IOL Fluorochemical Weekly Report: End of year quota for refrigerants exhausted, tight supply supports price increase

One week market
Refrigerant: End of year quota exhausted, orders coming to an end, tight supply supporting stable prices, exploring price increases
This week, the quota of refrigerant factories has been exhausted, and the tight supply of goods has supported the high price exploration. Market characteristics of the week: Upstream raw materials such as fluorite powder and hydrofluoric acid have light production and sales, and prices are temporarily 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 will be exhausted within the year, and the tight supply of goods will support prices to remain high; The quota surplus of mainstream HFC refrigerant factories is limited, and each company cautiously accepts orders and schedules production based on the remaining quota. The industry's operating capacity remains low, and mainstream factories such as Juhua, Sinochem, Sanmei, Yonghe, etc. have plans to shut down within the month. The overall market continues to face a tight supply situation. 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, controlling orders, and suspending quotations being common. In the future, refrigerant prices will fluctuate at high levels.

Fluorinated polymers: limited improvement in demand and will continue to be diluted
This week, most products in the fluoropolymer market continued to have a loose supply pattern, with factories accepting orders and scheduling production based on inventory, and the industry generally operating at non full capacity. From the perspective of the industrial chain, the high prices of upstream basic raw materials provide strong cost support for all fluoropolymer products, while organic fluorine intermediate products are caught in a dilemma of ups and downs. The demand growth rate of downstream fluorinated polymer applications is far lower than the supply growth rate. Therefore, under the supply-demand game, the volume increases and prices fall, and the market remains sluggish for a long time. Based on the above prediction, fluoropolymers, as high-performance materials, are mainly applied in industries such as national defense and military, aerospace, semiconductor, electronics and electrical, automotive, and chemical. It will take time for global demand to recover, and the short-term market for fluoropolymers will remain weak and stable.

Weekly news
01
Fujian Sangang subsidiary plans to build a 40000 ton/year R22 plant to layout the TFE industry chain
Recently, the draft environmental impact assessment report for the first phase of Fujian Sangang Fuduobang Fluorine New Materials Industry Construction Project was publicly released for comments. The project plans to invest 1642963200 yuan and is located in the Jinxing area of the Fluorine New Materials Industrial Park in Songxi Town, Qingliu County, Sanming City. The project uses anhydrous hydrogen fluoride as the basic raw material, constructs a 40000 ton/year R22 plant and a 20000 ton/year TFE plant, and downstream constructs a 3000 ton/year FEP plant and a 17000 ton/year PTFE plant. At the same time, 130000 tons/year of polyaluminum chloride will be constructed to consume excess hydrochloric acid in the plant. The construction period is from January 2025 to December 2026 (24 months).
02
Shangrao City adds two new fluorite screening projects
Recently, Shangrao City has added Yingfeng Mining Co., Ltd.'s fluorite screening project and Shicheng Mineral Products Co., Ltd.'s annual production of 10000 tons of high-quality fluorite mineral product screening project. Among them, Shangrao Yingfeng Mining Co., Ltd. plans to invest 5 million yuan to build a project with an annual output of 30000 tons of fluorite ore (specifications of 0.5cm-15cm); Shangrao Shicheng Mineral Products Co., Ltd. plans to invest 50 million yuan to build a project with an annual output of 3000 tons of 0-6mm fluorite ore, 7000 tons of 80-200mm and 200-250mm fluorite ore (CaF2 mass fraction of 95% -97%).
03
Environmental Impact Assessment Announcement for Two Fluorochemical Projects in Sanming, Fujian
Recently, the draft environmental impact assessment report for the first phase of the perfluoropolyether and other fluorine material product technology renovation project of Sanming Haisifu Chemical Co., Ltd. and the Fujian Sansteel Fuduobang fluorine new material industry construction project was publicly released for comments. Among them, Haisifu invested 50 million yuan to plan the construction of 1500t/a perfluoropolyether, 900t/a perfluoroene ether series, 800t/a hydrofluoroether series, and 500t/a fluorosurfactant series. The production process of bisphenol AF series products will be upgraded, and the production capacity will remain unchanged at 100t/a; Cancel the 100t/a perfluoropolyether production line; Fujian Fuduobang plans to construct 40000 tons/year R22, 20000 tons/year TFE, 3000 tons/year FEP, and 17000 tons/year PTFE, with a construction period from January 2025 to December 2026.
04
Heisifu High end Fluorine Fine Chemicals (Phase II) Project Completion Acceptance
On December 3rd, the environmental protection acceptance information for the completion of the high-end fluorine fine chemicals (Phase II) project of Haisifu Chemical Co., Ltd. in Sanming City was announced. The total investment of the project is 350.55 million yuan, including 8 million yuan for environmental protection investment. The scope of this acceptance is: an annual production of 3600t/a of hexafluoropropane and downstream products, a production line of 30000t/a of lithium-ion battery electrolyte, and related auxiliary and environmental protection projects.