There is no doubt that fluorine industry has been one of the fastest developing and most promising chemical industries in China and China is the second largest economic entity in the world. Thus, fluorine chemicals, such as inorganic fluoride, refrigerant, fluor-polymer and fluor-intermediate four main sectors are absolutely worth investigating.
After ten-year development, with the appreciated policies implemented, China has formed a complete industrial chain, from fluorite supply to each sector in downstream. However, most China's production of fluorine chemicals concentrates in primary products so far, and there are a high proportion of these primary products for export.
Central Government adopts a series of policies to protect the fluorite resources and upgrade the industry structure. For example, exploitation quota has been set up since 2010 and it is predicted that the quota will be generally reduced in the coming five years. Moreover, fluorine chemical industry has been listed as a sub-plan in the 12th Five-Year Plan. A series of polices in restriction of fluorite and hydrogen fluoride production has been put forward and integration of fluorite resources forcefully becomes the hot point after 2010.
Domestic demand for fluorine products is estimated to keep increasing steadily in the coming five years, which is considered to be the most important driven factor to China's fluorine chemical industry. So it is crucial to find out the consumption situation in China.
In order to have a comprehensive understanding of fluorine industry, lots of investigation has been made. To inorganic fluoride, a widely investigation is made and not only traditional products, but also lithium hexafluorophosphate which is fast developed in the past two years, is further investigated. To fluor-refrigerant, HCFC-22, HFC-134a and HFC-410A are deeply surveyed and some valuable analysis has been done. To fluor-polymer, both resin and rubber are researched. To fluor-intermediate, major synthesis routes are investigated and some exclusive opinions are raised. To sum up, in detail, analysis and forecast about each sector of fluorine industry in China are presented in this report.
In 2012, China was the largest holder of proven reserves of fluorite, with about xxxx million tonnes of proven reserves of fluorite, and the third largest technical reserves of fluorite in the world. China's fluorite reserves are concentrated in those regions-Hunan, Inner Mongolia, Zhejiang, Jiangxi and Fujian. From 2001 to 2012, the output of fluorite in China has witnessed gradual increase with CAGR of xxxx%.
In order to protect fluorite resources, the central government has formulated exploitation quota of xxxx million tonnes in 2011. The exploitation quota will be executed in a few years and resources will further concentrate in some state-owned enterprises. Along with the policies of fluorite resource protection and integration, the price of fluorite has soared up to USDxxxx/t at the peak in xxxx and will not come back to the price (about USDxxxx/t) before xxxx any more.
Fluorine chemical industry has been one of the fastest developing and most promising chemical industries in China. China has become one of the largest fluorine chemical production and consumption areas. There are four important sectors for China's fluorine chemical industry, including inorganic fluorides, fluor-refrigerant, fluor polymer and fluor-intermediates.
China is the largest producer of hydrogen fluoride in the world. There are more than xxxx hydrogen fluoride manufacturers in China, the capacity of which was about xxxxt/a in 2012. With the xxxxt/a capacity of aluminum fluoride and xxxxt/a capacity of cryolite, China is the largest producer of aluminum fluoride and cryolite. Production of lithium hexafluorophosphate has developed fast in the past two years and its capacity has reached xxxxt/a in 2012. China's capacity of potassium fluoride was xxxxt/a, sodium fluoride was xxxxt/a. However, most inorganic fluoride producers are under the double pressure from both upstream and downstream industries, and it is estimated that they will be integrated into either fluorite companies or fluor-refrigerant companies gradually.
There were about xxxx fluor-refrigerant manufacturers with a total capacity of more than xxxx million tonnes in China in 2012. At present, the main fluor-refrigerants in China are HCFC-22, HFC-134a, HFC-32, HFC-125 and HFC-410A. With the capacity of xxxxt/a and the output of xxxx tonnes in 2012, HCFC-22 is still the largest refrigerant in China. However, because of the elimination of HCFCs according to Montreal Protocol, the output of HCFC-22 is restricted and its consumption proportion is generally decreasing. It is predicted that the demand of HFC-410A, which is the major substitute for HCFC-22, would increase fast in the coming five years.
Within fluor resin, PTFE is the principal product in China and the next are FEP and PVDF. The capacity of PTFE increased from xxxxt/a in 2006 to xxxxt/a in 2012, with CAGR of xxxx%, and the output of PTFE was xxxx tonnes in 2012. Most of PTFE produced in China belongs to primary resin, while high-end products are still manipulated by foreign companies.
The capacity of fluor rubber grew from xxxxt/a in 2006 to xxxxt/a in 2012 and the CAGR is xxxx%. The output of fluor rubber grew from xxxx tonnes in 2006 to xxxx tonnes in 2012 and the CAGR was xxxx%. The main products are fluor rubber 26 and fluor rubber 246. The technique in primary fluor rubber is mature in China, while the technique both in mixing and processing is rather poor, which has restricted the consumption of fluor rubber in China.
However, under the encouragement of the government in developing new materials, fluor polymer is estimated to have fast progress in the coming five years, especially the development in high-end products.
China is one of the largest fluor-intermediate producers and exporters in the world, thanks to its powerful industry foundation, both in fluoride industry and petroleum industry. There are four series of fluor-intermediates in China. They are fluorobenzene series, benzyl fluoride series, heterocyclic series and aliphatic series. Most production of fluor-intermediates concentrates in fluorobenzene series and benzyl fluoride series, and most of them are primary products that are produced in a large scale. And there are about four main technology routes to synthesize fluor-intermediate in China. They are diazotization, halogen exchange, direct fluorination and new group substitution in fluoride. The technology routes of diazotization and halogen exchange are the main technology routes for most Chinese producers. Some domestic producers are able to provide customized service and customized service market is estimated to have great progress in the coming five years.
XX Commercial in Confidence.