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China's fluorine chemical industry has a strong growth
With the steady increase in global crude oil prices, non-oil and gas pipeline fluorinated industrial products have increasingly demonstrated better cost performance in recent years. Additionally, the clean development mechanism and carbon emissions trading have brought significant profits to fluoride production companies, contributing to the rapid growth of China's fluorine chemical market. During the 7th China-Japan Fluorine Chemical Industry Symposium held in Chengdu on September 10th, it was reported that while the market is expanding quickly, the industry is also showing signs of overheated investment. In response to this trend, experts suggest that the industry needs to implement total volume control and optimize product structure.
China's fluorine chemical industry benefits from abundant fluorite resources, a favorable investment environment, a large domestic market, and relatively low production costs. The sector is growing at an annual rate of 15% to 20%, placing China among the world’s top four fluorine production and consumption regions, alongside the U.S., Japan, and the EU.
According to the latest data from the China Fluorine-Silicon Organic Materials Industry Association, China's hydrofluoric acid production capacity exceeds 700,000 tons, with output over 600,000 tons and exports reaching 124,000 tons. HCFC-22 production capacity surpasses 500,000 tons, with output around 401,000 tons and exports of 123,000 tons. PTFE production capacity stands at 48,000 tons, with output of 31,200 tons and exports exceeding 10,000 tons. Fluororubber production capacity is 4,500 tons, with output of 2,669 tons and exports of 900 tons. Melted fluororesin has a production capacity of 4,500 tons and output of 1,500 tons. Inorganic fluoride production capacity is approximately 500,000 tons, with output over 350,000 tons and exports exceeding 10 million tons. ODS substitute production capacity reaches nearly 400,000 tons, with output over 301,000 tons. Fluorinated fine chemicals have a production capacity of nearly 100,000 tons, with output over 60,000 tons.
Experts predict that in the coming years, the Chinese fluorine industry will see a decline in chlorofluorocarbon (CFC) products, while their substitutes will gain more market share. As demand for air conditioners, refrigerators, and automobiles continues to rise, related industries will face increased competition. This growth provides a promising market for fluorine-based alternatives. In the fluoropolymer sector, competition for PTFE, the main product, will intensify, while demand for fluororubber is expected to grow with the expansion of the automotive industry. Fluorine coatings will also see growth as construction and chemical industries develop. The market for fluorinated fine chemicals is expected to be vast, with continuous innovation driving the development of follow-up products.
Ji Gang, chairman of the Fluorosilicon Industry Association, noted that China's current fluorine chemical production meets domestic demand, but there is serious overcapacity in general-purpose products, leading to declining profitability. High-end products are largely imported, creating a significant domestic gap. He suggested that the government should guide policies to reduce the export of basic fluorochemicals and encourage the export of high-value products like fluoropolymers, ensuring that the interests of a few companies do not undermine the overall health of the industry.