IOL Fluorine Chemical Weekly Report: HFC Hot Products Maintain High Market Performance, Fluoropolymer Products Show Mixed Price Trends

Refrigerant: Air conditioning and automotive production and sales remain stable with growth, while popular products continue to maintain high market performance
This week, the refrigerant market maintained a balanced supply-demand situation, continuing its trend of volume contraction and price increase. Key market characteristics during the week: As the year-end season approached, the refrigerant market entered a production and sales off-season, with mainstream manufacturers operating at low capacity. Prices varied across different factories and products based on production quota availability, with popular refrigerant products seeing their domestic production quotas nearly depleted, leading manufacturers to focus on order control. Upstream raw materials such as fluorite powder, hydrofluoric acid, and methyl chloride faced downward pressure due to shrinking demand, with prices remaining at low levels and further narrow declines expected. On the demand side, while there was a slight rebound in air conditioner production from December, which modestly boosted domestic demand, the repair market and export demand remained relatively weak. Traders were cautious about stockpiling, primarily relying on essential needs. In summary, as the year-end approached, limited quota availability and the off-season in downstream demand markets led to reduced actual transactions. However, the steady growth in production and sales of popular products in downstream automotive and air conditioning markets will continue to support high prices for these products.

Fluoropolymer: Intense Supply-Demand Struggle Amid Expansion Surge, Mainstream Products See Volume Growth and Price Decline
This week, the fluoropolymer market experienced a loose supply, with product prices fluctuating. Weekly market characteristics: The cost base remained stable at the bottom, while there were significant price differences in shipments among factories, with discounts available in actual transactions.  On the supply side, Juhua and L&W completed their maintenance, gradually restoring production capacity. On the cost side, upstream raw materials remained at low prices due to reduced production and sales of downstream products, with weak cost support. On the demand side, demand in traditional applications remained steady, while growth in emerging industries such as semiconductors, new energy, electronic information, and high-end manufacturing was limited.  By product type: Organic fluorine monomers like TFE, HFP, and VDF faced a loose supply, with prices stabilizing around the cost line. Mainstream factories maintained high self-sufficiency rates, while external procurement by companies was minimal. PTFE exhibited a structural contradiction of low utilization rates coexisting with reliance on imported high-end products. FKM supply grew too rapidly, further pressuring prices downward. PVDF showed vast variations across applications, with bidding shipments leading to prolonged weakness in price rebounds, and the phenomenon of increased volume with declining prices persisted.

Weekly news

01Juhua's 100 ton/year HFO-1234yf pilot project has been approved
On November 13th, the Ecological Environment Bureau of Quzhou City approved in principle the Environmental Impact Assessment Report for the T-route Synthesis YF Product Pilot Project of Zhejiang Quhua Fluorochemical Co., Ltd. and made it public. The project is planned to invest 34.3987 million yuan to purchase equipment such as reactors, heat exchangers, distillation towers, pumps, etc. within the existing area of Zhejiang Quhua Fluorochemical Co., Ltd. in Quzhou Intelligent Manufacturing New City High tech Zone. A 100 ton/year HFO-1234yf pilot plant and supporting facilities will be constructed to verify the YF product synthesis process route.

02The completion and acceptance of the Zhonghua Wuhuan Xiangyun Phosphorus Fluorine New Material Project has been successful
On November 11th, the Five Ring Xiangyun Phosphorus Fluoride New Material Project of China National Chemical Corporation successfully passed the completion acceptance. The project uses fluorosilicic acid, a byproduct of wet process phosphoric acid, as the main raw material. The main products include anhydrous hydrogen fluoride, fluorine-containing electronic chemicals, and phosphorus based new materials. It is a nationally encouraged project for the development and utilization of associated fluorine resources. The first phase of the construction project includes 2 × 15000 tons/year anhydrous hydrogen fluoride units, 10000 tons/year electronic grade hydrofluoric acid units, and other units. The second phase of the construction includes 2 × 15000 tons/year anhydrous hydrogen fluoride units, 10000 tons/year electronic grade hydrofluoric acid units, 10000 tons/year lithium difluorosulfonylimide units, 6000 tons/year electronic grade ammonium fluoride units, 50000 tons/year potassium fluoride units, and other products.

03Weihua New Materials plans to acquire 70% equity of Heyutai for 154 million yuan, extending its industrial chain and entering the pesticide market
On November 19th, Zhejiang Weihua New Materials Co., Ltd. announced the acquisition of 70% equity of Jiangsu Heyutai Chemical Co., Ltd. by its controlling subsidiary and the signing of the Equity Transfer Agreement, with a transaction consideration of 153.86 million yuan. Prior to this transaction, Weihua New Materials provided some of the intermediates required for the production of Heyutai, including chlorotoluene and trifluoromethylbenzene series products. These intermediates are key raw materials for Heyutai's production of pesticide active ingredients such as fluazinam and fluazinam. Given the lengthy, costly, and uncertain process of pesticide product registration and certification, Weihua New Materials' direct acquisition of Heyutai can bypass this barrier and significantly save at least 2-3 years of registration time window, thus quickly entering the downstream market and seizing market opportunities.

04Jiangxi Fuli New Energy Annual Production 50000 Tons Lithium Hexafluorophosphate New Energy Project (Phase II) Announcement
Recently, the Ecology and Environment Bureau of Jingdezhen City made an approval decision and announcement on the Environmental Impact Assessment Report of Jiangxi Fuli New Energy Materials Technology Co., Ltd.'s annual production of 50000 tons of lithium hexafluorophosphate new energy project (Phase II), with an investment of 1.2 billion yuan. After the completion of the project, the production scale will be 20000t/a of phosphorus pentachloride, 20000t/a of lithium hexafluorophosphate, 28875.05t/a of ordinary hydrochloric acid, and 56000t/a of electronic grade hydrochloric acid as by-products.