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The fluorine chemical index is back up, ZhejiangJuHuaCo.,Ltd.s become the recommended heat of the agency.

Time:2018-01-22 15:13
The fluorine chemical index is back up, ZhejiangJuHuaCo.,Ltd.s become the recommended heat of the agency.

PPIcn October 11


  This year, the price of fluorine chemical products, represented by R22, has recovered, and the fluorine chemical industry has experienced a slight recovery after more than three years of downturn. Recently, dongxing securities visited the company and investigated the company's business situation and the development trend of fluorine chemical industry.  

  • viewpoint

  1. The upgrading of refrigerant products brings industry opportunities.

  Product upgrade to refrigerant industry brings vitality. According to the requirements of the Montreal protocol resolutions will need to be in China during 2013 hydrogen production and consumption of CFCS freeze on average between 2009 and 2010, 2015, freezing out the level of 10%, eliminated 35% in 2020, and 2025 out 67.5%, to 2030 as eliminated all manufacturing production and consumption. On September 15, China announced the closure of five production lines of HCFC(hydrochlorofluorocarbons). The move will eliminate more than 59,000 tonnes of HCFC production, or about 10 per cent of the country's total output. R22 as an important HCFC refrigerant, this year really entered the phase of elimination. Because of R22 and polytetrafluoroethylene (PTFE), the important raw material for new refrigerant R125, occupy the important position in the whole industry chain 臵. Therefore, the reduction of domestic R22 capacity makes some small enterprises out of the market, which is beneficial to the concentration of the fluorine chemical industry. It is understood that dongyue group R22 has a capacity of 200,000 tons, a large amount of R22 capacity is 100,000 tons, and the production capacity of R22 is 45,000 tons. These companies will benefit from the improvement of industry concentration.

  R22 has gained nearly 40% since the start of the year, and the current offer is about 14,000 yuan/ton. Due to the phasing out of R22, the demand for new refrigerants in the refrigerant market increased, resulting in the rise of R134a and other products. The recent R134a price is 18,800 yuan/ton, up 8% from the beginning of the year. From the perspective of industry, the future development direction of refrigerant is: low ODP(ozone depletion potential value) and low GWP(global warming potential value). When the second generation refrigerant is phased out, R134a, R125 and R410a will have a better market prospect. In the future, the demand for the fourth generation refrigerant market will continue to grow as the fourth-generation refrigerant market.

  2. The downstream demand of fluorine-containing materials is insufficient, and the future solution lies in the popularization of high-end products and downstream applications.

  The fluorine-containing material market still faces the problem of insufficient demand. The profit space of fluorine-containing materials is compressed due to the rising price of raw materials upstream. In the first half of this year, the gross profit margin of the fluoropolymer business was reduced to 3.5 percent, down about 12.6 percentage points from the same period last year. The gross profit rate of fluorine-containing fine chemicals was 19.9%, down 12.6% year on year. In the face of fierce market competition, the company's coping strategies include: increasing the proportion of high-end products and increasing the development of downstream products. In July this year, the company announced that it will invest in the construction of 23.5kt/a fluorine new material project and 10kt/a PVDF project. Fluorinated new materials include: hexafluoropropylene, perfluoroalkyl iodide, tetrafluoroethylene methyl ether, etc. Hexafluoropropylene is one of the three most important monomers in the synthesis of fluorinated polymer materials, which can be used to produce fluorine resin, fluorine rubber, flurane and other products, as well as the fourth generation refrigerant 1234-yf. The construction of new projects will effectively enhance the added value of the company's products and improve profitability.

  The company has built 28,000 tons of PVDC capacity, which is mainly used in food packaging and preservation. The 600-ton high molecular weight PTFE project has been tested, and the downstream applications include outdoor equipment, filtration and other fields. The company is actively cooperating with downstream manufacturers, hoping to strengthen the application of the above materials and open the consumer market. Dongxing securities believes that with the maturity of technology and the improvement of consumption level, the application of domestic fluorine materials will continue to grow, and the current situation of deficient demand for fluorine materials will be improved.

  3. Adjust the structure of subsidiaries and develop electronic chemicals business.

  In July this year, the company reorganized the company's kaisheng, which will separate the two parts of the company, and one is the non-hydrofluoric acid business, which will be incorporated into the parent company. Another piece of electronic chemicals business would be independent operation, mainly includes: electronic level of hydrofluoric acid, ammonium fluoride, buffer oxidation etching liquid (indicate) the electronic wet chemical products and construction project (including electronic level, electronic level, electronic grade sulfuric acid hydrochloride nitrate, etc). The restructured company will undertake electronic chemicals business. Through reorganization, it will bring into play the synergistic effect of kaisheng professional management and industrial chain, reduce management cost, improve asset operation efficiency and efficiency, and promote the development of electronic chemical business.

  Conclusion:

  Low fluorine chemical industry in the past three years, excess capacity and insufficient demand factors lead to the industry into loss, 1 quarter JuHua shares this year for the first time in years in mistreated, indicated that the establishment of the bottom of the fluorine chemical industry. Subsequently, R22 entered the price increase channel, R134a and other product prices have also recovered, and the profitability of refrigerant has recovered. The business community's fluorine chemical industry index rose from 630 to above 680. Although fluoropolymer and fluorine fine chemicals are still at the bottom of the price range, capacity utilization is still relatively low, but JuHua shares through the downstream application of continuous development and production of high-end products, make their competitiveness is enhanced. Estimated with excess capacity, low capacity of elimination, the boom of fluorine chemical industry is expected to be significantly increased from 2015, JuHua stake in industrial chain integrated ability is strong, large elasticity of performance, the PB only 1.58 times in 2014-2015 it is expected that the company EPS were 0.08 yuan, 0.16 yuan, for "strongly recommended" rating.