Fluoride workers enter the early stage of recovery

Through the recent investigation of the fluorine chemical industry, it is determined that with the depth adjustment of nearly three years, the industry has entered an early stage of recovery. Recently, the entire industry chain began to increase its prices from R22 to methane chloride, of which R22 and **** both hit new highs since 2013. From the demand side, R22's commercialization and non-refrigerant demand increase. Although R22 is a restricted-type refrigerant, it is still a key raw material for the new refrigerant R410A in the mainstream market. According to the information, it is a trend to commercialize R22 in the future, but the market size of the entire refrigerant based on R22 will not shrink. From the upstream of the industrial chain, the supply of methane chloride from the upstream raw materials shrinks. The main reason is that the start-up load of the silicone matching device is difficult to increase, and the cost of tetrachlorine treatment is increased. In 2014Q1, some installations in the eastern region were overhauled. We judge that methane chloride is still in the contraction and price recovery phase.

Of the domestic R22 capacity, about 700,000 tons of supervised large plants, and about 100,000 tons of small-scale plant installations. We believe that the demand for refrigerants can maintain over 350,000 tons. With the expansion of the polymer market, it is expected that a demand of about 200,000 tons will be generated. If small companies can be strictly supervised, it is expected that the fluorine chemical industry will gradually recover.

Among the listed companies, Juhua's fluorinated industrial chain is the most complete, and Aifu has the largest cooperation with international giant DuPont. We believe that the industry is in an early stage of recovery. San Aifu lost its main business in 2013, and its giant fluorochemical business has a meagre profit. Several large companies have greater profitability improvement in 2014.