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Survey of Fluorine Industry in China


CCM has published a market research report covering the fluorine industry in China, with focus on the market trends of fluorite, anhydrous hydrogen fluoride (AHF), HFC-152a, and HCHC-142b. The report gives industry players in China’s fluorine industry a guideline of the current market development and also points out the future trend. This information is inevitable for a sustainable decision making in China’s market to be ahead of competitors.

The Chinese fluorine industry, in fact, has been one of the fastest developing and at the same time most promising chemical industries in the country. As a fact, China has become one of the largest fluorine production and consumption areas worldwide. The industry can roughly be divided into four different segments, containing inorganic fluoride, fluor-refrigerant, fluor polymer and fluor-intermediate.

According to CCM’s research, China’s high fluorine production is supported by the highest proven fluorite reserves on the globe. In 2016, it had recoverable fluorite reserves of about 40 million tonnes. China remains the largest fluorite producer with 4.2 million tonnes of output in 2016, accounting for more than 65% of global total. Most of China's fluorite deposits are associated fluorite deposits, and the monomineral-fluorite deposits are relatively scarce. It is obvious that the available resources are limited.

The Chinese government has paid much attention to environmental protection since the second half of 2016. In terms of the production safety risk and environmental pollution problems in the fluorine industry, China conducted a frequent regulatory investigation. The fluorite mining industry was impacted the most. Many small and medium-size fluorite enterprises were shut down. The overall operating rate of the fluorite industry enjoyed restrictions and progress of the industry consolidation have been accelerated.

Fluorine chemical products with the characteristics of chemical resistance, a good resistance of high-low temperature, ageing resistance, low friction, and excellent insulation, are widely applied in many fields.  

China's fluorine chemical can date back to the 1950s. With abundant fluorite reserves, China has formed a large-scale industry structure after the development in the past 60 years. There are four important sectors for China's fluorine chemical industry, namely inorganic fluoride, refrigerants, Fluor-intermediate, and Fluor polymer. 

In the 21st century, before the financial crisis, the output value of China's fluorine chemical maintained an average annual growth of 20% to 30% and the growth rate is far higher than the global average rate. After the financial crisis, the average annual growth rate of the output value of China's fluorine decreased slightly. Overall, China has become one of the largest fluorine chemical production and consumption regions.

According to CCM’s analysis, the costs and requirements to enter the industries of fluorite and hydrofluoric acid in China will change significantly in the future, and the industry concentration will continue to improve. Furthermore, the production and exports of these two main fluorine products will change alongside and more attention are inclined to pay to hydrofluoric acid's high-value downstream industries.

Looking at the Fluorhydrochemicals HFCs and HCFCs, the industry structure in China will be restructured according to the environmental obligations by the Montreal Protocol and especially the Kigali Amendment. As a result, domestic manufacturers need to accelerate their existing capacity optimization and increase their investment in new environmental friendly alternatives, such as HFOs, which will become a key point in the later development.

It is foreseeable that other refrigerants will continuously erode the market share of HFCs and HCFCs in the coming years.

About the Report
CCM’s new report Survey of Florine Industry in China can be accessed directly from the website after purchasing. You can also check out CCM’s entire market research on China’s fluorine market in the Online Database.

CCM is China’s leading market intelligence provider for the fields of agriculture, chemicals, food and feed. Get in contact with our team by send an email to econtact@cnchemicals.com or call directly on 86-20-37616606

 


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