IOL Fluorochemical Weekly Report: Quota depletion combined with some factories shutting down at the end of the year, refrigerant continues to operate at a high level

One week market
Refrigerant: quota depletion combined with partial factory shutdowns at the end of the year, market continues to operate at a high level
This week, the refrigerant market quota has been exhausted, and the market continues to operate at a high level. Market characteristics of the week: With the northern region entering winter, the supply of upstream basic raw material fluorite powder continues to be tight, the production and sales of hydrofluoric acid remain stable, and prices remain stable; The prices of other raw material products have fluctuated slightly, while the cost of refrigerants has not fluctuated much. From a product perspective, the quota for R22 has been exhausted, and most factories have suspended accepting new orders. Some factories that have accepted orders have offered firm prices; The mainstream HFC refrigerant factories have limited quota surplus and a year-end maintenance plan, resulting in overall tight supply. Currently, the main focus is on delivering long-term orders. Due to high refrigerant prices and a strong wait-and-see atmosphere in the retail market, overall production and sales are weak. As the end of the year approaches, due to the impact of export licenses and longer shipping schedules, refrigerant foreign trade orders are unable to be delivered in time and are generally stagnant. It is expected that the market will maintain a tight supply situation in the short term, with factories being reluctant to sell and controlling orders, and refrigerant prices continuing to operate at high levels in the future.

Fluorinated polymers: Excess production capacity to be digested and will continue to run at a slower pace
This week, the fluoropolymer market continued to have loose supply and weak demand, with prices remaining stagnant at low levels. From the perspective of the industrial chain, the high prices of upstream basic raw materials such as fluorite powder and hydrofluoric acid directly lead to an increase in the cost of downstream high-end fluorine chemical products due to the rising cost of fluorine resources. However, the supply growth rate is faster than the demand growth rate, resulting in an increase in the quantity and price of fluorine material products, and the market has been sluggish for a long time. From the demand side, fluorinated polymers, as high-performance materials, are mainly used in industries such as national defense and military, aerospace, semiconductor, electronics and electrical, automotive, and chemical. Only when these application fields recover globally can the supply-demand relationship be truly improved. Therefore, in the future, fluorinated polymers, like other products, will have excess production capacity to be digested and will continue to operate at a low capacity.

Weekly news
01
Environmental Impact Assessment Announcement of Fluorine Resource Project as a By Product of Phosphate Fertilizer by the Joint Venture between Duofuduo and Hubei Yihua
On November 18th, the environmental impact assessment of the comprehensive utilization of fluorine resources as a by-product of phosphate fertilizer and the extension of the industrial chain project of Hubei Fluorosilicon Yicheng New Materials Co., Ltd. was publicly announced for the first time. The project is located in Zone B of Yaojiagang Chemical Industrial Park, High tech Zone, Yichang City, Hubei Province. It mainly constructs one 20000 ton electronic grade hydrofluoric acid production unit and one 30000 ton anhydrous aluminum fluoride supporting cryolite production unit. After completion, it will produce 20000 tons of electronic grade hydrofluoric acid, 30000 tons of anhydrous aluminum fluoride, and 687 tons of high-purity cryolite annually. This project utilizes the by-product of wet process phosphoric acid, fluorosilicic acid, to produce anhydrous hydrogen fluoride. Following the cooperation model of chain extension and industry coupling, it focuses on developing the entire downstream industry chain of fluorosilicon materials and electronic chemicals, further enhancing the company's market competitiveness in related industries.
02
Jinshi Resources: Plan to achieve a fluorite production capacity target of 1.5 million tons by 2026
Recently, Jinshi Resources announced in an investor relations event that in March 2021, the company had set a production capacity target of gradually reaching 1.5 million tons within 5 years, which includes the Baosteel Jinshi beneficiation project. At present, the Baosteel project has a production capacity of 700000 to 800000 tons, with a single mine producing 400000 to 500000 tons. Combined with the Mongolia project, overall, this goal should be achievable. The current progress of the Mongolia project is that the pre-treatment project construction has been basically completed, and the mining stripping work is also underway. The overall construction and progress are in line with expectations.

03
Environmental Impact Assessment of the Production and Construction Project of Jianyang Jinshi Fluorine containing Series Products
On November 15th, the Ecology and Environment Bureau of Nanping City accepted and publicized the environmental impact assessment of the production and construction project of fluorine containing series products of Fujian Jianyang Jinshi Fluorine Industry Co., Ltd. The project was put into construction in March 2022, with the main products including 50% electronic grade hydrofluoric acid 50000t/a, high-purity ammonium hydrogen fluoride (relocation product) 10000t/a, hexafluorobutadiene 200t/a, hydrogen fluoride (relocation product) 30000t/a, perfluorobutyl sulfonyl fluoride 378t/a, perfluorobutyl sulfonate potassium 200t/a, hydrogen pyridine fluoride 6000t/a, and fluorine nitrogen mixture (calculated as fluorine) 400t/a; The by-products include 219150t/a hydrochloric acid (industrial hydrofluoric acid), 6477t/a 40% fluorosilicic acid, 128580t/a fluorogypsum, 239t/a zinc chloride, and 10000t/a high-purity ammonium fluoride.
04
Kechuang (Quzhou) expands production of 500 tons of FEVE fluorocarbon coatings
On November 13th, the Intelligent Manufacturing New City Branch of Quzhou Ecological Environment Bureau accepted the environmental impact assessment permit application materials for the annual production of 500 tons of fluorocarbon coatings project of Kechuang (Quzhou) Chemical Technology Development Co., Ltd. According to the environmental impact assessment public draft, Kechuang (Quzhou) Chemical plans to invest 5 million yuan, using the company's existing product FEVE ester resin as the main raw material, and titanium dioxide, talcum powder, butyl acetate and other products as auxiliary raw materials. The existing land in the factory area will be used to construct the "Annual Production of 500 Tons of Fluorocarbon Coatings Project", forming a production capacity of 500 tons of fluorocarbon coatings per year.