IOL Fluorochemical Weekly Report: The peak season for downstream refrigerants is approaching, supporting the industry's high prosperity

One week market
Refrigerant: The downstream peak season is approaching, with strong demand supporting the industry's high prosperity
This week, driven by strong downstream demand, mainstream refrigerant prices have all experienced price increases. Market characteristics of the week: The upstream raw material hydrofluoric acid has been affected by the recent continuous cost increase, with a price increase of about 500 yuan/ton this month; The supply of trichloroethylene is expected to decrease, and new order prices are expected to rise; The weak downstream demand and sluggish production and sales of tetrachloroethylene have led to a price drop; The overall production and sales of other raw material products are still acceptable, with prices mainly fluctuating within a narrow range. Under quota control, the supply is limited within the year, supported by strong downstream demand, and the industry's operating load remains at around 80%. Entering the second quarter, with the rise in temperatures in various regions, the peak season for downstream air conditioning, automotive, and refrigeration industries is approaching, and there is an expected increase in domestic demand. In addition, the current mainstream refrigerant exports are good, and factories have sufficient confidence in rising prices. It is expected that with the start of the peak season, the tight supply of refrigerants will intensify, and prices are expected to rise to a new high. It is worth noting that the United States recently announced that it will soon implement a 34% equivalent tariff on China. However, given that the United States has previously imposed anti-dumping tariffs of 160-285% on mainstream HFC refrigerant products, the quantity exported to the United States is relatively small, and the latest tariff adjustment may have little impact on refrigerant export demand.

Fluorinated polymers: temporarily stable prices, industry faces short-term pressure and long-term differentiation
This week, the mainstream product prices in the fluoropolymer market have remained stable, and the industry has shown a characteristic of "short-term pressure and long-term differentiation". On the one hand, the price increase of upstream basic raw materials such as fluorite powder, sulfuric acid, and hydrofluoric acid has led to an increase in cost pressure for production enterprises. On the other hand, in recent years, the expansion speed has been faster than the demand growth rate of the application industry. The TFE series, HFP series, and VDF series products collectively face downward price pressure. Although enterprises need to actively respond through cost control and differentiated layout, the fluorine material business can feel the industry dilemma of "increasing quantity and decreasing price" from the annual reports of top listed companies such as Dongyue Group, Liwen Chemical, Xinzhoubang, and Tianci Materials. The bullish and bearish forces of upward short-term market cost support and downward supply and demand relationship will still exist simultaneously. The United States' imposition of "equivalent tariffs" on trading partners may affect short-term demand for fluoropolymer exports. Both the demand side and the cost side, positive support is conducive to activating the prosperity of the industrial chain and improving the market.

This Week
01
The first phase of Fujian Sangang Fuduobang Fluorine New Material Industry Construction Project has been approved
On March 27th, the Ecological Environment Bureau of Sanming City approved the Environmental Impact Assessment Report for the Phase I of Fujian Sangang Fuduobang Fluorine New Material Industry Construction Project and made it public. The project will be implemented in three phases, with a total investment of approximately 1.65 billion yuan and a planned construction period of three years. Two sets of 25000 tons/year anhydrous hydrogen fluoride units will be built on approximately 110 acres of land in Fubao, and 40000 tons/year R22, 20000 tons/year TFE, 17000 tons/year PTFE, and 3000 tons/year FEP units will be built on approximately 520 acres of land in Jinxing.
02
The construction of Inner Mongolia Sanaifu 60000 ton difluoroethane R152a project is underway
On March 24th, the reporter walked into the construction site of the 60000t/a difluoroethane (F152a) project of Inner Mongolia Sanaifu Wanhao Fluorine Chemical Co., Ltd. located in Fengzhen City, Ulanqab City. The construction personnel were working hard to meet the deadline, and the scene was busy. All construction work was proceeding safely and orderly according to the plan. The 60000t/a difluoroethane (F152a) project of Inner Mongolia Sanaifu Marriott Fluorine Chemical Co., Ltd. is located in the north factory area of Sanaifu Marriott. The total investment of the project is 595.59 million yuan, covering an area of about 75 acres. The construction of this project will further solidify the industry advantage of San Ai Fu Marriott F152a, F142b, VDF, as well as downstream PVDF and FKM products in the entire fluorine chemical industry chain.

03
The 26000 tons/year high-performance organic fluorine material project of Zhonghao Chengguang has been completed and put into operation
Recently, the main unit of the "26000 tons/year high-performance organic fluorine material project" of Zhonghao Chengguang, a subsidiary of Sinochem Blue Sky, was completed and put into operation in the Chuannan New Materials Chemical Industrial Park in Zigong, Sichuan Province, with qualified products being produced offline. The project started construction in April 2022 and took more than 30 months to complete the construction of core equipment and supporting projects such as tetrafluoroethylene monomer and polytetrafluoroethylene. It was completed by the end of 2024 and entered the trial production stage, ultimately achieving successful start-up of the project. The project adopts over 60 core patented technologies independently developed by Zhonghao Chengguang, covering the production of high-performance organic fluorine materials such as polytetrafluoroethylene dispersion resin, perfluoroalkoxy resin, and meltable polytetrafluoroethylene resin.
04
Changlu New Materials Phase II Project Commences Construction
On March 27th, the Changlu New Materials Fluorinated Organic New Materials Industrialization Phase II Project (Changlu New Materials Phase II Project), with a total investment of 500 million yuan, an additional production capacity of 2072 tons per year, and an output value exceeding 400 million yuan, started construction in Nangang Industrial Zone, Tianjin. It is reported that the second phase of the project, which covers a total area of 120800 square meters and has a total investment of 500 million yuan, will construct two sets of hydrofluoroether units and supporting public works in Tianjin Nangang Industrial Zone. After reaching production capacity, it can add 2072 tons/year of production capacity, with an annual output value exceeding 400 million yuan. The engineering project fully integrates the resources of the Beijing Tianjin Hebei region, forming a collaborative innovation ecosystem of "basic research application development industrial transformation".