Monday, February 27, 2012

China Restricts Inorganic Fluoride Development by Rising Entry Criteria

China's government raised the entry criteria to guide the development of inorganic fluoride industry, according to CCM’s January Issue of China Fluoride Materials Monthly Report.

On February 14th, 2011, the Ministry of Industry and Information Technology of the P.R.C. (MIIT) promulgated the Entry Criteria for Hydrogen Fluoride (HF) Industry (the Entry Criteria) which aims to restrict the blind expansion of HF.

The Entry Criteria sets up regulations in industry distribution, scale, technology& equipment, energy saving and comprehensive utilization of resources, environmental protection, product quality, etc.

According to the Entry Criteria, in principle, it is not allowed to set up new plant or expand the existing scale, except the development and production of specialty high grade products for high purity and ultra-clean electronics industry and the raw material for the utilization of enterprises themselves. Regarding to the new plants, the production capacity shall not be less than 50,000t/a and the single set device capacity shall not be less than 20,000t/a.

Besides, the new plants must have matching devices for waste treatment.

Regarding to energy saving and comprehensive utilization of resources, it requests that in producing one tonne of HF, fluorite (CaF2>97%) shall be no more than 2.25 tonnes; integrated water consumption shall not exceed one tonne; the average annual overall energy consumption of coal shall not be more than 450 kg. Meanwhile, HF production enterprises shall develop circular economy, improving the comprehensive utilization of energy, echelon fluorite and fluorine gypsum slag. The content of calcium sulfate in gypsum slag containing fluoride shall not be less than 90%, with the calcium fluoride content of no more than 2%, and the sulfuric acid content shall not exceed 0.5%, with the comprehensive utilization rate of over 90% (including commission processing and utilization of long-term contracts). The existing manufacturers which can not meet these requirements must be shut down.

Moreover, the Entry Criteria also regulates that fluorite enterprises can not sell fluorite to the HF producers which can not meet the Entry Criteria. Meanwhile, the HF producers can not purchase fluorite from the fluorite enterprises which can not meet the Entry Criteria for Fluorite which came into effective in Mar. 2010.

Apart from the Entry Criteria, the Guided Catalogue for Industrial Structure Adjustment (2011)(Guidance Catalog), which was promulgated by the National Development and Reform Commission (NDRC) in March 2011, also restricts the development of inorganic fluoride chemicals, including HF and AlF3.

According to the Guidance Catalog, new HF plant and AlF3 production lines with single line production capacity of lower than 20,000t/a are restricted. And HF and AlF3 with the production capacity of lower than 5,000t/a shall be shut down.

China is the biggest producer of HF in the world. There are about 50 HF manufacturers in China. Among these producers, 40 have the production capacity of over 10,000t/a, and 10 have capacity of over 30,000t/a. The total domestic capacity of hydrogen fluoride is about 1,253,000t/a in 2010.

Source: China Fluoride Materials Monthly Report 1201

Main content of China Fluoride Materials Monthly Report 1201:
Fluorite resource attracts more investment
China continues to revoke export quota system for fluorite ore in 2012
Phosphorus-fluorine integrated industry to benefit fluorine industry
China to completely eliminate HCFCs by 2030
Shanghai 3F benefits from capacity expansion and price raising
China's global market share for AlF3 shrinks in 2010-2011
China restricts inorganic fluoride development by rising entry criteria
India extends anti-dumping duty on China's PTFE for five years
China's fluoropolymer industry attracts more foreign investment
Zhejiang Juhua to extend fluoride product portfolio
Fluoride fine chemical production booming in Fuxin, Liaoning
LiPF6 production to boom in China
China still a net exporter of fluoride chemicals
Prices of fluoride materials drop in November

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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