The fluoroplastics industry has always been regarded as a strategic emerging industry, but it is currently facing a huge crisis of structural overcapacity. However, the emergence of the crisis did not reduce the enthusiasm for the development of the fluoroplastics industry in various places. After all kinds of funds poured into this hot land, it was found that there was not gold everywhere, and the production capacity of the fluoroplastics industry was obviously surplus.

If the fluoroplastics industry wants to achieve a magnificent turn and become a real new chemical material industry, it must retreat from the quagmire of serious surplus of bulk basic products, take up the sharp weapon of technological innovation, and open up the high-end market.

Fluoroplastic material is an important new chemical material, which is widely used in military industry, aerospace, petrochemical industry, machinery, construction, electronic information, electric power and electrical appliances, automobile, textile, medicine, agriculture, environmental protection, food and new energy and strategic emerging industries and other industrial and high-tech fields, and has become an indispensable and irreplaceable important new material.

Since the "Eleventh Five-Year Plan", the production capacity of major fluorine chemical products has maintained a rapid growth rate of more than double digits. The output of hydrofluoric acid, aluminum fluoride, polytetrafluoroethylene, hydrochlorofluorocarbons (HCFC), and hydrofluorocarbons (HFC) products has ranked first in the world, and the overall scale of fluorine chemical industry has expanded rapidly. As of 2012, the total production capacity of fluorine chemical products has exceeded 5 million tons/year, with an output of more than 3.5 million tons, accounting for 45% to 50% of the global total output, and sales accounting for about 30%.

Fluorine chemical products are mainly divided into inorganic fluoride, fluorinated alkanes and ODS substitutes, fluoropolymers, fluorine-containing fine chemicals and other four categories. Since the 21st century, the prosperity of the fluorine chemical industry has continued to rise, driving the industry as a whole into a stage of rapid development.

In recent years, the low-level repeated construction of fluoroplastics industry is serious, and the production capacity has been obviously surplus. The capacity expansion of the fluoroplastics industry is mostly concentrated in basic products and general products, and will be released after 2010. In addition, due to the weak international economic recovery and the slowdown of domestic economic growth, the market demand power is insufficient, and the overall supply exceeds demand. Product prices have fallen sharply, and the economic benefits of fluoroplastics recycling companies have declined.

First, the performance of inorganic fluoride, fluorinated alkanes and ODS substitutes in fluorine chemical industry is more obvious. In 2012, the average opening rate of hydrofluoric acid plant was less than 60%, aluminum fluoride was about 40%, and the product price was about 50% lower than the 2011 high, mostly at a loss. However, fluorinated alkanes and ODS substitutes all showed varying degrees of oversupply. The average price in the first half of 2013 fell by more than 70% from the 2011 high, making it difficult for enterprises to operate. However, the enthusiasm for investment continues unabated. According to the currently announced scale of projects under construction and planned, aluminum fluoride, new refrigerants (HFC134a, HFC-32, HFC-125), etc., can meet global demand by 2015 and there is still a surplus. The market for fluoropolymer PTFE, PVDF, FKM (Type 26) and other products is relatively good, and companies still have a certain profit space, but the production capacity of general products is growing strongly, and supply will soon be oversupply, and the entire industry will face overcapacity.

Two is the recovery of fluorine plastic methyl monomer, silane coupling agent market serious oversupply.Recycling fluoroplasticsSince the newly-built units were put into operation in the second half of 2010, the product prices have continued to decline, and the fluorine plastic recycling enterprises are in a state of loss, and the market is seriously oversupply. Affected by the market downturn, the speed of capacity expansion has slowed down, but the scale is still expanding. According to statistics, the current production capacity under construction is 600000 tons/year, and the proposed construction is 1.8 million tons/year. It is estimated that the domestic production capacity will exceed 3 million tons/year by 2015, while the domestic demand is about 2 million tons. Since the 11th Five-Year Plan, the production capacity of silane coupling agent has increased rapidly at an average annual rate of 30%, which is significantly higher than the demand growth rate. In 2012, the average operating rate of the plant was about 55%, while there are still more than 200000 tons/year of projects under construction and the production technology is relatively backward, which will further aggravate the contradiction between supply and demand in the market.

In addition, the product structure of fluoroplastics industry is unreasonable. Fluoroplastic chemical products in China are mainly medium and low grade, medium and high-end products mainly rely on imports, product structural contradictions are prominent, low-end surplus, high-end shortage. In addition, according to the international implementation agreement, China will speed up the phase-out of hydrochlorofluorocarbons (HCFC) and persistent organic pollutants, greenhouse effect (GWP) and other issues of international concern such as environmental protection and climate warming, which will bring serious impact and great challenges to the recycled fluoroplastics industry, which accounts for a large proportion of China's fluorine chemical industry.

The research group believes that the fluorine chemical industry is a structural overcapacity, which is manifested as a surplus of basic and general products, while the high-end products are insufficient. The main reason for the recycling of fluoroplastics is that the supply of raw materials exceeds demand. It is expected that with the rapid growth of demand for downstream silicone rubber, silicone oil and other products, this phase of overcapacity will be effectively alleviated.

This article comes from:www.tflpfa.com

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