IOL Fluorochemical Weekly Report: Downstream Production and Sales Increase YoY, Refrigerant Market Still Expected to Explore Rise

One week market
Refrigerant: Air conditioning and automobile production and sales have seen significant year-on-year growth, and there are still expectations of price increases in the market
This week, the supply of refrigerants continued to be tight, and prices remained firm. Market characteristics of the week: Upstream raw material fluorite powder is in short supply with high prices, while hydrofluoric acid production and sales are still acceptable, and prices have not been adjusted yet; The overall production and sales of other raw material products are good, 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. At present, the concentration of the refrigerant supply industry is high, and the discourse power is concentrated in several mainstream factories with relatively large quotas, such as Juhua, Sanmei, Sinochem, Dongyue, Yonghe, Dongyangguang, and Meilan. Due to limited supply during the year, factories have a strong mentality of reluctance to sell, and the phenomenon of "production based on sales" is widespread. The industry operating rate remains at 70-80%. In terms of products, R22 has a relatively rigid demand but with a quota reduction of more than 30000 tons within the year, and its future price is mainly stable and exploratory; R32 and R410A are mainly supplied to air conditioning plants, followed by meeting export demand. The overall demand support is stable, and the trend of tight goods and rising prices is obvious; R134a is mainly supplied to downstream car companies, with overall demand steadily increasing and supply also tight. Overall, the tight supply of refrigerants in the market coupled with good downstream demand will support the continued upward trend in the future.

Fluorinated polymers: significant year-on-year growth in production and sales in industries such as photovoltaics and lithium batteries. Fluorinated materials show weak stability and improvement
This week, the mainstream TFE series, VDF series, and HFP series products in the fluoropolymer market continued to have strong cost support and weak improvement in supply and demand, with product prices remaining stable and improving at a low level. The current market characteristics are manifested as a significant slowdown in supply side expansion, entering a large-scale stock game, and downstream application industries also facing growth pressure formed by high base after high-speed growth. There is growth potential for export demand brought about by short-term domestic growth slowdown and foreign demand growth. It is worth noting that in February, the production and sales of new energy vehicles increased by 91.5% and 87.1% year-on-year respectively, accounting for 41.9% of the total sales; The cumulative output of power batteries in January and February was 208.1 GWh, a year-on-year increase of 89.2%. In addition, lithium battery companies still have a 60% year-on-year capacity expansion plan this year, PVDF、 The demand for battery raw materials such as electrolytes will increase significantly, and the supply-demand relationship is expected to continue to improve. Considering the relative growth of traditional demand, new demand areas such as: AI+、 The new quality productivity fields such as data centers and cloud computing are still in the early stages of explosive growth, therefore, the price of fluoropolymers in the future may stabilize and improve with the improvement of business prosperity.

This Week
01
Gansu Juhua plans to use capital increase funds to implement a high-performance fluorine chlorine new material integration project
Recently, Juhua Corporation announced that Gansu Juhua plans to use the capital increase to implement a high-performance fluorine chlorine new material integration project (fluorine chlorine project, with a total investment of 19.625 billion yuan, planned to produce 35000 tons of R1234yf (multi process route) per year, 30000 tons of polytetrafluoroethylene (PTFE) per year, 10000 tons of perfluoroethylene propylene (FEP) per year, as well as 900000 tons of ion membrane caustic soda per year, 460000 tons of monochloromethane per year, 420000 tons of methane chloride per year, 400000 tons of calcium chloride per year, 198000 tons of difluorochloromethane per year and other related supporting facilities). After the completion of the project, it is expected to achieve an average annual sales revenue of 8.211 billion yuan and an average annual net profit of 1.068 billion yuan during the production period.
02
The Hongxing Fluorite 300000 tons/year Fluorite Mining Project in Damao Banner, Inner Mongolia is planned to be approved
On March 7th, the Damao Banner Branch of Baotou Ecological Environment Bureau proposed to approve the environmental impact assessment document for the construction project of "Damao Banner Hongxing Fluorite Co., Ltd. Baotou Damao Banner Former Damao Fluorite Mine Mining 300000 tons/year Expansion and Resource Recycling Project". The project is located in the existing fluorite mining area of Former Damao, with a planned investment of 199.9251 million yuan. After renovation and expansion, the fluorite raw ore mining scale will be 300000 tons/year, divided into two phases of mining, with the first phase serving for 5.9 years and the second phase serving for 4.3 years. The beneficiation plant relies on the fluorite beneficiation plant of Baotou Yufeng Chemical Co., Ltd.
03
Xinzhoubang: Haisifu Perfluoropolyether and other fluorine material product technical renovation project is planned to be approved
On March 11th, the Ecology and Environment Bureau of Sanming City issued a letter approving the Environmental Impact Assessment Report for the technical transformation project of perfluoropolyether and other fluorine materials products of Sanming Haisifu Chemical Co., Ltd. The third factory of the project has added production lines for 1500 tons/year of perfluoropolyether (PFPE) coolant, 350 tons/year of perfluoromethyl vinyl ether (PMVE), 50 tons/year of perfluoroethyl vinyl ether (PEVE), 500 tons/year of perfluoron-propyl vinyl ether (PPVE), 300 tons/year of perfluoroisobutyl ether (PFIBE), and 200 tons/year of perfluoroisobutyronitrile mixture gas.
04
Shandong Chongshan Optoelectronics' annual production of 100 tons of series fluorine materials project is planned to be approved
On March 4th, the Ecological Environment Bureau of Zibo City plans to publicly announce the approval opinions on the environmental impact assessment documents of Shandong Chongshan Optoelectronic Materials Co., Ltd.'s annual production of 100 tons of series fluorine materials project. The project is located in the existing factory area of the company in Zichuan District, Zibo City, with a planned investment of 35 million yuan. The company signed a technology transfer agreement with Chifeng Pengfeng Chemical Co., Ltd. After the project is completed, it will form a production scale of 30t/a perfluoronaphthalene, 30t/a perfluorobromooctane, 20t/a perfluorooctane, 10t/a perfluorotripropylamine, and 10t/a perfluorotributylamine with an annual output of 100 tons. The project construction period is 24 months.