IOL Fluorochemical Weekly Report: Refrigerant Prices Consolidate at Year-End High, Fluoropolymer Supply-Demand Tightens in Some Segments

Refrigerant: Entering the Off-Peak Season for Production and Sales, Market Adjustments at High Levels
This week, the refrigerant market maintained firm quotations, with prices remaining at high levels. Key market characteristics during the week: As the year-end approached, mainstream factories exhausted their quotas, and the domestic market largely halted new orders, focusing instead on fulfilling earlier commitments. The export market, affected by prolonged license processing and shipping schedules, has essentially suspended quotation and order-taking. Upstream basic raw materials benefited from improved demand, leading to overall production and sales growth, with more price increases than declines. Notably, refrigerant factories generally reduced production in late December, decreasing purchases of TCE and PCE, which led to declining prices due to weak demand. On the demand side, cumulative household air conditioner production and sales from January to October showed a year-on-year growth of approximately 2-3%, while automotive production and sales grew by 12-13%, providing strong support for refrigerant prices to remain at high levels. Overall, with mainstream refrigerant product quotas nearly depleted by year-end, market trading activity weakened, yet bullish expectations for the future remained strong. Currently, factories are cautiously accepting orders, primarily adopting a wait-and-see approach. It is expected that by the latter half of the month, domestic and international quotation and order-taking will gradually normalize. In the short term, the refrigerant market will likely consolidate at high levels.

Fluorinated polymers: Supply-demand tightens, coating-grade PVDF surges significantly
This week, the fluoropolymer market saw most products continuing their weak and sluggish trend, with prices remaining stable. Key market characteristics during the week: The firm cost base provided a "floor price" for downstream fluorine materials, while short-term supply-demand imbalances persisted across different grades and applications, primarily driven by varying market share positions among enterprises in niche segments.  On the supply side, Sanyafu recently halted production for maintenance, and Juhua also reduced its operating load. On the demand side, traditional applications maintained steady demand, while emerging sectors such as semiconductors, new energy, electronics, and high-end manufacturing showed limited growth, keeping overall demand weak.  By product category, organic fluorine monomers like TFE, HFP, and VDF experienced loose supply, with prices stabilizing near the cost line. Mainstream manufacturers maintained high self-sufficiency rates, while external procurement was limited, leading to narrow fluctuations across the supply chain and significant internal adjustments.  In summary, the fluoropolymer market continued its overall weakness this week, with slight improvements observed in certain applications.

Weekly news
01
Zhejiang Fanghua Chemical's 10000 ton fourth generation new environmentally friendly refrigerant project is planned to be approved
On November 26th, the Ecological Environment Bureau of Shaoxing City plans to make public the approval opinions on the environmental impact assessment documents of Zhejiang Fanghua Chemical Co., Ltd.'s annual production of 10000 tons of fourth generation new environmentally friendly refrigerants project. The project requires an investment of 157.944 million yuan to renovate and utilize existing factory buildings, as well as to construct new refrigeration unit rooms and hydrogen compressor rooms on vacant land, with an additional building area of 490 square meters. Equipment such as reactors, distillation towers, and HF directional conversion devices will be purchased to achieve an annual production capacity of 10000 tons of the fourth generation new refrigerant (tetrafluoropropene), with an annual by-product of 19000 tons of 30% hydrofluoric acid.
02
Xinjiang Ruoqiang adds 900000 tons/year fluorite mining project
Recently, the environmental impact assessment of the 900000 tons/year mining project of Gaijike Fluorite Mine in Ruoqiang County, Xinjiang Anboruikang Energy Co., Ltd. was announced on relevant websites. The open-pit mining scale of the fluorite mine in this project is 900000 tons per year, the underground mining scale is 600000 tons per year, and the construction area is 2787500 square meters. In May 2025, the 1.5 million tons/year beneficiation plant project of Piazi Daban fluorite mine started construction. The total investment of the beneficiation plant is 1.6 billion yuan, and it will build a mine with an annual production capacity of 600000 tons in Piazi Daban. It will integrate the company's Gaijike, Qianghe four districts, and Yaganbuyang fluorite mines to construct a 1.5 million tons/year beneficiation plant.
03
Pre approval public announcement of planning and architectural design scheme for Jiangxi Liwen 10000 ton hexafluoropropene project
On November 26th, the People's Government of Ruichang City announced the pre approval of the planning and architectural design scheme for the "Jiangxi Liwen Chemical Co., Ltd. Annual Production of 10000 Tons of Hexafluoropropene Project". The project is located in the first factory area of Li Culture Industry in Matou Industrial City, Ruichang City, Jiujiang City, Jiangxi Province, with an investment of approximately 223.61 million yuan. It is planned to build a set of hexafluoropropene unit with an annual output of 10000 tons (by-product 1000 tons/year octafluorocyclobutane), as well as production supporting facilities and a restaurant in the front area of the factory.
04
Shandong Qifu Molten Fluororesin Phase II and Fluorine containing Heat Exchanger Project Proposed Approval Announcement
Recently, the Zibo Ecological Environment Bureau approved the Environmental Impact Assessment Report for the Phase II Molten Fluororesin and Fluorine containing Heat Exchanger Project of Shandong Qifu New Materials Co., Ltd. and made it public. The project is located in Gaoqing Chemical Industry Park, Zibo City, with a planned investment of 1.03197 billion yuan. The main construction contents include a 3000 ton/year modified polytetrafluoroethylene plant, a 3000 ton/year fluororubber plant, a 6000 ton/year fluorine-containing heat exchange liquid plant (which can simultaneously produce 2000 tons/year perfluoro-4-methyl-2-pentene, 1000 tons/year hexafluoropropylene trimer, and 3000 tons/year perfluorohexane) and other main production plants, as well as supporting public and auxiliary facilities and environmental protection facilities. After the completion of this project, the modified polytetrafluoroethylene and fluororubber raw materials will utilize the tetrafluoroethylene produced by the under construction project, and the corresponding operating load of the under construction hexafluoropropylene will be reduced to 6954 tons/year.