IOL Fluorochemical Weekly Report: The air conditioning industry is in the peak production season, and the prosperity of the refrigerant industry continues to rise

One week market
Refrigerant: The air conditioning industry is in the peak season of production, and the industry's prosperity continues to rise
This week, the downstream air conditioning industry is in the peak production season, supporting the continued high operation of refrigerant prices. Market characteristics of the week: trichloroethylene market is mainly supported by strong demand, with narrow price increases; The remaining raw material products are mainly affected by poor overall downstream trading, with narrow price fluctuations. At present, the impact of raw material price fluctuations on the refrigerant market is limited. Since entering the second quarter, the downstream air conditioning industry has been in the peak production season, with overall demand increasing and mainstream refrigerant factories operating at 80-90% of their capacity. From a product perspective, there has not been a significant increase in the current after-sales demand for R22, and it is expected that the hot weather in May and June will drive the purchase of essential goods; R32 benefits from the growth of household air conditioning production and strong overseas demand, and the tight supply and high price situation during peak season will continue; The demand for R134a automotive after-sales service is stable, and there are still growth expectations in the future market; R410A's internal and external sales demand is still acceptable, but the tight supply of R32 supports its continued high-level consolidation. Overall, downstream demand for mainstream refrigerant products is strong, and there is a strong bullish sentiment in the future. With the rise in temperature and the release of demand during peak seasons, prices of various products are expected to reach new highs.

Fluorinated Polymers: Low Price Fluctuations, Steady Growth in Market Size Accompanied by Capacity Release
This week, the fluoropolymer market continued its supply-demand game, with mainstream product prices mainly fluctuating at low levels to maintain stability. On the cost side, the increase in basic raw material prices has driven the strengthening of cost support for individual products R22 and R142B, but has been affected by weak demand from downstream application industries. In recent years, manufacturers of TFE and VDF series products have been continuously extending upstream and downstream of the industrial chain, strengthening cost control by filling in gaps. In addition, differentiated layout is also a routine operation to cope with homogeneous competition. From the annual reports of listed companies such as Dongyue Group, Liwen Chemical, Xinzhoubang, and Tianci Materials, it can be felt that the industry dilemma of "increasing quantity and decreasing price" is difficult to change in the short term. According to the exemption list released by the United States, although more than 10 fluorine chemical products such as fluorite, hydrofluoric acid, PTFE, and other fluorine-containing polymers are exempted, raw material products related to polymers may be affected. The trade friction between China and the United States will continue to affect the production and trade of fluoropolymers, which may in turn affect the downstream industrial structure. The specific impact will depend on the actual degree of impact on a month on month basis.

This Week

01Sanmei Corporation's net profit for the first quarter of 2025 is expected to increase by 139% to 178%

On the evening of April 11th, the performance forecast for the first quarter of 2025 for Sanmei Corporation showed that the company expects to achieve a net profit attributable to shareholders of 369 million yuan to 428 million yuan in the first quarter of 2025, an increase of 215 million yuan to 274 million yuan compared to the same period last year, a year-on-year increase of 139.41% to 177.71%; It is expected that the non net profit attributable to the parent company will reach 365 million to 424 million yuan in the first quarter of 2025, an increase of 210 million to 269 million yuan compared to the same period last year, a year-on-year increase of 136.29% to 174.58%. According to the performance forecast, in 2025, the production quota for second-generation fluorine refrigerants (HCFCs) will be further reduced, and the production quota management for third-generation fluorine refrigerants (HFCs) will continue to be implemented. The supply and demand pattern will be further optimized, downstream demand will increase, and market prices will continue to rise. In the first quarter, the average price of fluorine refrigerant products of Sanmei Group will achieve a significant year-on-year increase, and its profitability will steadily improve.

02Environmental Impact Assessment Announcement of a Fluorite Mine Project in Chongyi, Jiangxi Province, with a Mining Scale of 120000 tons per year
On April 15th, the People's Government of Chongyi County announced that the environmental impact assessment of the Hengkeng fluorite mine project of Chongyi County Hexuan Mining Co., Ltd. was publicly disclosed before approval. The total fixed asset investment of the project is about 127.84 million yuan, with a mining scale of 120000 tons/year and a beneficiation scale of 120000 tons/year. This mine is estimated to have a CaF2 volume of 969000 tons and an average grade of 38.16%.

03Hubei Fluorosilicon Yicheng Company Fluorine Resource Comprehensive Utilization Project Pre Approval Publicity
On April 17th, the planning and design scheme for the comprehensive utilization of phosphorus fertilizer by-product fluorine resources and industrial chain extension project of Hubei Fluorosilicon Yicheng New Materials Co., Ltd. was publicly announced before approval. The project plans to invest 500 million yuan, mainly constructing a 20000 ton/year electronic grade hydrofluoric acid (EL grade) production plant, a 30000 ton/year anhydrous aluminum fluoride supporting cryolite production plant, an electronic grade hydrofluoric acid packaging plant, and supporting raw material product tank area, comprehensive warehouse, sewage treatment station, and supporting public auxiliary engineering. It is expected to be put into operation in December 2025.

04Hubei Hongyuan Pharmaceutical's 6000 tons/year high-purity crystalline lithium hexafluorophosphate renovation and expansion project has been approved
On April 16th, the Ecology and Environment Bureau of Huanggang City approved the Environmental Impact Assessment Report for the 6000 tons/year high-purity crystalline lithium hexafluorophosphate expansion project of Hubei Hongyuan Pharmaceutical Technology Co., Ltd. and made it public. It is understood that the main construction content of the project is to use new process technology to renovate and expand a new facility with a production capacity of 6000 tons on the basis of the original 2000 ton lithium hexafluorophosphate plant and 6000 ton lithium hexafluorophosphate plant. At the same time, some buildings on the original 6000 ton lithium hexafluorophosphate plot will be renovated.