Fluorine-enriched Filter Material will Enter a New Development Period In China

Date: 2015-08-09

“At the end of March 2015, the Chinese listed fluorochemical enterprises released their 2014 full-year financial reports in succession. In order to clearly show the status quo and future development of the domestic fluorochemical industry, CCM conducted systematic analysis on 4 leading enterprises to determine the general direction of the industry.

In early March 2015, China’s Ministry of Land and Resources and Ministry of Finance jointly created an investigation team to evaluate the fluorite comprehensive utilization pilot base in Wuyi County, Zhejiang Province. In late March, Wuyi government also emphasized the acceleration of the pilot base construction in the 2015 Key Work Planning. The further progress in the fluorite comprehensive utilization project will better leverage and protect the fluorite resources.

In April 2015, Do-Fluoride released its Q1 financial report, in which both revenue and net profit recorded YoY rises. Specifically, the Li-ion battery business based on its LiPF6 technology made the largest contribution. This indicated that Do-Fluoride has made achievement from its transformation and upgrading and has gradually stepped out of the depression caused by the traditional fluoride salt market.

In April 2015, Haier Group officially released its R290 room air conditioner for the first time at the China Refrigeration 2015. This conveys that the sales of R290 air conditioners in domestic market will be initiated, marking a milestone for the substitution and upgrading in the refrigeration and air conditioning industry. However, the application technology has yet to be widespread and scaled. In the next a few years, the technology for fluorine-enriched refrigerant will still play a central role in the room air conditioner segment.

At the end of March, 2015, the MIIT announced that Made in China 2025 would be officially published. Earlier at the beginning of March, the MIIT also launched the yearly exclusive campaign to consolidate the industrial foundation. All of these efforts aimed at accelerating industrialized transformation and upgrading. Specifically, PTFE new material received extra attention in the campaign to consolidate the industrial foundation, which would present a new opportunity for Chinese fluoropolymer enterprises. 

In mid-April 2015, the State Council officially released the Action Plan for Prevention and Treatment of Water Pollution. As a major material for water treatment, the fluorine-enriched filter material will enter a new development period.

In mid-April 2015, Quzhou Hi-Tech Industrial Development Zone was officially identified as a state-level one, namely Quzhou National Hi-Tech Industrial Development Zone, which was then inaugurated by stakeholders from all-level government departments. This will create more favorable conditions for Juhua Group, a leading enterprise in the pillar fluorochemical industry of the zone.

In mid-April 2015, CNITECH announced that the progress was made in the R&D of new fluorine-enriched binder for Li-ion battery and the industrialized application was proceeding. This marks an opportunity for fluoropolymer enterprises to join in the emerging new material industry. Meanwhile, the achievement will help related enterprises to improve the performance of Li-ion batteries and boost the industry development.

In March 2015, Chinese AHF (99.95%) market made a rebound, along with slight upturn in price. This is mainly because the supply & demand relation took a better turn. In Q2, it will continue the recovery.

In March 2015, Chinese PTFE market continued the recovery, with up-going price. This can be attributed to bettered balance between supply and demand and the increased price of raw material. It is predicted that in Q2, the PTFE market will continue the upturn, however to be stable in May or June.

In April 2015, Chinese fluorochemical industry began to rebound with favorable conditions.

Accordingly, the refrigeration segment gradually entered the peak period for production and sales. Leading enterprises such as Shandong Dongyue and Jiangsu Meilan took the lead to up-regulate the R22 price. This also facilitated the upturns in the markets of upstream raw materials and downstream products: ex-works prices of AHF (99.95%) and PTFE recorded rises. 

Meanwhile, the Chinese government continued issuing favorable policies, in a move to promote the progressive recovery in the fluorochemical industry. Specifically:

The MIIT initiated the 2015 Implementation Plan on the Special Campaign to Consolidate Industrial Foundation, from which PTFE fiber and filter materials will receive uttermost support.

The State Council officially released the Action Plan for Prevention and Treatment of Water Pollution, which will be beneficial to the development of fluorine-enriched filter materials, the major application materials in the water treatment industry, including PVDF hollow fiber membrane, PTFE water treatment membrane and ECTFE water treatment membrane.

In addition, at the end of April, the MOF issued the export tariff exemption policy for some products. Of this, the export tariff of HF will be decreased from 10% to zero. To be officially implemented from 1 May, 2015, this policy hopefully will stimulate the HF exports and contribute to the recovery of the fluorochemical industry. Early in February, China signed the FTA with South Korea, which also boosts export opportunities for the industry.

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