LONDON, April 13, 2016 /PRNewswire/ -- In H1 Feb., 2016, China's fluorochemical market was flat. However in H2 after the Spring Festival, each industry gradually resumed production and replenished stock, reactivating the market – a rebound is starting!
The domestic fluorochemical enterprises are dedicated to the supply chain extension and business upgrading, to make breakthroughs in their financial performance.
Juhua Group signed the strategic cooperation agreement framework about new material business with Kecheng government (in Quzhou City, Zhejiang Province)
Jinhua Yonghe launched a technological reconstruction project for high performance fluorine-enriched materials
Inner Mongolia Yonghe planned to finish a series of downstream fluorochemical projects this year
Meanwhile, government departments and institutes also enlarged the support to the fluorochemical industry.
The China's New Chemical Materials Industry Investment Fund will be founded, to reach USD762.90 million (RMB5 billion) preliminary
The Liaoning Provincial Economy and Informatisation Commission released the Opinions to Support Fuxin's Fluorochemical Industry Development
In addition, the year 2016 sees the Stage 2 of HCFCs elimination in China. CCM has paid specific attention to the development of R290 room air conditioner business – slow marketisation overall and very few R290 refrigerant on sale.
However, as the industry standards for the installation, maintenance and transportation of R290 room air conditioner are implemented officially in 2016, along with the vigorous support from the Montreal Multilateral Fund, CCM believes that its development will be improved.The year 2015 saw the first year for the sales of R290 room air conditioner in China. However, the demand from end users has not been scalised, and the overall marketisation is very slow. As the industry standards for its installation, maintenance and transportation are implemented officially in 2016, along with the vigorous support from the Montreal Multilateral Fund, CCM believes that the development of R290 room air conditioner will be accelerated.
In Feb. 2015, Inner Mongolia Yonghe announced the plan to put a series of downstream fluorochemical projects into operation this year. This indicates that the company will achieve the supply chain extension and the business upgrading.
In Feb. 2016, Zhejiang Yongtai announced the capital decrease into Shenzhen Mesada, and meanwhile the proposal passed for the acquisition of Zhejiang Zhuoyue. This indicates that the company will cut down the cross-industry investment and focus on main business, to reduce the extra operating risks, and also will use more resources to expand and extend the main business, to tap huge potential.
In Feb. 2016, Zhejiang Kaisn passed the environmental protection acceptance check for its electronic grade wet chemicals project. In light of the overlapping market targeted by the new products and the current electronic grade HF, which will enable the company to expand the sales network horizontally, CCM believes that it will be favarouble for Zhejiang Kaisn to further solidify and improve its market position.
In Feb. 2016, Juhua Group established partnership with Kecheng government (in Zhejiang Province) in the new material business. This signals that Juhua Group, during its practice of the state's guiding policy, will be supported by local government directly to ensure the smooth progress of relevant projects.
In Feb. 2016, Jinhua Yonghe passed the EIA on its technological reconstruction project of high performance fluorine-enriched materials. CCM believes that this project will effectively enrich the company's product categories, beneficial to its improvement of competitiveness and anti-risk capability.
In late Jan. 2016, Zhejiang Juhua announced that its controlling shareholder, Juhua Group, again increased the holdings of shares in it. This strongly showed the parent company's positive attitude towards this subsidiary.
In Feb. 2016, the Fuxin municipal government held a specific meeting, discussing about the measures for the local fluorochemical industry development. It is expected that the city will take the lead in the domestic fluorochemical industry upgrading and transformation, by focusing on the fine fluorochemicals.
In Jan. 2016, China's AHF (99.95%) price stopped falling and tended to be stable. Since the downstream demand will recover after the Spring Festival and the traditional peak period will come in Q2, CCM predicts that AHF (99.95%) market will get into an upturn again.
In Jan. 2016, China's PTFE market was relatively stable. CCM predicts that the market will get into an upturn, as downstream enterprises will quickly replenish the stock from late Feb. and the cost will increase to support the price rises.
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