IOL Weekly Report: Multiple Factors Supporting HFC Refrigerant Price Exploration and Operation

one
One week market
Refrigerant: Multiple factors such as tight supply, strong costs, and strong demand support price exploration and operation
This week, the refrigerant market continued to operate strongly, with strong downstream demand supporting a high level of price exploration. Market characteristics of the week: raw material prices rise more than fall, while liquid chlorine and sulfuric acid prices have experienced a narrow decline but have already risen to high levels in the early stages. The cost support for refrigerant products is stable. From the perspective of the supply and demand market, the production quotas for HFCs refrigerants have been established within the year, and factories have orderly scheduled production based on the total quota. However, downstream air conditioning plants have strong production and sales, with a year-on-year increase in production scale of over 15% in April and May. In terms of policies, in addition to the "Action Plan for Promoting Large scale Equipment Renewal and Consumer Goods Exchange for New Products" released in March, the Ministry of Commerce, Ministry of Finance and other seven departments jointly issued the "Implementation Rules for Subsidies for Automobile Exchange for New Products" in April, which to some extent stimulated the growth of demand in the corresponding industries. Overall, in the peak season market, multiple factors such as tight supply, strong costs, and strong demand will support the stable and upward trend of the future market.
Fluorinated polymers: market trading is flat, product prices are weak, maintaining stability
This week, the fluoropolymer market has had sluggish trading, with sluggish shipments leading to an increase in inventory, a decrease in factory operating load, and a continuation of weak domestic and foreign demand. Although the rise in upstream basic raw material prices has strengthened the support for downstream product costs, in a weak market pattern, supply and demand are the main determining factors, and mainstream product prices are mainly under low pressure to maintain stability. At present, the upstream monomer raw material products R22 and R142b are operating under pressure and maintaining stability, providing stable cost support for the TFE and VDF series. Under the influence of multiple factors such as sufficient competition, loose supply, price bottoming out, and slow demand recovery, fluoropolymer products are in a dilemma of rising and falling. Different factories have fast changes in shipping prices based on orders and inventory, and the price trend will continue to be weak and stable.

two
Weekly News
one
Hubei Fosi Chuang invests 630 million yuan to construct the lithium difluorosulfonymide LiFSI project
On April 28th, the Ecological Environment Bureau of Yichang City accepted and publicly announced the Environmental Impact Report of Hubei Fosi Innovation Materials Co., Ltd.'s New Agent Battery Electrolyte Core Material Project. The project has an investment of 630 million yuan and plans to build two sets of salt production facilities. The main products include 16500 tons/year of LiFSI-EMC solution, 16500 tons/year of LiFSI-DMC solution, and 100 tons/year of solid LiFSI. The project is expected to start construction in August 2024, lasting 18 months, and will be completed by February 2026.
two
Inner Mongolia Kolaibo Construction of a 16000 ton/year High Performance Fine Fluorine Chemical New Material Project
On May 8th, the Environmental Impact Assessment Report for the High Performance Fine Fluorine Chemical and New Materials Project in Baiyun Ebo Mining Area of Kolaibo (Inner Mongolia) Technology Co., Ltd. was publicly announced before approval. The total investment of the project is 1.2 billion yuan, and it is planned to construct a high-performance fine fluorine chemical new material with an annual output of 16000 tons in the Damao Barun Industrial Park in Baotou, Inner Mongolia Autonomous Region. The main product plans include 3000 tons/year of fluorobenzene, 1857.5 tons/year of para methylfluorobenzene and ortho methylfluorobenzene each, 1000 tons/year of para fluorobenzoyl chloride, 1000 tons/year of ortho fluoromethyl chloride and trifluorobenzidine each, 10000 tons/year of difluorosulfonimide, and 2000 tons/year of polyimide monomer. The project is expected to be completed and put into operation in June 2025.
three
Sanmei Corporation: The company has a hydrogen fluoride (AHF) production capacity of 22100000 tons
Recently, Sanmei Group accepted a survey from institutions such as Shenwan Hongyuan Securities. Regarding the production capacity and profitability of the company's hydrogen fluoride (AHF), Sanmei Group stated that its subsidiary Fujian Dongying AHF expansion project will undergo trial production in November 2023, adding 90000 tons of AHF production capacity. At present, the company has an AHF production capacity of 22100000 tons. The company's main operating data for the first quarter showed a production of 32900 tons of hydrogen fluoride, export sales of 18300 tons, and operating income of 136.5864 million yuan.
four
Jinshi Resources: Changshan Jinshi Yanqian Fluorite Mine Discontinued Production Due to Safety Hazards
On May 7th, the board of directors of Jinshi Resources announced that during an on-site inspection on May 1st, 2024, the Emergency Management Bureau of Changshan County discovered six potential accidents, including insufficient strength of filling materials, in the front fluorite mine of Changshan Jinshi Rock. The on-site handling decision ordered the temporary suspension of production and operation of Changshan Jinshi Rock front fluorite mine and the withdrawal of operators. It is reported that Changshan Jinshi's operating revenue in 2023 was 20.42 million yuan, accounting for 10.57% of the company's operating revenue in 2023; Net profit of 37.32 million yuan, accounting for 10.7% of the company's net profit; The total assets are 4879000 yuan, accounting for 9.73% of the company's total assets; The net assets are 320.74 million yuan, accounting for 19.64% of the company's net assets.