IOL Fluorochemical Weekly Report: Strong Cost Support and Divergent Performance of Refrigerant Products

ChinaIOL
Refrigerant: Strong Cost Support with Product-Specific Performance Variations
This week, the refrigerant market remained resilient with stable prices. Weekly market highlights:  **Supply side:** Annual production was rigidly constrained by quotas, with major factories reducing output to maintain prices. Industry operating rates stayed at 60-70%, fostering a strong upward sentiment.  **Cost side:** Tightened environmental regulations, combined with unexpected shutdowns at major plants, led to shortages in upstream fluorite powder and hydrofluoric acid supplies. Short-term bullish sentiment was intense, providing robust cost support for the entire refrigerant product line.  **Demand side:** This summer, temperatures across most regions of China were higher than average, continuously driving pre-sales and after-sales demand for air conditioners, cold chain equipment, and other devices. Demand in the new energy sector grew steadily, with heat pump thermal management systems in new energy vehicles using 40%-70% more refrigerant per unit than in fuel-powered vehicles, supporting sustained R134a demand growth.  However, it is noteworthy that the U.S.-Iran conflict carries uncertainties. If U.S.-Iran negotiations advance successfully, shipping and logistics costs as well as foreign trade demand pressures may ease accordingly.  Overall, short-term cost and demand-side benefits, coupled with rigid supply constraints under the quota system, will support continued strong performance in the refrigerant market.

ChinaIOL
Fluorinated polymers: Off-season market sees reduced production and sales, with product prices under pressure and fluctuating
This week, the fluoropolymer market saw a trend toward relaxed supply-demand dynamics, with robust cost support still in place, leading to fluctuating prices for mainstream products.  On the cost side, upstream core raw materials such as fluorite powder, hydrofluoric acid, and chloroform maintained firm prices, providing strong upward cost support.  On the supply side, manufacturers faced inventory pressure, leading to increased load reductions and maintenance shutdowns.  On the demand side, high temperatures and the arrival of the rainy season pushed market demand into an industry off-season, resulting in relatively weak demand across various segments. End-user companies primarily procured based on immediate needs.  Notably, high-end niche segments demonstrated structural growth, with industries like new energy, advanced semiconductor processes, and AI computing power driving demand expansion for high-value-added fluorine materials. Premium products such as electronic-grade hydrofluoric acid, high-purity fluorinated specialty gases, semiconductor-grade PFA and PTFE, and AI data center liquid cooling fluorinated fluids exhibited significantly better supply-demand dynamics compared to general-purpose categories.  Overall, while upstream cost support remained firm, excessive supply growth led to pronounced supply-demand imbalances. High-end fluorine materials in AI and semiconductor sectors experienced faster demand growth, resulting in relatively resilient prices and even price increases.

Weekly news

01Yonghe Group's 20000 tons/year HFC-125 production capacity transfer project approved
Recently, the Ecology and Environment Bureau of Baotou City approved the Environmental Impact Assessment Report for the 20000 ton/year HFC-125 Capacity Transfer Project of Baotou Yonghe New Materials Co., Ltd. The project is located in Baotou New Materials Industrial Park, Inner Mongolia, with an investment of 125 million yuan. It aims to construct a 20000 ton/year HFC-125 production facility, product tank area, water pump room and other supporting facilities. The production equipment for this project comes from a fixed asset owned by Arkema Company with a capacity of 20000 tons/year of F125, which belongs to capacity transfer. Water supply and drainage, power supply, and steam supply all rely on the existing factory area.

02Quanzhou Yuji Annual Production 2000 Tons R1336mzz Project Completion Acceptance
On July 13th, Quanzhou Yuji New Material Technology Co., Ltd. announced the environmental protection acceptance of the phased completion of the 2000 ton hexafluoro-2-butene and 170 ton fluorine-containing electronic special gas production line upgrade project. The project has an investment of 140 million yuan. The scale of this acceptance inspection is: an annual production of 2000 tons of hexafluoro-2-butene (31% hydrochloric acid: 5919.55 tons, 33% hydrofluoric acid 421.128 tons) and 70 tons of electronic specialty gas (5 tons of electronic grade carbonyl fluoride, 5 tons of electronic grade trifluoroacetic fluoride, 10 tons of electronic grade hydrogen fluoride, 6 tons of electronic grade phosphorus trifluoride, 30 tons of electronic grade hexafluoro-2-butene, 5 tons of electronic grade pentafluoropropene, 5 tons of electronic grade tetrafluoropropene, and 4 tons of electronic grade pentafluoropropane).

03Latest progress of Inner Mongolia Mingyue high-end fluorine new material project
According to Chifeng Rongmei News, in March of this year, Inner Mongolia Mingyue New Materials Co., Ltd.'s high-end fluorine new material project - R152a (1,1-difluoroethane) product was successfully put into production. Currently, the production line has been continuously and stably in trial production for 4 months, and the annual production capacity will reach 50000 tons after it is officially put into operation. As an important intermediate product in the fluorine chemical industry chain, difluoroethane (R152a) is not only a green upgrade substitute for traditional refrigerants, but also a "golden key" to downstream cutting-edge materials - it is a key precursor for the production of polyvinylidene fluoride and polyvinylidene fluoride. Polyvinylidene fluoride is the core material of lithium battery positive electrode binder and is widely used in photovoltaic backsheet films and semiconductor clean room wall panels.

04The Chinese Academy of Sciences and Henan Jinhai have reached a cooperation agreement on a special fluororubber project
On July 25, 2026, the signing ceremony of the special fluororubber project between the Chinese Academy of Sciences Shanghai Institute of Organic Chemistry and Henan Jinhai New Material Co., Ltd. was held in Wuyang County, Luohe City, Henan Province. The signing and implementation of this special fluororubber project marks the official settlement of the world's leading and only domestic core key technology in Wuyang. In the future, it will fill the gap in related industries in China, achieve complete import substitution, and meet the demand of the domestic and foreign billion dollar markets, injecting momentum into the construction of the local industrial new city.