China formally starts to integrate fluorite resources, which will benefit the
export control of fluorite, improve the efficiency of fluorite utilization and
promote the development of high value-added fluorine chemicals. However, it
will encounter resistance from the enterprises to be eliminated
and the local governments, according
to CCM’s July Issue of
China Fluoride
Materials Monthly Report.
On June 25, 2012, the Ministry of Industry
and Information Technology of the People's Republic of China
promulgated the List of the First Batch of Fluorite Production Lines Which Meet
the Standard for Fluorite Industry Admittance. According to this list, ten
companies' fluorite production lines have been approved to meet the Standard
for Fluorite Industry Admittance. It means that China formally carries out
integration work of fluorite resources and it will gradually promulgate more
lists, while more and more fluorite producers which do not meet the Standard
for Fluorite Industry Admittance will be eliminated or integrated in the
future.
The integration of fluorite resource will
benefit the export control of fluorite, the efficiency of fluorite utilization
and the development of high value-added downstream fluorine chemical products.
As the main raw material in fluorine chemical
industry, fluorite is an important strategic resource. But in the 1990s, the
fluorite resource did not arouse adequate attention from the Chinese government
and the export volume of fluorite was over 1 million tonnes per year. Moreover,
affected by the illegal exploitation, the price of fluorite is extremely low
and the environment is polluted and damaged greatly. Such cases about illegal
exploitation have been constantly revealed.
Although the Chinese government has adopted a
series of measures, such as decreasing export quota, increasing export tariff
and setting up exploitation quota, to
protect the fluorite resources since 1999, there were still huge amounts of
fluorite exported oversea. From 1999 to 2011, China totally exported about 10.5
million tonnes of fluorite. At the same time, China totally exported about 1.1
million tonnes of HF, equivalent to 4.4 million tonnes of fluorite, since one
tonne of HF consumes four tonnes of fluorite. It means that China totally
exported about 14.9 million tonnes of fluorite directly and indirectly from
1999 to 2011, averagely 1.15 million tonnes per year.
Simultaneously, Chinese fluorite producers
are mostly minor enterprises which lag in technologies, production equipment
and production management currently. In addition, since there are numerous minor enterprises, it is not easy for the
Chinese government to supervise the exploitation of fluorite, which leads to
the emergence of illegal exploitation from time to time.
Nowadays, through the integration of fluorite
resources, China
will eliminate the backward production lines of fluorite and the fluorite
resources will be integrated to some preponderant enterprises, which is
propitious to control the fluorite export and to improve the utilization
efficiency of fluorite.
Apart from this, the integration of the fluorite
resources will benefit the preponderant enterprises to develop high value-added
fluorine chemical products, raising the international competitiveness of
domestic fluorine chemical enterprises and realizing the transformation and
upgrading of fluorine chemical industry. It's foreseeable that there will be
some leading enterprises with international competitiveness in China in the
future.
However, the integration of fluorite
resources will inevitably encounter resistance. The integration involves the
deadline problem of fluorite mining right and cross-regional integration, so
it's necessary to balance the interests of enterprises to be eliminated and
local governments.
In fact, the resistance has emerged. The
Standard for Fluorite Industry Admittance has been put into practice since
March 1, 2010. It has regulated that the disposal ability of every single ore
selection line must be at least 100t/d and the enterprises with mining capacity
of 30,000t/a are required to build the corresponding selection plants. What's
more, plants that fail to meet the criteria must be suspended after July 1,
2011. But after the Standard for Fluorite Industry Admittance was promulgated,
there had been no action until May 2012 when the evaluation for fluorite
industry admittance have just started to be carried out, and the List of the
First Batch of Fluorite Production Lines Which Meet the Standard for Fluorite
Industry Admittance hasn't been issued until June 25, 2012.
Apparently, along with the progress of
integration, more and more resistance from enterprises to be eliminated and
local governments will emerge in the future.
Source: China Fluoride Materials Monthly
Report 1207
Main content of China Fluoride Materials Monthly
Report 1207:
China witnesses uptrend of fluorite ore and downtrend of
fluorite powder in H1 2012
China formally carries out integration of fluorite resources
Domestic
price of HCFC-22 decreases a lot in June 2012
Development
strategy of AHF enterprises in China
Tianye
Tolian obtains reparations from Yinyi Mining
Domestic
price of aluminum fluoride maintains a decreasing trend
Do-Fluorite
purchases 73% share of Baiyin Zhongtian
PFA to
witness better development in China
The
consumption situation of three grades of PTFE resin in China
LiPF6
industry in China
to grow explosively in 12th Five-year Plan period
Domestic
demand of LiPF6 to expand due to a new policy to promote energy-savingand
new-energy vehicles
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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