This chemical product may benefit from continuous price increase

Since late November, the price of hydrofluoric acid has continued to rise, up nearly 5%, and it is believed that it will continue to rise in the future. The prices of fluorite and hydrofluoric acid are expected to continue to rise by the end of the year. As a result, the national environmental protection supervision is stricter, the fluorite operation rate has declined, and some domestic mines and flotation units have been shut down, which has reduced the spot supply of fluorite in the field and tightened the fluorite supply in the market. In addition, the fluorite industry continued to rectify, enterprises such as illegal production accelerated to withdraw, the industry's effective capacity scale continued to decline under strict supervision, and the low temperature in winter led to the shutdown of enterprises in the north. Southwest Securities believed that the imbalance of supply support fluorite prices is expected to reopen the rising channel. As of December 2, the average price of fluorite in China was 2883.33 CNY/ton. The price trend of fluorite in China rose slightly. The insiders expect that the price of fluorite will continue to rise in the future. The largest downstream of fluorite is hydrofluoric acid and other fluorine chemical industries, accounting for 71%.

The continuous high level of fluorite has a great impact on its price. Influenced by the high price of fluorite and tight supply, the price of Hydrofluoric Acid has also shown signs of recovery in the near future. As of December 2, the average price of domestic hydrofluoric acid market is 10500 CNY/ton. Recently, the domestic hydrofluoric acid market continues to rise. The mainstream of hydrofluoric acid negotiation in Fujian is 9500 yuan-10500 CNY/ton, in Shandong is 10000 yuan-11000 CNY/ton, in Jiangxi is 9500 yuan-10500 CNY/ton, and in Inner Mongolia is 9500 yuan-10500 CNY/ton. According to the data of the business agency, the price of hydrofluoric acid showed a rapid recovery trend after the end of late November. At present, the price has risen to the level in early October, up nearly 5% compared with the low in November. In-depth study on the logic of the price rise of hydrofluoric acid, on the one hand, the cost is too high due to the continuous high operation of upstream fluorite price, on the other hand, the current automobile industry has entered the stock cycle, which makes the downstream refrigerant market market of the fluorochemical industry slightly increase, the domestic R22 supply is tight, and the domestic refrigerant R22 market price has increased. At present, the refrigerant market is mainly dominated by the second and third generation refrigerants. Third generation refrigerants benefit from the coming of the benchmark year. In order to compete for more quotas in the future market, leading manufacturers have expanded their production. Although the quota of second generation refrigerants will be greatly reduced next year, the capacity of R22 as a raw material of PTFE is still expanding. According to the calculation of Kaiyuan securities, the demand for acid grade fluorite powder corresponding to the new refrigerant capacity is about 745000 tons, and fluorite and Fluorine chemical industry will continue to boom. The fluorine chemical industry sector is expected to benefit from the development of Fluorite Mining, fluoride salt production and downstream refrigerants.

The gold stone resource is the leader of domestic fluorite industry, and the largest enterprise with resource reserves, mining and production processing scale in domestic fluorite industry. The main products include lithium hexafluorophosphate, lithium fluoride, aluminum fluoride and other fluorinated salts, which are also the most important source of income and profit for the company. In September 2019, doflor plans to acquire 70% of the equity of Luoyang Lanbao Fluorine Industry Co., Ltd. with RMB 77 million. Luoyang lanbao is a leading Fluorite Mining and beneficiation enterprise in China. It has three fluorite beneficiation plants and six mines in Luoyang, Chongqing and other places. The reserves of fluorite are about 3 million tons and the processing capacity of flotation fluorite powder is 60000 tons / year. Sanaifu is the largest fluorine chemical research and development base in China, with the most complete fluorine chemical industry chain in China. The company's products include R22, R32, R125 and other refrigerants.