IOL Weekly Report: Air conditioning continues to maintain high ambient temperature, refrigerant prices remain stable at high levels

one
One week market
Refrigerant: The air conditioning market continues to maintain high humidity, and refrigerant prices remain stable at high levels
This week, the downstream air conditioning industry continued to maintain high levels of vitality, supporting high refrigerant prices. Market characteristics of the week: raw material prices fluctuate, liquid chlorine prices are exploring an upward trend, hydrofluoric acid is limited by downstream demand, and the price decline next month is between 200-300 yuan/ton. The prices of other raw material products are mainly fluctuating at high levels, and the cost support for refrigerant products is stable. Due to the peak season of production and sales for air conditioning plants from May to August, and the year-on-year increase in production scale of each air conditioning plant in recent months being around 20%, R32, as the mainstream refrigerant product in the new air conditioning market, has increased demand, leading to tight supply in the industry and continued high prices; In addition, as temperatures rise in various regions, the growing demand in the after-sales market has led to a shortage of R22 supply, and there are still expectations of further price increases in the future; The supply and demand market for other refrigerant products is relatively stable, and prices remain high. Overall, influenced by the different production and sales situations of downstream application industries, the differentiation characteristics of various refrigerant products are obvious. In the peak season market, multiple factors such as tight supply, strong costs, and strong demand will support the stable and rising operation of the future market.

Fluorinated polymers: limited improvement in supply and demand, narrow range fluctuations in product prices
This week, the upstream basic raw materials in the fluoropolymer market fluctuated, with overall cost support still in place; The main organic fluorine monomers in the midstream face dual pressures from upstream and downstream, and continue to maintain stability under low pressure; Downstream common fluoropolymers are facing a reshuffle dilemma of rapid production capacity growth, with supply and demand shifting towards the buyer's market. Terminal on-demand procurement determines that product prices will remain dismal and stable at low levels. At present, there is inventory pressure in fluoropolymer factories, and the operating load of the equipment has been reduced compared to the previous month. The large supply base and limited short-term improvement in demand have determined that TFE series and VDF series products are in a dilemma of rising and falling, and will continue to maintain a bottom.    

two
Weekly News
one
Approval of R-22 production quota adjustment for two subsidiaries of Juhua
On May 21st, the Ministry of Ecology and Environment issued a reply approving the adjustment of production quotas for hydrochlorofluorocarbons in 2024 by Zhejiang Lanxi Juhua Fluorochemical Co., Ltd. and Zhejiang Quhua Fluorochemical Co., Ltd. It is reported that Zhejiang Lanxi Juhua Fluorochemistry Co., Ltd. and Zhejiang Quhua Fluorochemistry Co., Ltd. are both wholly-owned subsidiaries of Juhua Group. After this adjustment, Lanxi Juhua Fluorochemistry will increase its production quota of 8000 tons of R22 and 9717 tons of R22 for domestic use. Quhua Fluorochemistry's quota will correspondingly decrease, while Juhua's overall R22 quota will remain unchanged.
two
From January to April, the calcium fluoride content was ≤ 97%, and the import of fluorite increased by 72% year-on-year
According to customs data, in April 2024, China imported 91443.45 tons of fluorite with a calcium fluoride content of ≤ 97% by weight, a month on month increase of+13.42%; The average import price is 143.50 US dollars per ton, which is -6.30% month on month. China imported 2316.51 tons of fluorite with a calcium fluoride content greater than 97% by weight, a month on month increase of 196.99%. The average import price was 331.91 US dollars per ton, a month on month decrease of -33.07%. From January to April 2024, China imported 355770.59 tons of fluorite with a calcium fluoride content of ≤ 97% by weight, a year-on-year increase of 72.46%; The average import price is 139.82 US dollars/ton, with a month on month ratio of -3.50%. From January to April, China imported a total of 5625.29 tons of fluorite with a calcium fluoride content greater than 97% by weight, compared to only 11.37 tons in the same period of 2023; The average import price is 427.37 US dollars per ton.
three
Hubei Funolin plans to add 9000 tons of semiconductor PVDF for technological transformation
On May 28th, the Ecological Environment Bureau of Qianjiang City announced that Hubei Funolin New Materials Co., Ltd. plans to implement technological transformation in order to expand its product application scope (by adding fluoroplastic raw material particles). The first environmental impact assessment announcement of this project was released on March 26th. The project is called the Polyvinylidene Fluoride Polymer Technical Renovation Project (for semiconductor use), with a planned investment of 80 million yuan to form two polyvinylidene fluoride polymer production lines, a by-product hydrochloric acid refining production line, and a polyvinylidene fluoride particle production line. After reaching production capacity, the annual production of 25000 tons of vinylidene fluoride polymer includes 9000 tons of polyvinylidene fluoride particles. After the technical renovation is completed, the production capacity of the main product, vinylidene fluoride polymer, remains unchanged.
four
Kyushu New Materials Construction 4200 ton Fluorine Lithium Salt Project
On April 8th, the Zhizao New City Branch of the Quzhou Ecological Environment Bureau issued an environmental impact assessment approval decision for the 2000t/a lithium trifluoromethylsulfonamide and other metal salts, 200t/a lithium trifluoromethylsulfonamide and other metal salts, and 2000t/a lithium trifluoromethylsulfonamide projects of Quzhou Jiuzhou New Materials Co., Ltd. The total investment of this project is 330 million yuan, and it is planned to invest in the construction of 2783.72 t/a bis (trifluoromethyl) sulfonamide solution (70%) as an intermediate product (which can also be directly sold or used as a raw material to produce metal salts); 200t/a flexible production line for lithium trifluoromethanesulfonate and sodium trifluoromethanesulfonate (or 50% concentration solution products); 2000t/a lithium difluorosulfonate solid production line.