Summary: The production of domestic
fluorochemical enterprises were affected by the 2019-nCoV. The future market of
fluorochemicals will depend on the resumption of upstream and downstream
manufacturers of the industrial chain.
At present, most domestic fluorochemical
enterprises maintained low operating rates or kept suspending production due to
the latest 2019 novel coronavirus (2019-nCoV). In terms of upstream industries,
fluorite production in some regions decreased as fluorite mines and flotation
devices were suspended. The overall operating rate of the industry was low as
most enterprises said that they were still suspending production for
maintenance and that they would not offer quotations currently. Operating rates
of anhydrous hydrofluoric acid (AHF) dropped to below 50% during the Spring
Festival (late Feb. 2020). Most AHF manufacturers said that the current
supplies were tight and that they faced transportation difficulties under the
influence of the 2019-nCoV. As a result, AHF prices only edged up slightly
after the Chinese New Year. Mainstream prices of AHF in different regions were
shown as below:
l Fujian Province: USD1,371.86/t–USD1,516.27/t (RMB9,500/t–RMB10,500/t);
l Shandong Province: USD1,444.06/t–USD1,516.27/t (RMB10,000/t–RMB10,500/t);
l Jiangxi Province: USD1,444.06/t–USD1,588.47/t (RMB10,000/t–RMB11,000/t);
l Inner Mongolia Autonomous Region:USD1,371.86/t–USD1,516.27/t (RMB9,500/t–RMB10,500/t).
With respect to downstream refrigerant
market, prices of mainstream refrigerants remained stable. Demands for
refrigerants scarcely changed as most terminal air-condition manufacturers
suspended production and automobile industry delayed resumption. They are
predicted to resume production after 10 Feb., 2020. The average operating rates
of polytetrafluoroethylene (PTFE) producers hit around 40%–50% due to the extended holiday and restricted transportation. PTFE
demands and prices hardly increased as most PTFE manufacturers postponed
resumption after Feb. 10.
By 10 Feb., 2020, new confirmed cases of
2019-nCoV reached 381 except in Hubei Province and this number had declined for
seven consecutive days. Enterprises in different provinces started resuming
production since Feb. 10. Production of downstream fluorochemical enterprises
will recover and demands for upstream raw materials will grow if the infectious
disease is kept under controlled in the near future. Supplies of raw materials
were tight owing to the current low operating rates, so prices of raw materials
are likely to edge up. However, supplies and demands are also predicted to drop
if fewer downstream enterprises resume production as expected.
More updates of coronavirus impact on fluorochemical in CCM Fluoride Materials China E-News. Email emarket1@cnchemicals.com to know more.