China Fluoride Materials Monthly Report
In March 2016, Gree noted the re-entry into Suning marts. In consideration of the said "40 million air conditioners in stock", the domestic air conditioner industry is facing huge shipment pressure. For this, the deficient procurement of raw materials, and the accelerated upgrading for environmental protection, will together restrict the traditional fluorine-enriched refrigerant business, according to analyst CCM.
In March 2016, China's HFC-32 price stayed low, indicating that the coming peak period for air conditioner has not yet brought significant drives. CCM believes that this is mainly because the market was suppressed by overcapacity. The HFC-32 segment is in urgent need of supply-side reform.
In March 2016, Haisifu Chemical announced the plan to step into fluorine-enriched electronic chemicals segment. In view of its affiliation to Capchem, a Shenzhen based leading Li-ion battery electrolyte producer, CCM believes that LiPF6 will be one of its key targets.
In March 2016, HEC released its full-year 2015 financial report. In addition, it announced to vigorously expand its fluorochemical business and develop new materials business. CCM believes that this will be favourable for the company to achieve business expansion and give full play to its advantage in chlor alkali chemical resources, which will then enable it to better face challenges such as sluggish economic environment and fiercer homogenisation competition.
In 2015, Befar achieved rise in its profit. However, its vital battlefield, the chlor-alkali market is seeing slowdown growth. In light of its announcement to launch fine fluorochemical projects in Feb. 2016, CCM believes that the company aims to make a transformation into fine fluorochemicals business, and seize the market opportunities brought by the emerging downstream industries, so as to improve its financial performance.
In March 2016, Green New Materials signed the strategic cooperation agreement with CGNSEDC. This will be favourable for the former to develop solar energy backplane membrane business in size and in strength in the foreign/domestic solar energy power generation segment, and meanwhile for the latter to integrate the supply of upstream key materials for better business layout.
In March 2016, Hubei Hongyuan decided to install new LiPF6 production equipment. This is mainly because the company, whose current capacity layout has fallen behind other competitors, intends to seize the explosively growing Li-ion battery market and improve the economic effect, according to analyst CCM.
At the end of Feb., 2016, Do-Fluoride made a pre-announcement about its full-year 2015 financial performance. Specifically, its net profit achieved a sharp rise, by 845.26% YoY, thanks to its alternative energy business.
In Feb. 2016, China's fluorite market was sluggish overall, especially the fluorite powder (CaF2>97%) segment throughout which production suspension appeared. As the downstream market recovers, CCM believes that the fluorite market will stay stable and make a rebound in Q2.
In Feb. 2016, China's fluorine-enriched refrigerant market still stayed sluggish. Impacted by the poor demand, CCM believes that the market will stay weak throughout the first quarter.