China Fluoride Materials Monthly Report

To encourage phosphate fertilizer manufacturers to attach importance to environmental protection and recycle fluorine resource, domestic governments and industry associations have promulgated some encouraging policies and industry programs in recent years, such as Clean Production Technology Promotion Program in Phosphate Fertilizer Industry, Guided Catalogue for Industrial Structure Adjustment (2011), the 12th Five-Year-Plan of Chemical and Mining Industry(2011-2015), etc. On May 2, 2012, Hubei Xingfa signed an Investment Service Intention Agreement on the Comprehensive Utilization Project of Fluorine and Iodine Resources Associated with Phosphate Ore with Wengfu Group, so as to jointly develop the comprehensive utilization of phosphate ore.

With the elimination of HFC-22, there will be more and more domestic and international enterprises to invest in the construction of environmentally friendly refrigerants, which will drive up the demand for HFC-125 and HFC-32 worldwide. In recent years, more and more domestic enterprises have planned to start or expand the production of HFC-125 and HFC-32. For example, Sinochem Lantian Co., Ltd. started to construct an HFC-125 production line with capacity of 20,000t/a at the end of 2011. In Jan. 2011, Guangdong Dongyangguang Aluminum Co., Ltd., an aluminum processing enterprise in Guangdong Province, planned to establish a subsidiary to produce HFC-125 and HFC-32.

In addition, influenced by the depression of economy, the market situation of fluorine chemical downstream industries was still dismal in April and most of the prices of fluorine chemicals maintained downward tendency.