Oil energy crisis provides opportunities for the fluorine chemical industry

The fluorine chemical industry does not use petroleum and natural gas as its main raw material, and its correlation with oil prices is not significant. However, analysts believe that the increasing global energy resources provide huge space for the development of fluorosilicon materials. Fluorine products are new materials for high-performance chemicals, and their production technologies are complex. The overall price is higher than that of oil and natural gas. As the price of petroleum products rises, the price gap between the two is gradually shrinking, which provides a vast space for the development of fluorine materials for the market.
At present, the total global fluoropolymer production capacity is approximately 220,000 tons/year, and China's production capacity is approximately 40,000 tons/year, accounting for 18% of the world's total production capacity. It has become the world's second largest fluoropolymer producer. Ye Zhixiang, chairman of Zhejiang Juhua Group, believes that with the strengthening of economic strength and the improvement of people's living standards, China's demand for fluorine products will grow much faster than the global average. In the next 10 years, the global demand for fluoropolymers will still maintain the same growth rate, and the average global demand for fluorine products will increase by more than 3%. It is expected that during the "11th Five-Year Plan" period, China's fluoropolymer production capacity can maintain an annual growth rate of 15%, and the production capacity in 2010 will reach 70,000 tons/year, and the total output will be close to 50,000 tons/year.
From the perspective of various types of fluorine products, the entry of chlorofluorocarbons into the recession period will result in the emergence of a broad market for alternatives. As fluoropolymers enter the mature stage, competition for the main product, PTFE, will intensify; With the development of China's auto industry, there will be a significant increase in fluoroelastomers; fluorinated coatings will grow with the growth of construction and chemical industries; and fluorine-containing fine chemicals have the most extensive development space. At present, the gross profit margin of domestic CFC substitutes and CFC products is maintained at a level of over 20%. For fluoroelastomers, FEP, and even fluorine fine chemicals, market demand is strong and competition is weak. Will maintain more than 30% higher gross profit levels in the next 3 years.

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