Domestic price of HFC-134a drops sharply in May ~ July 2012

In July 2012, the price of HFC-134a sharply dropped to USD4,265/t, decreasing by 38.23% compared with that in April 2012, about USD6,905/t. Viewing the dismal market of HFC-134a, some domestic producers have suspended their production lines of HFC-134a. In July 2012, Jiangsu Jinxue Group Co., Ltd. and Zhejiang Juhua Co., Ltd. suspended their production lines of HFC-134a with capacity of 18,000t/a and 28,000t/a respectively, while Jiangsu Kangtai Fluorine Chemical Co., Ltd. also suspended its production line of HFC-134a with capacity of 30,000t/a on Aug. 5, 2012. The price decrease of HFC-134a was mainly influenced by the decreasing production cost and the weakened demand, according to CCM International’s August Issue of China Fluoride Materials Monthly Report.

First, the production cost of HFC-134a has been continuously reducing. Trichloroethylene (TCE) and anhydrous hydrofluoric acid (AHF) are the main raw materials of HFC-134a. From April 2012, the prices of both TCE and AHF kept falling. The price of TCE in July 2012 dropped to USD921/t, decreasing by 14.17% compared with that in April 2012, while the price of AHF has been continuously decreasing for thirteen months since June 2011, from USD1,851/t in June 2011 to USD1,145/t in July 2012.

Second, domestic demand of HFC-134a remained weak in July 2012 because its downstream consumption by automobile industry continuously declined. As the substitute of dichlorodifluoromethane (CFC-12), HFC-134a has become the most widely applied middle-to-low temperature environmentally friendly refrigerant mainly used in vehicle air conditioning. However, according to the statistics from the China Association of Automobile Manufacturers, the output and sales of automobile in June 2012 dropped by 2.37% and 1.66% respectively month on month. 

It is estimated that the price of HFC-134a will keep low in H2 2012. Firstly, the production cost of HFC-134a will remain low. Since the oversupply of TCE will continuously intensify, the price of TCE in China will keep falling in the future. Simultaneously, affected by the fatigued market of downstream products, especially fluoride refrigerants and fluoropolymers, the price of AHF will also keep low in H2 2012. Secondly, because of the gloomy market of automobile, the demand for HFC-134a will remain weak in H2 2012.

Source: China Fluoride Materials Monthly Report 1208

http://www.cnchemicals.com/Newsletter/NewsletterDetail_241.html

Main content of China Fluoride Materials Monthly Report 1208:

Sanming City vigorously develops fluorine chemical industry
Chinese fluoride enterprises to be affected by EU ban of CDM programs
Domestic price of HFC-134a drops sharply in May ~ July 2012
Do-fluoride does not perform well in H1 2012
Fuxin city creates a suitable investment environment to attract investors
COSCO Kansai's fluoro-carbon paint successfully apply on wind turbine blades
Shangdong Hongfeng's new-material project is going on smoothly
Thaihot Group increases capital of USD31.6 milliom to Sannong
New technology may lead to technological innovation of LiPF6 in China
Future price of LiPF6 to decrease in China
Liquid crystal chemicals may be profit growth point of Yongtai
Import and Export analysis of fluoride chemicals in China in June 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.

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