IOL Fluorochemical Weekly Report: High temperature weather will accelerate demand release, refrigerant prices are expected to further rise

One week market
Refrigerant: High temperature weather is approaching, peak season demand release will further drive up future market prices
This week, the downstream refrigerant market is in the traditional peak season, and although product prices remain stable, there is a strong expectation of further market growth. Market characteristics: Upstream basic raw materials such as fluorite powder and hydrofluoric acid have sufficient supply, and prices are temporarily stable; The prices of other raw material products have decreased more than increased due to insufficient support from downstream overall demand. Affected by different supply and demand patterns, refrigerant products operate differently. Popular refrigerant products such as R32 and R134a are basically produced at full capacity in factories, while other products are subject to quota control. Factories have a strong reluctance to sell and mainly produce on demand. Recently, high temperatures of over 35 degrees Celsius have occurred in Shaanxi, Shanxi, Henan, Hubei and other places in China, with some areas experiencing temperatures exceeding 40 degrees Celsius. Against the backdrop of continuously improving industry ecology and competitive order, the arrival of high temperatures will accelerate the release of peak season demand. It is expected that the refrigerant market will continue to face tight supply in the short term, and prices will further rise.

Fluorinated polymers: overcapacity leads to long-term low market operation
This week, mainstream products in the fluoropolymer market continued to play a game of stock and increment, with product prices consolidating at the bottom. Although the self-control ability on the cost side has greatly improved, in a weak market, the fluctuations in raw material prices and costs also show a characteristic of large stability and small fluctuations, which provides stable cost support for TFE and VDF series products. The downstream application industry on the demand side is facing the characteristics of slow growth in traditional demand industries and faster supply growth than demand growth in new segmented fields. In summary, due to the slow global economic growth and the fact that the supply of mainstream fluoropolymers is growing much faster than the demand growth brought about by economic growth, the future fluorine material market will face the contradiction of overcapacity and remain weakly stable.

This Week

01Dongyangguang: The company is expected to fully benefit from the increased demand for refrigerants brought about by high temperature weather
On May 21st, Dongyangguang provided answers to investors' concerns on the public investment platform. In the Q&A session, Dongyang stated that the intensification of global high temperature weather will significantly increase the market demand for air conditioning and other refrigeration equipment, thereby driving the growth of refrigerant demand. At present, the company has established close cooperative relationships with many well-known air conditioning production enterprises at home and abroad. With high-quality products and strong customer resources, the company is expected to fully benefit from the growth in refrigerant demand caused by high temperature weather, and continue to enhance market competitiveness and profitability. In addition, the company also stated that it has actively reserved fourth generation refrigerant technology and laid out mainstream fluorinated coolant perfluoropolyether and hexafluoropropylene oligomers to cope with the future development and sustainable development of the industry.

02Jiangxi Wofu 90000 ton electronic grade hydrofluoric acid project is planned to be approved
On May 6th, the Ecology and Environment Bureau of Shangrao City plans to issue approval opinions on the annual production of 90000 tons of electronic grade hydrofluoric acid project of Jiangxi Wofu Chemical Technology Co., Ltd. and make it public. The project has an investment of 107.5 million yuan and is located in the Sulfur Chemical Industrial Park of Dexing High tech Industrial Park in Jiangxi Province. It plans to use intermediate products such as anhydrous hydrogen fluoride, potassium permanganate, hydrogen peroxide (30%), and pure water as raw and auxiliary materials. Through pretreatment, distillation, condensation, absorption, cooling, and packaging processes, it aims to produce 90000 tons of EL grade hydrofluoric acid that meets the requirements of "Industrial High Purity Hydrofluoric Acid" HG/T4509-2023 annually.

03Syensqo: Signed over 150 million euros battery grade PVDF supply agreement
On May 15th, Syensqo, a global leader in advanced materials, announced the signing of new multi-year contracts with automotive OEMs and battery manufacturers to provide battery grade Solef ® Polyfluoroethylene (PVDF). The long-term contract was signed in the first quarter of 2025, with cumulative net sales exceeding 150 million euros. These products will be delivered from Syensqo's flagship factory in Tavaux, France, using its state-of-the-art suspended PVDF technology. The PVDF production capacity expansion of the base is expected to be completed by the end of 2025 and begin operations in 2026, serving customers in multiple end markets including healthcare, electronics, energy, and construction industries.

04Haisifu's annual production of 30000 tons of high-end fluorine fine chemicals project approved
On May 20th, the Ecology and Environment Bureau of Sanming City issued a letter approving the Environmental Impact Assessment Report for the annual production of 30000 tons of high-end fluorine fine chemicals project of Sanming Haisifu Chemical Co., Ltd. The project is located in Zone 1 of Mingxi County Industrial Concentration Zone, and the construction content includes the addition of an annual production line for 1000 tons of environmentally friendly power insulation gas and filling, 9100 tons of environmentally friendly fluorine cleaning agents, 600 tons of perfluoroene ether series, 370 tons of fluorine surfactants, 200 tons of lithium battery additives, and 10000 tons of other fluorine-containing chemicals, as well as supporting 500 tons of fluorine nitrogen gas and 80 tons of hydrogen gas for self use.