IOL Fluorochemical Weekly Report: Refrigerant Market Contracts in Volume with Stable Prices, Fluorine-containing Lithium Battery Materials Prices Continue to Rise

Refrigerant: Year-end market demand contracts, product prices remain stable amid cautious observation
This week, the refrigerant market experienced a trend of declining volume and stable prices, influenced by the limited year-end quota surplus and short-term demand contraction. Key market characteristics during the week: Refrigerant manufacturers reduced production loads in the final quarter, leading to decreased demand for raw materials. Upstream fluorite powder, hydrofluoric acid, and other raw materials collectively faced reduced demand, resulting in price pressure and volatility. Products with earlier price hikes saw price corrections, while those previously at low levels further declined and fluctuated. Meanwhile, in the off-season market, refrigerant factories and domestic/foreign trade clients primarily focused on essential demand, with minimal stockpiling. In a high-market environment, long-term contracts and short-term essential purchases coexisted. The air conditioning industry's production and sales continued to contract at year-end, reducing demand for R32, R410A, and R125. Under the supply-demand dynamics, the cross-year market trend had the potential to sustain high levels.

Fluoropolymer: Mainstream Products Face Weak Supply-Demand Pressure, Maintaining Stability with Limited Recovery Potential
This week, the mainstream products in the fluoropolymer market operated weakly stable. The supply-demand balance for key fluorinated lithium battery materials, such as lithium hexafluorophosphate and electrolytes, remained tight, driving continuous price increases. On the supply side, end-of-year maintenance shutdowns at major facilities like Juhua, Chenguang, and L&W alleviated supply-demand imbalances. Upstream raw material costs remained persistently low, with occasional price corrections having minimal impact on downstream product costs. On the demand side, rapid growth in sectors like semiconductors, new energy, electronic information, and high-end manufacturing continues to drive the primary expansion markets for fluorine-based materials.  By product type, the supply-demand dynamics shaped the organic fluorine monomers TFE, HFP, and VDF, with abundant supply keeping prices near cost levels. Major producers maintained high self-sufficiency rates, while external procurement accounted for a low proportion. PTFE faced dual challenges of insufficient capacity utilization and reliance on imported premium products. FEP benefited from strong growth in emerging applications. Meanwhile, PVDF and fluororubber faced intensified market competition due to expanded production capacity, alongside shifts in alternative materials and application scenarios. Short-term, established large-scale products will continue to operate primarily in a weakly stable manner.

Weekly Highlights

01The 2026 HCFCs and HFCs Quota Plan is officially released
On October 24, the Ministry of Ecology and Environment officially issued the "2026 Ozone-Depleting Substances Quota Allocation Plan" and the "2026 Hydrofluorocarbons Quota Allocation Plan." The 2026 production quota for HCFC-22 is set at 146,068 tons, a reduction of 3,000 tons compared to 2025, with an internal market cut of 2,910 tons. The production quota for HCFC-141b will be fully phased out in 2026, decreasing by 9,157 tons from 2025, while quotas for other HCFC species remain unchanged from 2025 levels. Based on the replacement demand for HCFC phase-out, the 2026 allocation includes an additional 3,000-ton production quota for HFC-245fa, with 3,000 tons designated for domestic use. To meet the needs of the semiconductor industry, an additional 50-ton production quota for HFC-41 was issued, with 50 tons for domestic use. Both the 2026 and 2025 additional quotas are annual quotas and are valid only for the 2026 calendar year.

02Announcement on the 3,000-ton Fluorine-containing Coolant Project of Jianyang Jinshi Fluorine Industry
On October 21, the Nanchang Municipal Ecological Environment Bureau accepted and publicly disclosed the Environmental Impact Assessment Report for the Electronic Coolant Construction Project of Fujian Jianyang Jinshi Fluorine Industry Co., Ltd. The project is located in the Fine Chemical Industrial Park of Huiaoyao Village, Tan Cheng Street, Jianyang District, Nanchang City, with a total investment of 210 million yuan. It plans to add two production workshops and a pilot test workshop, achieving an annual production capacity of 1,000 tons of perfluorotrispropylamine, 1,000 tons of perfluorotrisbutylamine, and 1,000 tons of trifluoromethyl sulfonic acid.

03Zibo Feiyuan's 4,000-ton ethyl trifluoroacetate project is expected to commence production by the end of the year
Recently, the 4,000-ton/year ethyl trifluoroacetate project at Shandong Feiyuan Special Materials Co., Ltd. in Gaoqing County is under active construction. The project is expected to complete civil construction by the end of October and commence production by the end of December. Upon completion, the production of ethyl trifluoroacetate alone will absorb half of the output capacity of the upstream trifluoroacetic acid project. The concurrently advancing 30,000-ton/year magnesium sulfate facility will further utilize over 10,000 tons of surplus sulfuric acid from the upstream sulfuric acid project, effectively transforming potentially idle resources into valuable outputs.

04WEIFANG XINYUAN'S 10,000+ TON EXPANSION PROJECT FOR HIGH-END FLUORINE-CONTAINING FINISHED CHEMICALS PUBLISHED FOR PUBLIC REVIEW
Recently, the Weihai Municipal Bureau of Ecology and Environment issued an announcement regarding the expansion project for high-end fluorine-containing fine chemicals by Weihai Xinyuan New Materials Co., Ltd. Upon completion, the project will have an annual production capacity of 8,000 tons of tetrachloropropane, 4,000 tons of trifluoropropene, 3,600 tons of trichlorofluoroethane, 360 tons of trifluoroethylamine, 2,500 tons of trifluoroethanol, and 500 tons of trifluoroethylamine hydrochloride. Additionally, it will produce 780 tons per year of 40% hydrofluoric acid, 31,300 tons per year of 31% hydrochloric acid, 2,200 tons per year of potassium sulfate, and 2,300 tons per year of ammonium sulfate.