IOL Fluorochemical Weekly Report: Good Production and Sales in the Domestic and Foreign Trade Markets of Refrigerants, Popular Products Continue to Rise

One week market
Refrigerant: Good production and sales in domestic and foreign trade markets, popular products continue to have a strong market trend
This week, the domestic demand for refrigerants in the market has slightly decreased, while the demand for long export orders in foreign trade has increased. The annual quota consumption continues to maintain a tight balance between production and sales, and the prices of popular products continue to rise. Market characteristics during the week: With the price of refrigerant R22 rising to 40000 yuan/ton, the production and sales of commercial refrigeration substitute product R507 have improved recently, and the market demand has increased significantly. The price of the fire extinguishing agent product R227EA has hit a new high and remained strong, and the price increase has stimulated the conversion of actual demand. On the demand side, as we enter August, the production scale of the air conditioning industry has decreased month on month to 13 million units, a decrease of 6.6%. Pre sales demand for refrigerants R32 and R410A continues to decrease; The automotive industry continues to experience strong structural growth and steady overall growth, with a steady increase in demand for R134A. Overall, the current tight supply-demand balance in the refrigerant industry has a strong sustainability, especially with popular products consuming more than half of their quotas in the first half of the year. Factories have a strong reluctance to sell, and there has been no internal competition, resulting in more price increases and less price decreases.

Fluorinated polymers: High end quantity, low price, high, medium and low-end prices, severe price competition, accelerating industry reshuffle
This week, the fluoropolymer market continued the typical differentiation trend of "tight high-end supply, low usage, high price and gross profit margin; overcapacity in the mid to low end, large usage, and severe price internalization", with weak quantity and price in all links of the entire industry chain. Market characteristics of the week: supply side: overcapacity leads to a decline in factory operating rates, and future new projects and scale are significantly reduced. Cost side: basic raw material prices are fluctuating at the bottom, downstream production and sales are shrinking, and upstream basic raw material supply and demand pressure is increasing. Prices of fluorite, hydrogen fluoride, chloroform, etc. have fallen to near cost line levels. Demand side: demand growth is clearly diversified, and in addition to the "new three" of lithium batteries, photovoltaics, and semiconductors, demand for fluoropolymers is showing a rapid growth trend in the following fields. The proportion of applications in emerging fields such as hydrogen energy, biomedicine, 5G communication, environmental protection and energy conservation, and aerospace has increased from 15% in 2020 to over 30%, becoming the second growth curve after new energy. In the face of market competition, production enterprises pay more attention to the research and development of high-end brands, cross industry certification (such as semiconductor and medical GMP certification), and optimize the industrial chain to strengthen integration and collaboration.

This Week
01
Jiangxi Liwen Chemical's New Green Refrigerant Project (Phase I) Public Announcement
On July 15th, the Ecological Environment Bureau of Zibo City released the second announcement of the Environmental Impact Assessment of the New Green Refrigerant Project of Jiangxi Liwen Chemical Co., Ltd. The total investment of the project is about 335.36 million yuan, and it will be renovated and expanded in the second factory area of Jiangxi Liwen Chemical Co., Ltd. After the completion of this project, the annual output will be 10000t/a of pentachloropropane (R240fa), 4000t/a of pentafluoropropane (R245fa), and 3000t/a of tetrafluoropropene (R1234ze). Among them, 10000t/a of pentachloropropane is used to produce pentafluoropropane, and the remaining part is sold externally; All 4000t/a pentafluoropropane is used to produce 3000t/a tetrafluoropropene.
02
Environmental Impact Assessment Announcement for Major Changes in the Fluorite Mining and Processing Project of Jinlongxi Mining in Jiangxi Province
On July 25th, the Ecological Environment Bureau of Nancheng County released the "Environmental Impact Assessment Report on Major Changes in the Fluorite Mining and Processing Project of Jiangxi Jinlongxi Mining Co., Ltd." for public acceptance. The project is located in Dazhu Village, Xunxi Township, Nancheng County, Fuzhou City, Jiangxi Province, with a total investment of 49.9866 million yuan. After completion, the project can achieve an annual production capacity of 60000 tons of fluorite and 20000 tons of fluorite powder.
03
Billion level fluorine material integration project landed in Xinjiang
On July 28th, Urumqi Ganquanbao Economic and Technological Development Zone and Nantong Donggang Chemical Co., Ltd. successfully signed a major investment agreement to construct a fluorine material integration and downstream extension project in Ganquanbao Economic and Technological Development Zone. The fluorine material integration project (Phase I) signed this time has an investment of up to 3.95 billion yuan, and is planned to officially start construction in October 2025 and be completed and put into operation in April 2027. The project will utilize advanced processes such as thermal cracking, dispersion polymerization, and suspension polymerization, with trichloromethane, tetrachloropropane, and anhydrous hydrogen fluoride as the main raw materials, focusing on the production of high value-added fluorinated polymer monomers and high-end polymers. At the same time, a green and environmentally friendly 300000 tons/year caustic soda plant and 100000 tons/year methane chloride plant will be built as supporting facilities.
04
Jiangsu Chuangke New Materials Lithium Fluoride LiF and other product projects are publicly announced
Recently, Jiangsu Chuangke New Materials Co., Ltd. released public participation information on the environmental impact assessment of its annual production of 1000T battery grade lithium fluoride, 300T high-purity lithium fluoride, and 500T lithium phosphate projects. The project is located within the existing factory area of E1 plot in Yangzhou Chemical Industry Park, with a planned investment of 30 million yuan. After reaching production capacity, it can achieve an annual output of 1000 tons of battery grade lithium fluoride, 300 tons of high-purity lithium fluoride, and 500 tons of lithium phosphate.