IOL Fluorochemical Weekly Report: Basic raw materials oversold, rebound, popular refrigerants still expected to rise

One week market
Refrigerant: Basic raw materials oversold and rebound, popular refrigerants have expected to rise
This week, the supply and demand balance and price stability of mainstream refrigerant products in the market have been maintained. Market characteristics during the week: Supply side refrigerant factories schedule production in an orderly manner based on inventory and orders, and there is no internal competition in the market. Due to the downstream air conditioning industry entering a production off-season, the demand for refrigerants in the pre-sales market has decreased month on month in the domestic sales market; But the demand for foreign trade exports benefits from the expansion and stocking of overseas air conditioning factories, with actual demand steadily increasing. Against the backdrop of high prices and strong market conditions, factories that consume quotas quickly have a stronger reluctance to sell, which may become a new demand in the market in the second half of the year. In summary, due to the relatively stable demand for air conditioning, automobiles, and direct exports in the main application industries, the refrigerant market has a strong supply-demand balance and resilience. As the end of the month approaches, the sentiment of price increases is spreading, and it is highly likely that popular products will continue to experience strong price increases, while weak products will remain stable.

Fluorinated polymers: cost support strengthens, supply and demand remain weak
This week, the fluoropolymer market remained weak and under pressure, with fierce competition in factory shipments and fluctuating prices of mainstream products at the bottom. Market characteristics of the week: Supply side: Top enterprises have supply chain advantages, product quality advantages, and scale advantages, maintaining high load production based on orders and inventory, and increasing parking time for enterprises with single products. On the cost side, there is an expected increase in the prices of basic raw materials such as fluorite and hydrogen fluoride, which significantly strengthens the cost support for downstream products, but is not enough to form a strong rebound support. Demand side: The trend of diversified demand growth is clear, but the growth of new energy fields such as lithium batteries, photovoltaics, and semiconductors is slow and falls short of expectations; The growth of short-term orders in existing markets is faster than that in emerging markets. The application of fluorine materials in emerging fields such as hydrogen energy, biomedicine, 5G communication, environmental protection and energy conservation, and aerospace will continue to steadily grow in the future. Recently, the application of PEEK material in robots has received high attention in the industry; Popular products of liquid cooled servers, such as fluorinated liquids, perfluoropolyethers, and hydrofluoroethers, have attracted industry attention and become a possible new direction for industry expansion.

This Week
01
Announcement of Fluorinated Cooling Liquid and Semiconductor Fluorinated Polymer Project in Qifu New Materials Data Center
At the beginning of 2025, the Investment Promotion Bureau of Zibo City released key planning projects for the new materials industry in 2025, including the fluorine-containing coolant for data centers and fluorine-containing polymers for semiconductors project of Shandong Qifu New Materials Co., Ltd. The total investment of the project is 500 million yuan, and it is planned to build 2000 tons/year of hexafluoropropylene dimer, 2000 tons/year of perfluorohexane, 2000 tons/year of hexafluoropropylene trimer, 3000 tons/year of peroxide vulcanized fluororubber (Phase I 1500 tons/year), and 3000 tons/year of modified polytetrafluoroethylene (Phase I 1500 tons/year). The company's second phase project plans to invest 102 million yuan, with a core product of 3000 tons/year fluororubber, which is an important sealing material; 6000 tons/year fluorinated heat exchange fluid is a heat exchange medium used in AI and data centers, with broad market prospects.
02
Juhua Corporation's net profit attributable to shareholders in the first half of the year was 2.051 billion yuan, a year-on-year increase of 146.97%
On the evening of August 27th, Juhua Corporation released its semi annual report for 2025, achieving a revenue of 13.331 billion yuan, a year-on-year increase of 10.36%; The net profit attributable to shareholders of the listed company was 2.051 billion yuan, a year-on-year increase of 146.97%. During the reporting period, the company's main performance drivers included production and sales volume, product prices, raw material prices, etc. The main reason for the significant increase in performance is the sustained recovery in the price of the company's core product fluorine refrigerant, as well as the stable growth in production and sales of the company's main products, which has led to an increase in gross profit and profitability of the main business.
03
Completion and acceptance of the 4000 tons/year TFE downstream high-end fine product technical renovation project by JuSheng Fluorochemical
On August 22nd, Zhejiang Jusheng Fluorochemical Co., Ltd. announced the completion and environmental protection acceptance of the 4000 tons/year TFE downstream high-end fine product technical renovation project. The project has an investment of 71.5724 million yuan. Based on the existing 400t/a production facilities for tetrafluoropropanol (TFP) and tetrafluoroethyl methyl ether (HFE-254), a new 800t/a tetrafluoroethyl methyl ether (HFE-254), 400t/a tetrafluoroethyl tetrafluoropropyl ether (D2), 1500t/a tetrafluoroethyl trifluoropropyl ether (D3), and 500t/a tetrafluoroethyl octafluoropentyl ether (D4) will be retrofitted to produce 400t/a tetrafluoropropanol (TFP) and 450t/a octafluoropentyl ether (N2) in a flexible manner. The project was completed in May 2024 and began debugging and production in August 2024.
04
Environmental Impact Assessment Announcement for Zhongxin Fluorine Material Annual Production of 6500 Tons of Fluorine Fine Chemicals Renovation Project
On August 27th, the Ecology and Environment Bureau of Sanming City announced the environmental impact assessment of the annual production of 6500 tons of fluorine fine chemicals renovation project of Fujian Zhongxin Fluoromaterial Gaobao Technology Co., Ltd. The project plans to add 2000 tons/year of ortho fluorotoluene, 1500 tons/year of para fluorotoluene, and 500 tons/year of meta fluorotoluene2000 tons/year of m-fluorotrifluorotoluene and 50 tons/year of o-fluorotrifluorotoluene, with by-products including 589 tons/year of hydrofluoric acid, 22130 tons/year of fluorogypsum, 4173 tons/year of sodium sulfate, etc.