielectric impedance analyzers have been newly added. It is reported that the main steel structure of the workshop in Phase II of the project is also partially under construction. Cui Huailei, Deputy General Manager of Shandong Zhongrou New Materials Co., Ltd., said: Currently, the domestic market demand for fluorinated polyimide (CPI) is 3000 tons/year, with a market growth rate of over 50%, and the prospects are broad.
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Juhua Group's Reply to Liquid Cooling Track Layout and Outlook
On March 27th, Juhua Co., Ltd. conducted an investor Q&A on a public platform, stating that its subsidiary Zhejiang Chuangfu High tech New Materials Co., Ltd. has a planned annual production capacity of 5000 tons for its Juxin coolant project, and the first phase of the project will be completed in 2022 with an annual production capacity of 1000 tons. The project products are perfluoropolyether new materials, mainly including JHT electronic fluid series, JHLO lubricating oil series, and JX immersion coolant products. At present, JX immersion coolant products are still in the stage of commercial promotion.
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Jinshi Resource Plan: The production scale of fluorite will reach 1.5 million tons by 2025
On January 16, 2024, Jinshi Resources released the "Announcement on External Investment of Jinshi Resources Group Co., Ltd.", intending to acquire 67% equity in mining rights and other assets under the name of Minglida Company in Mongolia for 134 million yuan, and invest in subsequent project construction to develop this project and adjacent fluorite resources. It is expected that by 2024, the project will be able to produce approximately 150000 tons of high-grade ore primary beneficiation products. At the same time, the company will simultaneously produce and renovate this project, expanding adjacent resources, in order to gradually achieve an annual production of 200000 to 300000 tons of high-grade fluorite block ore and acid grade fluorite fine powder within 1-2 years, and strive to achieve the goal of producing 500000 tons of fluorite products annually within 3-5 years.
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The multi fluoro high purity wet electronic chemical project has been delayed for one year in production
On March 28, 2024, Duofuduo New Materials Co., Ltd. issued a notice on the extension of some of the raised funds for investment projects. The announcement states that the company's annual production of 30000 tons of ultra clean and high-purity electronic grade hydrofluoric acid project and 30000 tons of ultra clean and high-purity wet electronic chemical project were originally expected to reach the predetermined usable state on April 30, 2024. However, without any changes in the implementation subject, implementation method, purpose of the fundraising project, and investment scale, the time when the project reaches the predetermined usable state will be adjusted. It is expected that the date when the above-mentioned projects reach the predetermined usable state will be postponed to April 30, 2025.