Wednesday, January 23, 2013

Domestic price of R134a to remain stable in Dec. 2012

In Nov. 2012, the price of 1,1,1,2-tetrafluoroethane (R134a) reached USD4,019/t, remaining stable month on month and up by 5.04% compared with that in Sept. 2012, about USD3,826 (the lowest price this year). The price increase of R134a since Sept. 2012 was mainly influenced by the increasing production cost and improving demand from automobile industry, according to CCM’s December Issue of China Fluoride Materials Monthly Report.
First, the production cost of R134a has been continuously increasing. Trichloroethylene (TCE) and anhydrous hydrofluoric acid (AHF) are the main raw materials of R134a. From Oct. 2012, both the prices of TCE and AHF kept increasing. The price of TCE in Nov. 2012 reached USD900/t, increasing by 10.17% compared with that in Sept. 2012. On the other hand, the price of AHF has also been continuously increasing from Oct. 2012 and reached USD1,119/t in Nov. 2012, increasing by 7.11% compared with that in Sept. 2012.

Second, domestic demand for R134a from automobile industry continuously increased. As the substitute of dichlorodifluoromethane (R12), HFC-134a has become the most widely applied middle to low-temperature refrigerant with environment friendliness, mainly used in vehicle air conditioning. According to the statistics from China Association of Automobile Manufacturers (CAAM), the output and sales of automobile in Nov. 2012 increased by 10.99% and 11.52% respectively month on month.

It is estimated that the price of R134a will remain stable in Dec. 2012.
Firstly, the production cost of R134a will keep stable. Influenced by the declining price of liquid chlorine, the main raw material of TEC, the price of TEC will drop in Dec. 2012. However, thanks to the price increase of fluorite (the raw material of AHF production), the price of AHF will keep advancing.
Secondly, the demand for R134a from automobile industry will keep stable. According to the CAAM, Dec. is the traditional sales peak of private cars in China, so the sales of automobile in Dec. 2012 will keep upward. However, the working days in Dec. 2012 is less than those of last month, thus it's estimated that the output of automobile will keep stable in Dec. 2012.
Source: China Fluoride Materials Monthly Report 1212

Main content of China Fluoride Materials Monthly Report 1212:
Domestic fluorite price keeps rising in Nov. 2012
Domestic price of R134a to remain stable in Dec. 2012
China's industrial and commercial refrigeration industry becomes first to phase out HCFCs
Ratio of substandard canned refrigerants of automobile in Guangdong area reaches 12.5% in Q3 2012
Befar Group plans to construct R125 production line with capacity of 11,000t/a
OCI Materials to further entrench its worldwide dominance in NF3 supply
Domestic price of AlF3 rises in Nov. 2012
3F Wanhao to construct 20,000t/a F142b production line
Domestic price of PTFE tends to be weak in Dec. 2012
Jiangsu Guotai intends to construct 300t/a LiPF6 production project
Mingxi County to be one of industrial bases of domestic fluorine fine chemical in 2015
Import and Export analysis of fluoride chemicals in China in October 2012

China Fluoride Materials Monthly Report, a monthly publication issued by CCM 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.

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CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit

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