PTFE prices soar under low inventories 11-03-2021

Summary: The overall price of PTFE showed a clear upward trend under inadequate inventories as the operating rates were at medium and low levels. PTFE prices are predicted to continue to climb in Oct. 2021.

On 30 Sept., 2021, polytetrafluoroethylene (PTFE) surged by nearly USD1,547.89/t (RMB10,000/t). PTFE manufacturers maintained low operating rates in Sept. and thus inventories were at a low level. They were unwilling to sell their products as prices of raw materials also went up. Especially in mid-to-late Sept., operating rates of the industry dropped further. Specifically, Zhejiang Juhua Co., Ltd. (Zhejiang Juhua) maintained operating rates at around 20%–30%; Jiangsu Meilan Chemical Co., Ltd. (Jiangsu Meilan) suspended production; the operating rates of Shandong Hua Fluorochemical Co., Ltd. and Zhonghao Chenguang Research Institute of Chemical Industry Co., Ltd. (Zhonghao Chenguang) hit around 70%. Despite the jumping prices, there was still rigid market demand and some deals were seen; downstream customers took wait-and-see attitudes about procurement and transaction prices mainly mounted up.

 

In terms of demand, end users still had rigid demand for PTFE but downstream enterprises became cautious about purchasing facing increasing production costs caused by rising PTFE prices. For traders, their products stocked up on in earlier stage sold well but fewer transactions were made in mid-to-late Sept.

 

With respect to raw materials, prices of anhydrous hydrogen fluoride (AHF) mainly edged up in Sept. and supply was tight in early Sept.; AHF prices mainly fluctuated between USD1,532.41/t (RMB9,900/t) and USD1,563.37/t (RMB10,100/t) within the month. Prices of domestic trichloromethane picked up significantly in mid-to-late Sept.; the current trichloromethane prices slipped slightly but were still at a relatively high level above USD619.16/t (RMB4,000/t). Prices of raw material, difluorochloromethane (R22) reached USD2,012.26/t–USD2,089.65/t (RMB13,000/t–RMB13,500/t) in Sept.; prices of R22 orders are forecast to hit USD2,940.99/t–USD3,095.78/t (RMB19,000/t–RMB20,000/t) in Oct.

 

The overall market price of PTFE is anticipated to continue to ascend in Oct. 2021 for the following two reasons:

  • Supply—Operating rates of manufacturers are at medium and low levels at present and the time for them to raise operating rates is uncertain. Manufacturers are unwilling to sell their products owing to inadequate inventories.

  • Raw material—AHF prices show an upward trend; trichloromethane prices mainly display a consolidation trend at a high level; prices off new R22 orders are likely to inch up. Downstream customers are cautious about replenishment and rigid market demand is expected to maintain stability while showing a tendency to improve.

Source:CCM


You can find out more information about this article at CCM China Fluoride Materials Monthly Newsletter.



About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.

 
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