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Fluorine refrigerant prices continue to rise, related company profits are expected to increase

Views:21     Author:Site Editor     Publish Time: 2020-12-25      Origin:Site

Fluorine refrigerant prices continue to rise, related company profits are expected to increase

Entering December, the market for fluorine refrigerants has risen sharply, with the price of R125 rising from 15,800 yuan/ton to 28,000 yuan/ton; R410a from 12,500 yuan/ton to 17,000 yuan/ton. "Rising refrigerant prices will help improve the profitability of the company's products." A number of listed companies said on the investor interaction platform.


It is reported that the sharp increase in the price of fluorine refrigerants since December is mainly caused by the increase in the price of upstream raw materials and the tight spot and the increase in downstream demand.


On the upstream side, the price of main raw materials has risen rapidly, and the cost side is supported by strong. According to industry insiders, the peak season for traditional refrigerant production is from December to May of the following year. Recently, the prices of the main raw materials of various fluorine refrigerants have risen rapidly. The price of perchloroethylene has increased by about 34% compared with the same period last month. The price of 8,300 yuan/ton in early November rose to nearly 9,200 yuan/ton.


Regarding the supply of fluorine refrigerants, some manufacturers’ installations have been overhauled, boosting the prices of some models of refrigerants to continue to rise. According to institutional monitoring, the current inventory of many types of fluorine refrigerant companies is at a low level, and the supply is tight. The refrigerant production companies mainly execute orders.


On the demand side, refrigerators, air conditioners, and automobile refrigerants are the terminal demand for various types of fluorine refrigerants. With the increase in downstream demand, export orders have rebounded, and the demand for refrigerants has increased significantly recently. In addition, the cold chain transportation of vaccines also brings about an increase in demand for refrigerants.


A-share related listed companies involving fluorine refrigerants include Juhua, Sanmei, Luxi Chemical, etc. Juhua is a leading domestic advanced manufacturing base for fluorine chemical and chlorinated new materials. According to the monitoring of Zhuochuang Information, the current R22 equipment of Juhua Co., Ltd. with an annual production capacity of 110,000 tons is operating normally, with about 80% of the load operating, and the quota is not much, and the price is rising; the R134a equipment with an annual production capacity of 60,000 tons is operating normally, with a load of about 70 to 80%. Stronger, actual transactions are mainly negotiated.


Juhua's refrigerant industry chain has a complete layout, with significant cost and supporting advantages. Against the backdrop of the downturn in the fluorine chemical cycle in the first three quarters of this year, the company expanded its output and operated steadily against the trend by tapping capacity, energy saving and emission reduction, cost reduction, and structural optimization. The company is located in the central area of fluorite resource enrichment in Zhejiang, Jiangxi and Anhui, close to Jiangxi pyrite resource intensive area, and it is convenient to purchase fluorite nearby. The company's industrial chain is complete and continues to extend to high-end development, with a high self-sufficiency rate of raw materials and can be transported through pipelines.


A few days ago, Sanmei, another leading fluorine refrigerant company, stated on the investor interaction platform that the price of some refrigerant products has risen recently. HFCs (hydrofluorocarbons) refrigerants are the company’s main products, and price increases are conducive to improving the profitability of the company’s products, but it is uncertain whether the price increase is sustainable.


The main products of Sanmei are fluorine refrigerants, fluorine blowing agents, and hydrogen fluoride. Previously, the company said in an investigation by institutional investors that the company has a capacity of 65,000 tons of HFC-134a, 52,000 tons of HFC-125, 40,000 tons of HFC-32, and 10,000 tons of HFC-143a. The company's 2020 refrigerant HCFC-22 quota is 11,800 tons and HCFC-142b quota is 25 thousand tons. Product sales cover all parts of the world, customers in more than 50 countries and regions, and have established good cooperative relations with American companies such as Dow, Arkema, Whirlpool, Formosa Plastics, LG, Morita, etc.


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