IOL Fluorochemical Weekly Report: Mainstream refrigerant production and sales are booming, fluorinated polymers continue to be under pressure

One week market
Refrigerant: uneven production and sales of different products, the game between upstream and downstream continuing demand and cost pressure
This week, the refrigerant market continued to experience uneven distribution of heat and cold. Currently, mainstream application products R32 and R134a have strong production and sales. However, due to the impact of environmentally friendly refrigerant substitution, products such as R125 and R143A used for mixing R410A, R404A, and R507 have a significantly weak market trend, with clear price feedback. Characteristics of the weekly market: The supply of upstream basic raw materials such as fluorite powder, hydrofluoric acid, methane chloride, TCE, etc. is loose, and prices are under pressure and fluctuate at low levels, with little fluctuation. The refrigerant factories on the supply side also produce unevenly hot and cold products. Popular products such as R32 and R134a are mostly produced at full capacity in the factories, but are replaced by other products. The factories may reduce their load or experience shutdowns. The demand side core application area of the air conditioning industry continues to grow domestically, but the export market has declined significantly; The automotive industry is showing a structural growth of "new energy replacing fuel vehicles", with high export prosperity, but overall growth rate is not high; In addition, the real estate industry is weak, air conditioning inventory is rising, and negative impacts such as supply chain cost pressure are looming. In the later stage, the upstream refrigerant and downstream application industries will continue to play the game of rigid demand and cost pressure.

Fluorinated polymers: Continuing the dismal trend of low-end excess and slightly better high-end performance
This week, the fluorine-containing polymer market continued its trend of low-end oversupply and high-end performance. In recent years, there has been a significant expansion in the production of general materials on the supply side, exacerbating the supply-demand imbalance and hindering the industry's production due to poor shipments. The cost side is experiencing a cycle of "weak production and sales → relatively reduced factory production → reduced raw material demand → oversupply of raw materials → falling raw material prices → weakened cost support → declining product prices". The decline in core raw material prices has led to a downward shift in the cost center of downstream products. On the demand side, traditional engineering and construction, machinery manufacturing, petrochemicals, aerospace, coatings, etc. either continue to be weak or have low growth rates. Although new application areas such as new energy, semiconductors, high-end manufacturing, environmental protection, medical and other new sub sectors have high demand growth, they are limited by higher supply growth rates. In summary, although the policy of domestic substitution has positive support for the industry, the supply-demand relationship and cost side negative factors dominate. The short-term fluorine material market will continue to operate under pressure from general material prices, while high-end sub sectors such as new energy, semiconductors, high-end manufacturing, environmental protection, and medical care will continue to A slightly better market pattern for the product.

This Week

01Tiansheng Mining in Wuping County, Longyan, is expected to produce 50000 tons of fluorite ore by 2025
Recently, Wang Zhanqiao, General Manager of Tiansheng Mining Investment Group Co., Ltd. in Wuping County, stated in an interview that from January to May 2025, the company will produce 10600 tons of raw ore, a year-on-year increase of 205%, and 2200 tons of fluorite powder, a year-on-year increase of 198%. It is expected that by 2025, the company will be able to produce 50000 tons of raw ore and 12000 tons of fluorite powder, with an output value of 42 million yuan. Wuping County is rich in mineral resources, with a current reserve of 657900 tons of fluorite ore and a mineral quantity of 406400 tons. In the future, we hope to continuously reduce costs and increase efficiency through technological innovation and improved production processes, achieving an annual production of 60000 to 80000 tons of refined powder.

02Juhua Corporation answers the essential attributes and business model of HFC products
Zhejiang Juhua Co., Ltd. will hold an investor reception day event on June 13, 2025. During the event, the company stated that currently, Chinese HFCs have implemented a quota system in accordance with the Kigali Amendment to the Montreal Treaty starting from 2024. Based on the quota system of this global agreement, Chinese HFCs have more than 80% of the global HFC quota, and have formed a specific business model of "global supply side structural reform results (one-time elimination of excess capacity, supply restricted by quotas)+global franchise rights (quota permits)+high quota concentration (global quotas concentrated in China, Chinese quotas concentrated in industry-leading enterprises)".

03India launches second anti-dumping sunset review investigation into Chinese fluororubber
According to the China Trade Remedy Information Network, on June 16, 2025, the Indian Ministry of Commerce and Industry announced that it would initiate a second anti-dumping sunset review investigation on Fluoroelastomers (FKM) originating or imported from China, in response to an application submitted by Indian domestic enterprise Gujarat Fluorochemicals Limited. The case involves products under Indian customs codes 39045090, 39046990, 39049000, and 39046910. The dumping investigation period is from January 1, 2024 to December 31, 2024, and the injury investigation period is from 2021 to 2022, 2022 to 2023, 2023 to 2024, and January 1, 2024 to December 31, 2024.

04Multiple key projects, including the annual production of 8660 tons of high-end fluorine-containing new materials, have landed in Zigong
On the afternoon of June 18th, Zigong City held a signing event for key projects such as fluorosilicon new materials for the second quarter of 2025, with 5 projects signed on-site. This signing event involves projects such as high-end fluorine-containing new materials, green liquid biomass fuels, and degradable resins. Among them, the largest investment is undoubtedly in the Hangzhou Yunshang New Materials Bio based and Electronic New Materials project. The total planned investment for this project is 1 billion yuan, covering an area of 200 acres. The main construction includes the annual production of 10000 tons of furan dicarboxylic acid biobased materials and 8660 tons of high-end fluorine-containing new materials、An annual production line for 6400 tons of electronic new materials.