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.