IOL Fluorochemical Weekly Report: Further optimization of refrigerant supply pattern, market continues to fluctuate at a high level at the end of the year

ChinaIOL
Refrigerant: Supply pattern further optimized, market continues to fluctuate at a high level at the end of the year
This week, the refrigerant market continued to operate at a high level, with prices temporarily stable. Market characteristics during the week: On the supply side, top companies continue to implement the "quantity control and price protection" strategy, with low operating rates during the off-season. The operating rate of the mainstream refrigerant product industry is around 50-60%. On the cost side, the overall production and sales of fluorite powder and hydrofluoric acid are weak, and prices are stable. We need to pay attention to the resumption of work by major hydrofluoric acid factories in the near future; The prices of other basic raw material products have decreased more than increased due to poor shipments. Demand side: Foreign trade exports are coming to an end, and orders released in the early stage are gradually coming to an end. Terminal demand is entering the traditional off-season, and market trading is mainly focused on essential purchases. Dealers' willingness to actively purchase is significantly low, and market trading is sluggish. It is worth noting that the latest quota adjustment shows that the total quota of R32 industry has been reduced by 8.1 thousand tons, R125 has decreased by 9.6 thousand tons, R245fa has decreased by 1.8 thousand tons, while the total quotas of R134a, R143a, and R227ea have all been increased, with R134a quota increasing by about 11000 tons. The continuous optimization of the industry supply pattern will support the continued high-level oscillation operation in the future market.

ChinaIOL
Fluorinated Polymers: Coexistence of Supply Demand Game and Cost Game, Price Bottom Fluctuations
This week, the cost of the fluorinated polymer market fluctuated narrowly, with high supply and demand pressures, and prices were under low pressure near the cost line and remained on the sidelines. On the cost side, the prices of basic raw materials such as fluorite and calcium carbide have slightly decreased; The prices of methanol and ethylene have increased more or decreased less due to geopolitical and import contraction, providing strong cost support for the TFE series; Intermediate products R22, R152a, and R142b are caught in a dilemma of price fluctuations due to upstream and downstream pressure. On the supply side, the expansion of mainstream fluoropolymer products in recent years has led to overcapacity, and the internal price competition in factories has caused prices to continue to bottom out. On the demand side, in the downward market environment, the quantity and price are weak, and the terminal purchases according to demand. It is worth noting that the structural increment is concentrated in the high-end track: advanced semiconductor processes, AI computing infrastructure, and new energy continue to drive high value-added demand. The short-term production and sales of electronic grade hydrofluoric acid, high-purity fluorinated specialty gases, semiconductor grade PFA and PTFE, and AI data center liquid cooled fluorinated liquids are still relatively small. The price difference between high-end electronic grade PTFE and general grade PTFE has nearly tripled. Before the outbreak of new demand for popular applications, it will bring new growth space to the industry. The short-term supply and demand dilemma of fluorinated polymers is difficult to change, and the price extension will continue to be under pressure and fluctuate at a low level, with limited fluctuations.

Weekly news

01Announcement of Zhejiang Binger's 10000 ton new environmentally friendly high-purity refrigerant mixing and packaging project
On October 9th, Qujiang Branch of Quzhou Ecological Environment Bureau issued a notice on the proposed approval of environmental impact assessment. Zhejiang Binger New Refrigerant Co., Ltd. has entered the stage of proposed approval for the environmental impact assessment report of the new environmentally friendly high-purity refrigerant technology renovation project with an annual mixing and packaging capacity of 10000 tons. The project has an investment of 66 million yuan and will construct 10000 tons of new environmentally friendly high-purity refrigerants for annual mixing and packaging. The mixing scheme includes production capacities of 500t/a R448A, 500t/a R449A, 500t/a R513A, etc.

02Ministry of Ecology and Environment: Agrees to Adjust Hydrofluorocarbon Production Quotas for 19 Enterprises in 2026
On October 12th, the Ministry of Ecology and Environment issued a reply letter approving the adjustment of production quotas for hydrofluorocarbons in 2026 for 19 enterprises including Inner Mongolia Yonghe Fluorochemical Co., Ltd. The total change in the second HFC production quota adjustment in 2026 is: a reduction of 1141 tons in production quotas and an increase of 504 tons in domestic production quotas. The production quota for R134a has been significantly increased by 11274 tons, and the domestic production quota has increased by 9281 tons; In addition, the production quotas and internal production quotas for R143a, R227ea, and R152a have all been increased; The quotas for R125, R32, and R245fa have been reduced.

03Xinzhoubang: Expected net profit of 1.53-1.58 billion yuan in the first three quarters of 2026
On October 13th, Xinzhoubang released its performance forecast for the first three quarters of 2026. The company expects to achieve a net profit attributable to the parent company of RMB 1.530-1.58 billion, a year-on-year increase of 104.53% to 111.22%. According to the performance forecast, the battery chemical business seizes the opportunities brought by the high prosperity of the energy storage market and the steady growth of the power battery market. Relying on technological and brand advantages, it collaborates with the joint venture Jiangxi Shilei Fluorine Materials Co., Ltd. and the holding subsidiary Jiangsu Hankang New Materials Co., Ltd. to strengthen the supply of key raw materials lithium hexafluorophosphate and lithium battery additives. The integrated operation advantage continues to be released, and the production and sales volume grow rapidly. The sales price steadily recovers, and the sales revenue and profit achieve significant year-on-year growth.

04San Ai Fu Fu You K-type Perfluoropolyether and Hexafluorobutadiene Expansion Project Approved
On October 14th, the Ecology and Environment Bureau of Nanping City made an approval decision on the Sanaifuyou K-type perfluoropolyether fluid project and hexafluorobutadiene expansion project of Fujian Huayi Sanaifuyou New Materials Co., Ltd. The project has an investment of 225.5823 million yuan and is expected to last for 24 months. The renovation and expansion project will produce 400 tons of K-type perfluoropolyether, 400 tons of hexafluorobutadiene, 956 tons of hexafluorodichlorocyclohexane, and 824 tons of zinc chloride solution annually.