Tuesday, May 29, 2012

Average Price of Anhydrous Hydrogen Fluoride Remains Low in China

Domestic average price of AHF was about USD1,253/t in April 2012, down 2.93% month on month. Actually, its price has been decreasing continuously for eleven months since June 2011 when its price was USD1851/t, according to CCM’s May Issue of China Fluoride Materials Monthly Report.

There was three reasons contributed to the price decrease. First, the price of fluorite, a key material of AHF, decreased after July 2011 and fluctuated from USD310/t to USD360/t during the end of 2011 till April 2012. Second, affected by the fatigued market of downstream products, especially the fluoride refrigerants and fluoropolymers, the demand and consumption of AHF declined after the second half of 2011. Third, domestic AHF witnessed oversupply currently, and thus manufacturers of AHF competed with each other intensely.
In a word, the previous boom of fluoride industry has been calm down. There was a policy, A notice about adopting comprehensive measures on the control over mining and production of refractory clay and fluoride, issued by General Office of the State Council on Jan. 2, 2010, restricting Chinese fluorite mining volume and causing speculation in fluoride industry which leads to price increase of all products. At the same time, great demand from domestic and oversea markets for fluoride products also brings about price increase. However, the previous boom of fluoride industry seems to have vanished. The prices of the main downstream products for AHF such as aluminum fluoride, R22(Difluorochloromethane), PTFE(Polytetrafluoro ethylene) and R134a(1,1,1,2-Tetrafluoroethane), remain low and some of their manufacturers were bearish on the market.

Forecast shows that if there is without any new supportive factors and merely depends on the weak demand of current market, the future price of AHF will not raise in the next two months.

The average price of fluorite was about USD343/t in April 2012, up 0.93% month on month.

The average price of HCFC-22 was about USD1,987/t in April 2012, down 6.45% month on month.

The sagging demand of HCFC-22, one of the largest consumption of AHF, affects the most on the price decrease of AHF. According to the seasonal peak demand of fluoride refrigerants, the price of HCFC-22 should have been raising after March 2012, but actually the price was decreasing. The unexpected price decrease makes fluoride refrigerant manufacturers reduce their production-operating rate and their raw material purchase of AHF. In conclusion, lower demand of HCFC-22 directly leads to the lower price of AHF.

The average price of HFC-134a was about USD6,905/t in April 2012, down 0.25% month on month.

The previous rebounded price of HFC-134a seems to be sagging again. The price of HFC-134a had a little increase from Dec. 2011 to March 2012, mainly due to the price increase of trichloroethylene, another raw material of HFC-134a, in the recent few months. However, the market of HFC-134a is still not so optimistic and thus will not help AHF price to recover.

The average price of PTFE dispersion resin was about USD19,607/t in April 2012, down 6.53% month on month.

Generally speaking, AHF lacks supportive factors for its price now, so its price will probably keep low in the next two months.

Source: China Fluoride Materials Monthly Report 1205

Main content of China Fluoride Materials Monthly Report 1205:
Yinyi Mining in the process of fluorite resources intergration
Hubei Xingfa to develop comprehensive utilization of phosphate ore
Sinochem Lantian expands its HFC-125 production capacity
Shanghai 3F and its subsidiary plan to purchase 70% share of Jiangsu Zhongrun
Dongyangguang Fluorine invests on HFC-32 and HFC-125 with 20,000t/a respectively
Lee & Man's 50,000t/a AHF production lines start to construct
Average price of anhydrous hydrogen fluoride remains low in China
Kureha to construct 5,000t/a PVDF production line in June 2012 
Meilan's application for HCFC-142b as raw material for 3,000t/a PVDF has been approved by FECO 
China realizes PCTFE large-scale production
BYD extends its lithium-ion battery industry chain toward upstream
Import and Export analysis of fluoride chemicals in China in March 2012

China Fluoride Materials Monthly Report, a monthly publication issued by CCM International on 20th of every month, covers the sectors on policy & legislation, company dynamic, supply & demand, price update, etc. of China’s fluoride material market. It will help you follow the dynamic throughout the whole value chain immediately.

About CCM International
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