The hottest raw materials soar fluorocarbon paint

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Where will the fluorocarbon coating market go with the soaring raw materials

where will the fluorocarbon coating market go with the sharp rise of raw materials

April 14, 2021

since the second half of 2020, fluorine-containing raw materials have gradually come to the forefront, and the market, which has been relatively stable, has also become popular with other chemical products, with a great potential to catch up from behind, and the lack of quantity and high price has become the main situation of the current market, and has become more and more intense with the passage of time. This article briefly tells you the context of this story

1. The price of fluorine-containing raw materials soared

fluorine-containing coatings, injection molded parts, lithium batteries, fluorine-containing photovoltaic backboards, water treatment membranes, etc. all use PVDF fluorine-containing resins, fluorine-containing resins use fluorine-containing particles, and fluorine-containing particles use hydrochlorofluorocarbons (HCFCs), which is the source of the price rise

in 1991, the Chinese government signed the Montreal Protocol and made a commitment to phase out the production and consumption of hydrochlorofluorocarbons (HCFCs). Since then, it has been vigorously advocating and implementing the orderly exit plan to phase out HCFCs. According to the agreement, based on the production and consumption in 2013, China needs to phase out 35% of the production and consumption of HCFCs in 2020 and 2030, which is also an important part of the Chinese government's commitment to carbon neutrality. Among many varieties of HCFCs, R22, R141b and R142b are three very important sub varieties. R22 is an important raw material of fluoropolymer PTFE (polytetrafluoroethylene), and R142b is an important raw material source of PVDF (polyvinylidene fluoride)

due to the importance of the above three varieties in the industrial field, they cannot be withdrawn quickly and completely in the short term. Therefore, the domestic policy implements quota production for the HCFC raw materials used in the above three varieties. The production construction, scale, product destination and use are strictly supervised by the state. Once the supply-demand relationship changes, it is easy to cause a shortage of raw materials in the market

the commitment to eliminate 35% in 2020 makes the end of 2020 the first turning point for the implementation of the policy, and also the window period for the price changes of various varieties of HCFCs. According to the survey, the ex factory price of R142b has increased from 15500 yuan/ton in October 2020 to 38000 yuan/ton at present, an increase of 145%! And it is impossible to estimate what price it will rise in the future

Figure 1 R142b price trend chart from October 2020 to March 2021, and R142b price has been stable until October 2020

Figure 2 The price trend of R142b in the past three years cannot be isolated from the trust of the majority of users in us. Figure 1 and Figure 2 show that the price of R142b has broken through the historical high of 30000 yuan/ton in recent three months, reaching 38000 yuan/ton. Some foreign trade orders and even bismuth iodide oxide can remain stable in the air for 197 days, reaching 42000 yuan/ton, This is the result of extreme tension between supply and demand of R142b due to the commitment to eliminate 35% in 2020

2. The price of fluorine-containing resin has risen

the extremely tight supply-demand relationship of HCFCs has caused the price to rise, and at the same time, it has also driven the price of fluorine-containing resin, its downstream product, to rise. For example, PVDF resin produced by R142b

Figure 3 Schematic diagram of PVDF resin industry chain structure

according to the current production level of PVDF resin, PVDF resin is produced from R142b, and its unit consumption ratio is about 1 0, i.e. about 1 0 part of R142b can synthesize 1 part of PVDF resin, so the price of R142b accounts for a very important proportion in the cost of PVDF resin

therefore, the sharp rise in the price of R142b material since October 2020 will inevitably be transmitted to the price of PVDF resin in various application fields in the midstream. At present, the overall price of PVDF resin has increased by more than 40% compared with last October

3. The downstream demand intensifies, and the price of fluororesin rises

fluororesin is widely used. Take PVDF resin as an example, the upstream raw material is R142b, and the downstream applications include fluorocarbon weather resistant coating, photovoltaic backplane film, lithium battery, oil pipe, chemical anti-corrosion parts, water treatment film, etc., as shown in figure 3 above. Among the downstream applications of PVDF resin, weather resistant coating accounts for the largest proportion, followed by injection molding and lithium batteries. Many enterprises from Chinese Mainland and Taiwan also participated in the exhibition, and the proportion of PVDF resin used is not large

Figure 4 The market distribution map of PVDF resin application field

it should be emphasized that among the major uses of PVDF resin, has the lithium battery market share increased significantly from less than 10% two years ago to 19.90%, and with the great development of new energy vehicles, the proportion will become larger and larger, and will soon rank first in all major uses! This is because in the past two years, the development of new energy vehicles has been strongly encouraged worldwide, and PVDF resin has been proved to be one of the indispensable key materials in power vehicle batteries and 3C electronic products batteries

just take China as an example. According to the national 14th five year plan, the development speed of new energy vehicles will increase four times by 2025! The demand for PVDF resin is as high as 50000 tons! At present, the total capacity of all domestic PVDF resin manufacturers is not 50000 tons! Due to the rapid development of global new energy vehicles, the consumption of PVDF resin by lithium batteries has increased sharply. Global lithium battery giants Ningde times, BYD, Panasonic, LG, etc. have seized the production capacity of PVDF resin all over the world, resulting in a tight supply of PVDF resin in all industries. The production expansion cycle of PVDF resin is about 3 years, which seriously lags behind the growth rate of lithium battery demand

in addition, due to the extremely high requirements for safety and stability in the automotive field, the price tolerance of PVDF resin in the battery field is high, which leads to the price of PVDF resin for battery is much higher than that in photovoltaic, coating, chemical anti-corrosion parts and other fields. Under the above background, PVDF resin manufacturers have adjusted their existing production capacity to the field of lithium batteries as much as possible, which has caused a serious shortage of existing PVDF resins in other fields

4. Fluorocarbon resin is in short supply and high price. Where will the price and supply of fluorocarbon coatings go

with the soaring price of fluororesin, all enterprises producing PVDF coatings are facing huge cost pressure and the shortage of fluororesin supply. The greater the original consumption, the greater the pressure of enterprises, and the greater the determination of price transmission to the downstream! Downstream customers should be prepared for price increases or even stock shortages, because all enterprises must give priority to ensuring their strategic customers when encountering such difficulties. Perhaps in the near future, downstream enterprises using fluorocarbon coatings will rush for goods, and small pieces of samples will be tested by bench test; Finally, as far as the display is concerned, everyone should make full preparations for psychological and resource allocation

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