Depth-adjusting market competition in 2014

With the growing economic development and fierce market competition, under the background of global energy conservation and low-carbon environmental protection, the natural refrigeration industry should focus on the development of energy-saving and environmentally-friendly products, study modern refrigeration technologies, and open up new development prospects. However, there are many uncertainties in the refrigerant market environment in China, and challenges and opportunities coexist.

2013 is not a relaxing year for the refrigerant industry. From the perspective of the refrigerant industry, overcapacity and shrinking hcfc quotas will certainly bring changes to the market trend. It is expected that 2014 will be a year full of difficulties and challenges.

From the perspective of the international market, the US anti-dumping and countervailing investigations in December 2013 undoubtedly worsened the downturn in the refrigerant industry, and severely curbed the export of refrigerants to the US market. Although the two anti-surveys will be made before and after January 15, 2014 and March 31, 2014, the impact on the refrigerant market has begun to show. About 50% of China's r134a is exported to Europe and the United States, of which the United States has a relatively large share. Therefore, once the United States has established its "double counter-insurgency," domestic companies will suffer a greater negative impact.

Judging from the domestic market, China's economy has entered a transitional transition period. The fluorine chemical industry is still in a sluggish state. When it gets warmer, it is unclear. Most people think that the low period will be extended and the market will still be in an adjustment stage.

From the perspective of industry development, the Montreal Protocol requires the elimination of traditional refrigerants, and the elimination of r22 will leave a huge market space. It is expected that the demand for hfcs products and their mixed working substances will increase significantly in the future, and it is expected to usher in greater opportunities for development.

The upstream raw materials continue to be controlled, and the supply and demand changes have risen. Fluorite is an important raw material for organic fluorine chemicals. The large fluctuations in the price of fluorite in recent years are related to factors such as the outbreak of short-term downstream demand and speculation, and are related to the large policy environment and the country’s gradual tightening of the development of fluorite mines.

According to the national policy orientation, it is expected that the annual quota for domestic fluorite mining will be maintained at around 10 million tons in the future, equivalent to about 4 million tons of fluorite powder. At present, the annual domestic demand for fluorite powder is 408 million tons. Since 2013, China has cancelled 15% of the original export tariff for fluorite. In 2014, exports still have no tariffs, and hydrofluoric acid has been reduced from 15% to 10%. Obviously, the cancellation of export tariffs and the supply of fluorspar mining quotas will inevitably bring about an increase in demand and prices.

Nowadays, environmental protection new refrigerants are becoming the future trend of market development. At present domestic air-conditioning companies have laid out environmentally-friendly refrigerants, and there are already 18 R290 air-conditioning production lines undergoing transformation. Some companies believe that the new environmental refrigerant is the general direction of the future, but the price will be higher and it will still need market verification.

In general, the recovery and start-up cycle of the overall downstream demand for refrigerants in 2014 will depend more on whether there are more policy support and adjustments at home and abroad. In particular, the fluorine chemical industry will remain in a difficult period of industrial restructuring in 2014. Whether the market can pick up needs to be observed.

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