IOL Fluorochemical Weekly Report: Quota Policy Combined with Demand Growth, Refrigerant Long term Market Steady and Explores Rise

One week market
Refrigerant: Quota policy combined with demand growth, long-term market stable and exploring upward trend
This week, refrigerant production and sales are good, and prices continue to rise. Market characteristics: Upstream raw material fluorite powder is tight and stable in price, but the recent continuous rise in sulfuric acid prices has led to increased cost pressure on hydrofluoric acid, resulting in a passive upward adjustment of hydrofluoric acid prices; The overall production and sales of other raw material products have improved, with prices rising more and falling less. However, the current refrigerant market prices are mainly affected by supply and demand, and small fluctuations in costs have little impact on their prices. Since the implementation of quota production for HFC refrigerants in 2024, the concentration of the supply side industry has been high, and the discourse power is concentrated in several mainstream factories with relatively high quota quantities, such as Juhua, Sanmei, Sinochem, Dongyue, Yonghe, Dongyangguang, and Meilan. The relatively tight supply has led to a strong mentality of reluctance to sell in factories, and the phenomenon of "production based on sales" is common. According to Industry Online statistics, the year-on-year increase in household air conditioning emissions in March exceeded 10%, and downstream production and sales are good, which is expected to continue to raise the prices of mainstream refrigerants R32, R410A, etc. R22 has a relatively rigid demand but with a quota reduction of more than 30000 tons within the year, and there is a strong expectation of price increases in the future market. Overall, the quota policy is favorable for improving the supply and demand pattern, and the long-term market for refrigerants is expected to continue to rise.

Fluorinated polymers: slow improvement in new and old demand, short-term market will continue to bottom out
This week, there was a significant oversupply in the fluoropolymer market, with mainstream TFE series, VDF series, and HFP series products collectively consolidating at a low level. The current market characteristics are manifested as: after the industry experiences expansion, the release of new and old production capacity leads to intensified competition; Traditional demand is relatively sluggish, downstream demand is on demand, and there is a weak willingness to hoard goods. The growth of new demand still needs a process. The prices of upstream basic raw materials and intermediate individual products on the cost side remain stable and fluctuating, making it difficult to form upward support on the cost side. It is worth noting that the "normal low growth rate" of the global economy is an external environment that affects traditional demand, and new demand areas such as: AI+、 The new productivity fields such as data centers and cloud computing may change the supply and demand pattern and create new growth opportunities, and the short-term fluorinated polymer market will continue to consolidate at the bottom.

This Week
01
Industry Online: 24.76 million units of household air conditioners produced in March 2025, a year-on-year increase of 13.5%
According to the latest three major white electricity production reports released by Industry Online, the total amount of air ice washing production in March 2025 was 40.5 million units, an increase of 7.6% compared to the same period last year. In terms of products, the production of household air conditioners in March was 24.76 million units, an increase of 13.5% compared to the same period last year; Domestic production was 4.36 million units, a year-on-year increase of 2.7%. The production of refrigerators reached 8.79 million units, an increase of 0.5% compared to the same period last year; Export production was 4.43 million units, a year-on-year increase of 8.9%. 6.95 million washing machines were produced, a decrease of 2.1% compared to the same period last year; Domestic production of 3.3 million units decreased by 1.7% year-on-year.
02
Haohua Technology plans to transfer 100% of Zhonghao Chengguang's shares to Sinochem Blue Sky
On February 24th, Haohua Technology (600378. SH) announced that in order to accelerate the deep integration and fusion of fluorine chemical business, the company plans to transfer 100% equity of its wholly-owned subsidiary Zhonghao Chengguang Chemical Research Institute Co., Ltd. (Zhonghao Chengguang) to its wholly-owned subsidiary Zhonghua Lantian Group Co., Ltd. (Zhonghua Lantian). After the transfer is completed, Zhonghua Blue Sky will directly hold 100% equity of Zhonghao Chengguang, and Zhonghao Chengguang will become a wholly-owned subsidiary of Zhonghua Blue Sky. Haohua Technology stated that the completion of this transfer will help the company further promote business integration, integration, and collaborative development, improve operational management efficiency, and enhance market competitiveness.
03
Fujian Zhongzhou New Materials High end Fluorine New Materials Project Phase I Environmental Impact Assessment Approved
On February 24th, the Ecological Environment Bureau of Sanming City approved the Environmental Impact Assessment Report for the High end Fluorine New Material Project (Phase I) of Fujian Zhongzhou New Material Technology Co., Ltd. and made it public. The project is located in Jikou Circular Economy Industrial Park, Sanming City. The construction content of the project includes an annual production of 1500 tons of perfluorohexane, 150 tons of perfluorotributylamine, 250 tons of perfluorotripropylamine, 50 tons of trifluoromethanesulfonic acid, and 100 tons of lithium bis (trifluoromethanesulfonyl) imide; By products include hexafluoropropylene trimer, potassium sulfate, potassium fluoride, and 30% hydrofluoric acid.
04
Environmental Impact Assessment Announcement for Fujian Kerun's Annual Production of 1500 Tons of High end Fluorinated Polymers Project
On February 20th, the environmental impact assessment of Fujian Kerun Century Hydrogen Energy Materials Co., Ltd.'s annual production of 1500 tons of high-end fluorine-containing polymers project was publicly announced for the first time. The total investment of this project is 345.8471 million yuan, mainly for the construction of a production line relocation and technical renovation project with an annual output of 5000 tons of trifluoroacetic acid series products (5190t/a trifluoroacetic acid chloride, 4027t/a trifluoroacetic acid, 2500t/a trifluoroacetic acid ethyl ester and by-products 8200t/a hydrochloric acid, 3150t/a sulfuric acid, 3000t/a sulfuryl chloride) and 3000 tons of hexafluoropropene series products (2400t/a hexafluoropropene trimer, 600t/a hexafluoropropene dimer {perfluorohexane methyl ether 400t/a and perfluorohexane 200t/a} and by-product sodium chloride 118t/a).