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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 gained better cost-performance in recent years. Additionally, the clean development mechanism and carbon trading have brought significant profits to fluoride production companies, further boosting China's fluorine chemical market. At the 7th China-Japan Fluorine Chemical Industry Symposium held in Chengdu on September 10, it was reported that while the market is expanding rapidly, the industry is showing signs of over-investment. Experts suggest that it's time to implement total volume control and optimize product structure.
China’s fluorine chemical industry benefits from abundant fluorite resources, a favorable investment environment, vast market potential, and relatively low manufacturing costs. The sector is growing at an annual rate of 15% to 20%, placing China among the world’s top four fluorine-producing and consuming 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 surpassing 600,000 tons and exports reaching 124,000 tons. HCFC-22 production capacity exceeds 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 over 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 capacity of 4,500 tons and output of 1,500 tons. Inorganic fluoride production capacity is about 500,000 tons, with output exceeding 350,000 tons and exports over 10 million tons. ODS substitute production capacity is nearly 400,000 tons, with output over 301,000 tons. Fluorinated fine chemicals have a production capacity of nearly 100,000 tons and output over 60,000 tons.
Experts predict that in the coming years, chlorofluorocarbon (CFC) products will enter a decline phase, while their substitutes will see strong market demand. With rising demand for air conditioners, refrigerators, and cars in China, competition among related industries will intensify. This growth creates a large market for fluorine-based alternatives. In the fluoropolymer field, competition for PTFE will grow, while demand for fluororubber will rise with the expansion of the auto industry. Fluorine coatings are expected to grow alongside the construction and chemical sectors. The market for fluorinated fine chemicals is anticipated to be very large, with continuous development driven by technological advancements.
Ji Gang, chairman of the Fluorosilicon Industry Association, noted that current production of fluorinated chemicals meets domestic demand, but there is serious overcapacity in general-purpose products, leading to declining profitability. High-end products remain 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. He emphasized that the interests of a few companies should not undermine the overall health of the industry.