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2023
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The Extensive Growth of The Fluorochemical Industry Hides Potential Risks.
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Due to the accumulation of many structural problems during the long-term extensive development process, the current difficulties faced by China's fluorochemical industry are somewhat inevitable, and the financial crisis is merely a trigger. In the future, the growth rate of demand for fluorine products in China will still be much higher than the global average, and whether the fluorochemical industry can seize the opportunity to break free from the crisis.
Due to the accumulation of many structural problems during the long-term extensive development process, the current difficulties faced by China's fluorochemical industry are somewhat inevitable, and the financial crisis is merely a trigger. In the future, the growth rate of demand for fluorine products in China will still be far higher than the global average. Whether the fluorochemical industry can seize the opportunity to break free from the crisis depends on the timing of technological innovation, product upgrades, and structural adjustments. This was stated by Ji Gang, chairman of the China Fluorosilicone Organic Materials Industry Association, at the 2009 Fluorochemical Industry Chain Enterprises Crisis Response Forum organized by the association from August 21 to 22.
The industry development faces multiple challenges.
Zhang Fang, director of the Fine Chemicals Department of the Petroleum and Chemical Industry Planning Institute, stated that China is the world's largest producer and exporter of primary fluorochemical products, and also a major importer of deep-processed fluorochemical products, especially high-performance products. The impact of the financial crisis on China's economy is particularly evident in the export market. Due to the high export dependence of the fluorochemical industry, it has been affected to a certain extent, with the performance of leading products such as HF, F22, and PTFE being particularly prominent. Teng Mingguang, former general manager of Shanghai San Aifu Company, pointed out that from the end of last year to the beginning of this year, China's fluorochemical enterprises experienced unprecedented challenges: the break in the industrial chain and capital chain, product backlog, low operating rates, a significant decline in export volume, production stoppages, and increased inventory. Under the circumstances of reduced sales revenue and a sharp decline in profits, most enterprises are troubled by tight liquidity, insufficient domestic and foreign demand, and poor industrial chain linkage. In the first half of this year, the national economic policy has been favorable, with measures such as increasing export tax rebates and reducing temporary export tariffs for some fluorochemical products. The clean energy mechanism HFC-23 CDM project has also implemented tax rebates, leading to a gradual improvement in fluorochemical enterprises since May and June, with an increase in operating rates and product export volumes. However, overall, the prices of basic fluorine products have fallen to historical lows, and it will take time for fluorochemical enterprises to emerge from their difficulties.
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