CCM International Ltd. published its report recently, Fluorine Industry Survey in China (edition1). CCM researched on the situation of fluorine industry during the past five years including the supply and price trend of fluorite, introduction of China's fluorine industrial chain and hot point of market research, key factors to influence fluorine industry, four branch productions and application of fluorine industrial chain, main producers of fluorite and fluoride, technique route for synthesis of organic fluoride intermediates and fluor polymer, and the prediction of fluorine industry in the future five years.
According to this report, the fluorine industry is hailed as 'The Gold Industry' in China; it is a China's strategic industry and has been listed as a special plan in Twelfth Five Years Plan. Fluorine chemical industry has been considered as one of the fastest developing and most promising chemical industries in China, and China had become one of the largest fluorine chemical production and consumption areas. Inorganic fluorides, refrigerant, organic-intermediates and fluor polymer are 4 main important sectors for China's fluorine chemical industry.
The research shows the basic reserve of fluorite in China occupies 23.4% in the global basic reserve of fluorite, but retained reserve occupies less than 10% in the global retained reserve. At the same time, although Chinese government had adopted a series of policies to control over-exploitation of fluorite resource, the output of fluorite still kept a fast increase in the past ten years, and the compounded annual growth rate (CAGR) is 3.4%.The output of fluorite in China occupied nearly 60% in the global output, which means China's fluorite resource has been a situation of over-exploitation. Meanwhile, the price of China's fluorite is still lower then that in other countries. Although China holds the resource, it has just got little bargaining right internationally.
Four branches of fluorine industrial chain are surveyed in emphasis in this report. China's inorganic fluoride productions are focused on foundation products as hydrogen fluoride, aluminum fluoride, cryolite, potassium fluoride, sodium fluoride, ammonium fluoride, and ammonium bifluoride, etc. Their output and export are very large. But fine inorganic fluoride develops very slowly. For example, the import dependence of electronic hydrogen fluoride is still very large. There were about more thanthirtyfluorine refrigerant producers in China in 2010, and the total capacity could reach to 1,000,000 tonnes, but R22 was still the most popular refrigerant in China, and it occupied 60% in China's refrigerant market in 2010. Meanwhile, the development on succedaneum of ODS is still backward, and self patented products are less.
Chinais one of the largest organic-fluorides producers and exporters in the world. There are 4 series of organic-fluorides which have been developed and produced in China. They are fluorobenzene series, benzyl fluorides series, heterocyclic series and aliphatic series. The output of fluorobenzene series and benzyl fluorides series is the largest, and their types are more complete, but there are few self-developed products in China's organic-fluorides intermediate recently. Meanwhile, in these few years, the capacity of fluor resin and fluor rubber grew rapidly, and the compounded annual growth rate (CAGR) were 28.08% and 24.64% respeticely. However, the operating rate of fluor resin was low as just 47.5% in 2009, and it had faced with the problem of over capacity. According to this report, thepolymerization technique of fluor resin has reached the global level, but the application technique is still weak, which means the primary fluor resin is over capacity, while the applicative fluor resin still needs to be imported. The performance of fluor rubber in China is as good as that in the developed countries. But in the field of mixing rubber and applications, China still has a large gap compared with the developed areas of fluorine industry.
CCM' researcher Xu Shaohong indicates that the fluorine industry in China is in situation of 'large but not strong'. The export volume of fluorite was still very large in the past ten years, while most of fluorine chemicals foundation products were over capacity and at a high rate on exportation, and they became another losing in fluorite resource. Moreover, the long term low profit and high pollution make China’s fluorine industry face a big problem again. Chinese government had been adopting a series of policies to protect the fluorite resource and promote the development of this industry from 2010. According to a general survey of the whole industrial chain, the main problem of the whole fluorine industry is the lag in technology. To touch this 'stone' and turn it into 'gold', and express the superiority of China's fluorite resource in order to make fluorine industry as the real gold industry, the key of it is the improvement and innovation in each branch of industrial chain.
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