IOL Fluorochemical Weekly Report: Refrigerant prices remain high, supply and demand pressure of fluorinated polymers increases

ChinaIOL
Refrigerant: Cost driven and supply constrained resonance continues high momentum market trend in the future
This week, refrigerant market transactions remained stable and prices remained high. Market characteristics during the week: On the supply side, mainstream HFC refrigerant factories continue to control quantity and maintain prices, while enterprises continue to actively reduce production and raise prices. The market supply remains tight. On the cost side, the supply of fluorite is tight due to stricter mine control measures, and there is a high probability of a price increase in September; Anhydrous hydrofluoric acid has experienced a tight price increase due to the cost support of fluorite and uncertainty in the resumption of production by large northern factories, with a monthly price increase of 200-300 yuan/ton compared to the previous period; However, the upstream chloride raw materials have been affected by tight supply, and prices have remained stable with only slight increases. On the demand side, the expected production of air conditioners in September has declined compared to the previous month, and the demand for new installations in the market has significantly weakened; Downstream traders and terminal procurement are mainly focused on replenishing inventory for essential needs, with few large orders and a light trading atmosphere on site. The demand in segmented fields such as automotive air conditioning after-sales, cold chain logistics, and new energy thermal management is still acceptable, but the increment is limited, making it difficult to offset the overall off-season effect. Due to high sea freight rates and geopolitical factors in the Middle East, the export side lacks short-term momentum, and the demand for overseas replenishment is suppressed. Overall, although downstream air conditioning domestic sales are under pressure and traditional off-season demand is weak, it is expected that the short-term refrigerant market will continue to operate strongly under the support of collective reduction in effective production capacity. Future demand changes need to focus on the dynamics of geopolitical conflicts in the Middle East.

Fluorinated polymers: reduced cost support, increased supply and demand pressure
This week, the cost support for mainstream products in the fluoropolymer market has slightly decreased, and the pressure of supply and demand has led to downward pressure on prices. On the cost side, upstream core raw materials such as fluorite powder and hydrofluoric acid are experiencing price increases, while intermediate monomer raw material products R22, R152a, and R142b are under pressure from upstream and downstream, facing a dilemma of rising and falling. Overall, there is insufficient cost support for downstream fluoropolymer products. On the supply side, the end of parking for top enterprises and the high load production of existing production enterprises have led to significant pressure on supply and demand, as well as inventory pressure. On the demand side, with the arrival of hot weather and rainy season, market demand has entered the off-season of the industry, and end enterprises mainly purchase on demand. It is worth noting that the high-end sub sectors are showing structural growth, with new energy, advanced semiconductor processes, AI computing power industry, and continuous expansion of demand for high value-added fluorine materials. Short term production and sales of high-end products such as electronic grade hydrofluoric acid, high-purity fluorine containing special gas, semiconductor grade PFA, PTFE, and AI data center liquid cooled fluorine solution are still relatively small. Overall, although there is a surge in demand for celebrity hotspots, the short-term cost support from upstream has weakened and the supply-demand contradiction has become prominent, leading to a continued downward pressure trend for mainstream fluoropolymers.

Weekly news

01Environmental Impact Assessment Approval for Cangzhou Lingang Heji 5000 tons/year R1233zd Project
On August 21st, the Administrative Approval Bureau of Huanghua City, Bohai New Area, Cangzhou made an approval decision on the environmental impact assessment document for the 5000 ton annual production of trans-1-chloro-3,3,3-trifluoropropene [HCFO-1233zd (E)] project of Cangzhou Lingang Heji Chemical Co., Ltd. The project has an investment of 35.8 million yuan and, upon completion, will have an annual production capacity of 5000 tons of HCFO-1233zd (E), with by-products of 530 tons of trans-1,3,3-tetrafluoropropene and 508 tons of 1,1,1,3,3-pentafluoropropane.

02Draft for Soliciting Opinions on the Total Quota Setting and Allocation Plan for HCFCs and HFCs in 2027
On August 24th, the General Office of the Ministry of Ecology and Environment issued a letter soliciting opinions on the total quota setting and allocation plan for ozone depleting substances and hydrofluorocarbons in 2027. On the basis of the 2026 quota (including additional quotas), the controlled use production quota and internal use production quota allocated this time will be increased by 150 tons of HFC-236fa production quota for electronic specialty gas in accordance with the growing demand for HFC-236fa in the semiconductor industry, including 150 tons of internal use production quota; The total production quota for controlled use of HCFCs is 151416 tons, and the total production quota and usage quota for internal use are both 79724 tons.

03Tianci Material: 35000 tons of lithium hexafluorophosphate newly upgraded production line has been completed
Tianci Materials recently stated in a public exchange with investors on an investment platform that in the first half of 2026, the company achieved a revenue of 14.709 billion yuan, a year-on-year increase of 109.28%, and a net profit attributable to shareholders of the listed company of 2.86 billion yuan, a year-on-year increase of 967.91%. The production pace of the company's lithium hexafluorophosphate and electrolyte is mainly based on market demand and market share targets. The originally planned 35000 ton new technological transformation production line for lithium hexafluorophosphate has been completed, and the company will gradually release production capacity according to market and order demand; With the continuous release of downstream demand, the utilization rate of the company's lithium hexafluorophosphate production capacity will also be maintained at a high level.

04Juhua Corporation: Revenue from Fluorinated Polymer Materials Business Increased by 32.31% YoY
On the evening of August 25th, Juhua Corporation disclosed its 2026 semi annual report. In the first half of 2026, the company achieved a revenue of 13.34 billion yuan, a year-on-year increase of 0.07%; The net profit attributable to shareholders of the listed company reached 2.65 billion yuan, a year-on-year increase of 29.23%. During the reporting period, the company's core business saw an upward trend, and structural adjustments continued to deepen. During the reporting period, the revenue of fluoropolymer materials business was 1.162 billion yuan, a year-on-year increase of 32.31%, with production and sales of 76000 tons and 26600 tons respectively; The average price of fluorinated polymer materials was 43700 yuan/ton, a year-on-year increase of 15.62%.