IOL Fluorochemical Weekly Report: Strong Cost Support, Upturn in Downstream Demand, Refrigerant Prices Rise Across the Board

Refrigerant: Downstream demand rebounds, prices surge across the board
This week, the refrigerant market rebounded, with prices of mainstream refrigerant products generally rising. Weekly market characteristics: Refrigerant manufacturers increased production capacity, domestic and international markets received orders in an orderly manner, and inventories remained at historically low levels. Enterprises were hesitant to sell, leading to tight supply in the circulation market. Upstream raw materials experienced price increases due to international conflicts and improved transaction conditions. On the demand side, domestic after-sales markets initiated inventory replenishment, export orders rebounded, and both foreign trade inquiries and shipments rose simultaneously. Overall, March marked a phase of pre-seasonal heating, price hikes, and inventory digestion, with a tight supply-demand balance expected to sustain high refrigerant prices in the future.

Fluorinated polymers: Strong upstream cost support, stable operation of mainstream products
This week, the fluoropolymer market remained stable, digesting recent price increases. On the cost side, upstream raw materials were driven by rising prices of commodities such as oil and natural gas, leading to widespread upward trends and stronger cost support for the full range of PVDF, PTFE, and FEP products. On the supply side, reduced production during the Spring Festival and inventory clearance led to low factory stock levels, with continued oversupply in lower-end products and persistent shortages in high-end products. On the demand side, driven by strategic emerging industries such as new energy and semiconductors, the market maintained steady growth, with expanding scale. However, significant structural differentiation emerged within the industry, where domestic substitutes eased supply for traditional demand, while high-end demand remained heavily reliant on imported sources, resulting in notable price-volume dynamics. By product category, apart from fluctuations in basic products, other upstream and downstream products maintained stable performance this week.

Weekly news

01Dongyue Group: 49000 tons/year R32 project will be put into operation at the end of April
During the 15th Five Year Plan period, there will be an explosive growth in demand for new materials in fields such as new energy and artificial intelligence. Dongyue Group stated that it will continue to consolidate and enhance its leading position in the fluorosilicon industry, and plan a number of good and large projects that meet market demand around the fluorosilicon industry chain. In terms of new refrigerants, the third-generation refrigerant 49000 tons/year R32 project will be put into operation at the end of April, achieving industry leadership; The innovative process route of the new generation refrigerant has reached the leading level in the industry, striving to firmly grasp the initiative in market competition. In terms of fluoropolymers, high-end PTFE for new energy and AI computing power, 3000 tons of fluororubber for lithium battery sealing and intelligent robot materials, Dongyue New Energy Center project, will be put into operation at the end of April. At the same time, another batch of projects will be identified to provide key materials for the fields of new energy, energy storage, semiconductors, chips, and AI, with a total investment of over 2 billion yuan.

02The 80000 ton fluorite powder technical renovation project of Huateng Mining in Qingliu County is planned to be approved
On March 3rd, the Ecology and Environment Bureau of Sanming City plans to approve and publicize the Environmental Impact Assessment Report of Qingliu Huateng Mining Co., Ltd. Qingliu Huateng Mining Fluorite Fine Powder Technical Renovation Project. The project has an investment of 60 million yuan and is located in Wudi Village, Wenjiao Township, Qingliu County, Sanming City, Fujian Province. It is planned to demolish the original 30000 ton fluorite ore flotation production line, purchase and update equipment such as ore crushers, classifiers, and plate conveyors, and rebuild it into a fluorite ore flotation production line with an annual processing capacity of 210000 tons of fluorite ore and an annual output of 80000 tons of fluorite powder.

03Changshu Sanaifu 2000t/a hexafluoropropene and other product projects are publicly announced before approval
Recently, Changshu Sanaifu Fluorine Chemical Co., Ltd. announced its annual production of 2000 tons of hexafluoropropene and 2666.67 tons of supporting tetrafluoroethylene, 17700 tons of by-product hydrochloric acid, and 610 tons of by-product hydrofluoric acid production project before approval. The existing HFP plant in the project area has a designed annual production capacity of 6000 tons, and the supporting TFE (intermediate product) plant has a designed annual production capacity of 8000 tons. Due to the sealing of some equipment during the VDF project application and approval, the actual annual production capacity of HFP is 4000 tons, and the actual annual production capacity of supporting PTFE is 5333.33 tons. It is now planned to reactivate the sealed equipment to achieve an annual increase of 2000 tons of HFP, 2666.67 tons of supporting PTFE, 17700 tons of by-product hydrochloric acid, and 610 tons of by-product hydrofluoric acid.

04The 2900 ton fluorocarbon coating project of Lianxing Environmental Protection in Sanming City has been approved
On March 3rd, the Ecology and Environment Bureau of Sanming City issued an approval for the Environmental Impact Assessment Report of the Fluorinated Acrylic Resin and Monomer Technical Renovation Project of Sanming Lianxing Environmental Protection Technology Materials Co., Ltd. The project plans to invest 60 million yuan and is located in the existing factory area of Lianxing Environmental Protection in the Fluorine New Material Industrial Park (Fubao area) of Qingliu County, Fujian Province. It will add an annual output of 2900 tons of fluorinated propylene based resin and monomers, including 1000 tons of fluorinated synthetic resin and 1900 tons of fluorinated monomers.