definition

Fluorochemicals concept

Fluorochemicals refers to the chemical sub-sector where products contain fluorine in their molecular structure; it can be divided into...The two major sectors are inorganic fluorine chemicals and organic fluorine chemicals.Organic fluorine refers to hydrocarbons containing fluorine in fluorine chemical products, mainly including fluorinated refrigerants, etc.FluoropolymersThe three main categories are fluorinated fine chemicals, among which fluorinated refrigerants are currently the primary applications.Traditional cooling demand is stable, but computing centers are further driving up cooling demand.Fluoropolymers include fluoropolymers, fluororubbers, and fluorocoatings. These products are in a growth phase, with their application areas gradually expanding. Fluorine-containing fine chemicals mainly include pesticides, pharmaceuticals, and dye intermediates. The output of these products is relatively small, but the added value is relatively high. Inorganic fluorine mainly includes fluoride salts and fluorine-containing specialty gases, which are widely used in the new energy and semiconductor industries.

Development History of Fluorochemicals

my country's fluorochemical industry started relatively late, beginning with aluminum fluoride and reaching a milestone with the establishment and gradual expansion of PTFE plants. By the end of the last century, China had moved from "following" to "keeping pace" with developed countries.

Constrained by factors such as fluorite resources, international multinational corporations have carried out large-scale business and asset restructuring around resource allocation, shifting from control of the fluorochemical manufacturing industry to control of the fluorochemical product market.

Due to supply-side reforms, fluorite industry standards have been raised and regulatory efforts have been strengthened, gradually shifting from a fragmented and small-scale industry towards a concentration of leading companies.

Fluorochemicals Cycle Review

The demand for fluorochemicals is the core driver of growth in the industry chain. As a typical cyclical industry, its development is significantly affected by the macroeconomic environment and upstream and downstream cycles. China has already experienced three complete cycles:

1.Round 1 (second half of 2009 - 2011)The home appliance subsidy program, the four trillion yuan investment, and the production restrictions on fluorite drove up the prices of fluorite, hydrofluoric acid, and refrigerants; later, due to overcapacity (concentrated at the upstream of the industrial chain) and inventory backlog, prices fell into a long-term slump.

2.Second roundIncreased demand and supply-side reforms are driving the economic upturn.

3.The third round (2021 to present)Initially driven by emerging demands from new energy sources and the expansion of high-end production capacity, the market sentiment improved significantly. After June 2023, the market entered a period of fluctuation, but with the global shift of the fluorochemical industry, the domestic market is expected to see another surge.

Financing in the fluorochemical industry is highly synchronized with economic cycles: primary market activity fluctuates with economic conditions, and investment directions have shifted from basic refrigerants/fluorine resources in the first round, to fine chemicals such as pharmaceutical and pesticide intermediates in the second round, and then to a third round focusing on new energy-related products.Lithium hexafluorophosphateMaterials such as PVDF; current investment is further tilting towards high value-added fields such as electronic specialty gases and high-end fluoropolymers.

Laws, regulations and industry policies

Entering the 21st century, especially during the 11th and 12th Five-Year Plan periods, my country's fluorochemical industry has experienced rapid development and achieved remarkable results. According to the "11th Five-Year Plan" and "12th Five-Year Plan" periods of China's fluorochemical industry...fiveAccording to the "Five-Year Development Plan," by 2030, the total output value of China's fluorochemical industry will exceed 350 billion yuan, with an average annual compound growth rate of around 12%.，The proportion of high-end fluorinated materials will increase from the current 35% to over 55%.，The self-sufficiency rate of high-end fluoropolymers has increased to over 85%.，The industry's total capacity will be controlled within 8 million tons per year, with an average annual compound growth rate of around 3.2%, far lower than the average level of 6.8% over the past decade.。Fluorochemicals have become an important part of the country's strategic emerging industries. They are also a supporting material needed for the development of new energy and other strategic emerging industries, as well as for upgrading traditional industries. They play a vital role in promoting the structural adjustment and product upgrading of my country's manufacturing industry and are in line with the national industrial policy.

Fluorochemical industry chain

Fluorochemicals is an industry that uses fluorite (calcium fluoride) as a resource base and hydrofluoric acid and other intermediates to produce fluorine-containing inorganic and organic compounds. The upstream raw materials of the fluorochemical industry chain include fluorite and hydrofluoric acid; the midstream fluorochemical products include fluorine-containing polymers, fluorine-containing refrigerants, fluorine-containing fine chemicals, and fluoride salts; and the downstream application areas include construction and textiles, rubber coatings, home appliances and automobiles, rail transportation, defense and military industries, aerospace, electronics and information technology, and new energy, forming a complete chain from resource extraction to high-end manufacturing.

Upstream raw materials

fluoriteindustrychain

Fluorite, a non-renewable resource, forms the foundation for downstream development in the fluorochemical industry. Also known as fluorite, it is a crystalline form of calcium fluoride and a major industrial source of fluorine, making it one of the world's more than twenty important non-metallic mineral raw materials. Fluorite products are specifically classified into acid-grade concentrate, metallurgical-grade concentrate, and high-grade lump ore. Downstream applications include the fluorochemical, metallurgical, cement, glass, and ceramic industries.。

Fluorochemicals (hydrofluoric acid + aluminum fluoride) account for 81% of the total demand, and fluorochemicals have high requirements for fluorite quality (>97%).

Fluorite distribution andreserves

Fluorite resources are concentrated inCircum-Pacific Metallogenic Beltmy country has the second largest fluorite reserves after Mexico, equivalent to approximately 67 million tons of pure calcium fluoride, accounting for about 24% of the global total.。

China ranks second in the world in fluorite reserves and has rapidly risen to become the world's largest producer and consumer of fluorine products by leveraging its resource advantages and large-scale production facilities. In 2022, China's fluorite production accounted for 69% of the world's total.

my country's fluorite resources are mainly concentrated in Hunan, Zhejiang, Inner Mongolia, and other regions. They are characterized by "many associated minerals and few single minerals, many low-grade minerals and few high-grade minerals, and many small minerals and few large minerals." The average grade of fluorite resources nationwide is only 34.7%.

Fluorite production and price

According to USGS data, my country is the world's largest producer of fluorite, accounting for more than 60% of global production, but its reserves-to-production ratio is far below the world average.

In 2022, China accounted for 69% of the world's total fluorite production.

With the technological upgrading of China's fluorochemical industry, the demand for fluoropolymers and fine fluorochemicals from industries such as new energy and semiconductors has significantly boosted the demand for fluorite. According to data from the USGS and the General Administration of Customs, China's apparent consumption of fluorite reached 6.34 million tons in 2023, a year-on-year increase of 15%. The substantial increase in fluorite demand, coupled with a continued contraction in supply, has led to a sustained improvement in the fluorite supply-demand balance, with the price center rising from around 1,500 yuan/ton to approximately 3,000 yuan/ton. Looking ahead, with limited room for further supply increases, the growth in demand from new energy sources and the upward trend in the price center of the fluorochemical industry chain will lead to a slow rise in fluorite prices.

fluoriteThe continued increase in plant operating rates and the heightened activity in the import market have alleviated the tight supply situation in the domestic market.，illustrateA new roundcyclestart。

Major Fluorite Producers

Due to supply-side reforms, fluorite industry standards have been raised and regulatory efforts have been strengthened, gradually shifting from a fragmented and small-scale industry towards a concentration of leading companies.

hydrofluoric acid

Hydrofluoric acid is a key intermediate in the fluorochemical industry, with downstream applications including fluorinated refrigerants, fluorinated polymers, fluorinated fine chemicals, and inorganic fluorine, among which refrigerants are the core downstream product.

Hydrofluoric acid is classified into three grades based on purity and application: industrial grade, photovoltaic grade, and electronic grade. Industrial preparation involves the reaction of fluorite with concentrated sulfuric acid; however, fluorite scarcity drives up costs, and the process is highly hazardous and polluting, consuming strategic resources and facing stringent environmental regulations. The scarcity of fluorite and the normalization of environmental protection exacerbate production fluctuations. In the future, small-scale enterprises without industrial park support and reliant on long-distance raw material transportation will be less competitive and face limitations in capacity expansion. Electronic grade hydrofluoric acid is purified from industrial grade hydrofluoric acid and is a downstream fine chemical product.

In recent years, my country's hydrofluoric acid production capacity has continued to expand, rising from 2.359 million tons in 2020 to 3.843 million tons in 2024, and further to 3.988 million tons in 2025. However, since 2024, the pace of capacity expansion in the industry has gradually slowed down, with a year-on-year growth rate of 11.91% that year, a slowdown of 7.91 percentage points compared to 2023. In 2025, the year-on-year growth rate was only 3.77%, indicating that the industry's capacity expansion has entered a low-speed growth phase.

In terms of exports, both the volume and value of my country's hydrofluoric acid exports have shown a fluctuating upward trend. In 2025, the export market rebounded, with exports reaching 268,100 tons and 3.082 billion yuan, respectively, representing year-on-year increases of 4.89% and 11.95%. In the first quarter of 2026, the export market continued its upward trend, with export volume and value reaching 73,700 tons and 898 million yuan, respectively, representing year-on-year increases of 6.20% and 13.96%.

waterlesshydrofluoric acidpriceNot much change，KeepStablize。

In recent years, outdated hydrofluoric acid production capacity has been gradually phased out, leading to a slight increase in industry concentration. As of the end of 2023, domestic capacity was approximately 3.274 million tons, with 21% of these being plants over 20 years old, and the top five companies (CR5) accounting for 35.4%. Overcapacity remains, with 2023 output at 2.14 million tons and an operating rate of only 65.3%. Although new capacity is expected in 2024, the industry landscape is anticipated to improve as low-end capacity is eliminated and demand grows.

Electronic-grade hydrofluoric acid, as a high-end product in the hydrofluoric acid market, has high technological barriers and added value. In recent years, driven by the development of strategic emerging industries such as integrated circuits and photovoltaics, my country's consumption and sales revenue of electronic-grade hydrofluoric acid have both increased rapidly. Data shows that its consumption increased from 139,000 tons in 2020 to 395,000 tons in 2024, and sales revenue increased from 1.126 billion yuan to 3.415 billion yuan, with average annual compound growth rates of 29.84% and 31.97% respectively, demonstrating the strong demand in the high-end hydrofluoric acid market.

domesticmainhydrofluoric acidProductionenterpriseas follows，Key Chinese producers of anhydrous hydrogen fluoride include:Inner Mongolia Jin'eboCompanies such as Wengfu Group, Zhejiang Juhua, Yonghe Shares, Inner Mongolia Dongyue Jinfeng, Zibo Feiyuan Chemical, Fujian Longfu, Henan Duofuduo, and Qinghai Xikuang Tongxin have a total production capacity of approximately 3.843 million tons per year, accounting for about 87% of the global total production capacity.

Midstream of the industrial chainproductandDownstreamapplication

Driven by factors such as improved industry technology, increased market demand, and ample upstream raw material supply, the output of major fluorochemical products in China has maintained steady growth. According to the "2025-2030 China Fluorochemical Industry Survey and Market Forecast Report" released by the China Business Industry Research Institute, the output of major fluorochemical products in China reached approximately 4.105 million tons in 2024, a 1.2% increase year-on-year. Analysts at the China Business Industry Research Institute predict that the output of major fluorochemical products in China will reach 4.351 million tons in 2025.

refrigerant

Refrigerants, as one of the main products of the fluorochemical industry, occupy an important position. In the fluorochemical industry, refrigerants are mainly divided into four categories: CFCs, HCFCs, HFCs, and HFOs. China currently mainly uses third-generation refrigerants, namely hydrofluorocarbons (HFCs). According to the quota details for third-generation refrigerants released by the Ministry of Ecology and Environment, China's total production quota for third-generation refrigerants in 2024 was 745,600 tons, of which 340,000 tons were for domestic use. The production quota for third-generation refrigerants is divided into 10 varieties, with R32/R125/R134a/R143a having production quotas of 239,600 tons, 165,700 tons, 215,700 tons, and 45,500 tons respectively, totaling 666,500 tons, accounting for 89% of the total production quota for third-generation refrigerants.

Fluorinepolymer

Fluoropolymers are a rapidly developing and high-potential industry within the organofluorine compounds sector. They refer to polymers in which the hydrogen atoms of the C-C bonds are partially or completely replaced by fluorine atoms. They are mainly classified into three categories: fluoropolymers, fluororubbers, and other fluorinated products. Due to their excellent chemical resistance and low surface energy, they play a crucial role in the upgrading of traditional industries such as automobiles, chemicals, and power, accounting for 20% of the total fluorine consumption in the fluorochemical industry.

The main fluoropolymers that have been industrialized in my country include PTFE.(Polytetrafluoroethylene)FEP (fluorinated ethylene propylene copolymer), PVDF (polyvinylidene fluoride)、PFA plastic (fusible polytetrafluoroethylene)Among them, PTFE has the largest consumption, accounting for more than 50% of the global market in terms of capacity, output and demand; PVDF is the world's second largest consumer of fluoropolymers, with significant growth driven by the demand for new energy; FEP is rapidly penetrating the wire and cable industry; PFA has high demand in fields such as semiconductors, but is monopolized by overseas companies, leaving a large space for domestic substitution.

PTFE

PTFE is a polymer of tetrafluoroethylene, accounting for 70% of global consumption of fluoropolymers. China is the largest producer, with a production capacity of over 150,000 tons in 2021, accounting for 60% of the global total. It is divided into two categories: suspension PTFE and dispersion PTFE. Suspension PTFE is used to make medium-sized seals; dispersion PTFE contains concentrate (used for coatings) and resin (used to make high-end materials such as microporous membranes/fibers).

PTFE is heat-resistant, has excellent electrical properties, is corrosion-resistant, and flame-retardant, making it widely used in electronics, electrical engineering, petrochemicals, aerospace, and other fields. 5G technology has a high demand for low-dielectric materials (dielectric constant 2.8-3.2), and PTFE is used in high-frequency copper-clad laminates, among other applications, with demand expected to surge.

Domestic PTFE production is mainly focused on low-end, general-purpose products, with no breakthroughs in high-end technology. The industry has a high concentration (CR3 reaches 55%), with a capacity of approximately 199,100 tons at the end of 2023. However, in 2022, the operating rate was only 59.8%, and consumption was only 66,200 tons, resulting in overcapacity and low prices.China's PTFE production is still mainly focused on injection molding grade low-to-mid-range products, while high-end PTFE, such as soluble PTFE, nano PTFE, and ultra-high molecular weight PTFE, is still primarily produced by foreign companies, such as Solvay (formerly DuPont) of the United States, Daikin of Japan, and Arkema of France.。

PTFE has numerous downstream applications, making the preparation of dispersion resins more challenging.，PTFE has excellent dielectric properties, and 5G communication is driving a peak in demand.Dry electrode technologyIt is expected to become a new growth point for PTFE.，This technology revolutionizes traditional wet processes, eliminating the need for solvents and drying/recycling. It directly forms batteries through roll forming, reducing costs by 15% and increasing energy density by 10%-20%. It is especially suitable for next-generation products such as 4680 batteries and solid-state batteries.

FEP

Perfluoroethylene propylene copolymer (FEP) is made fromTetrafluoroethyleneTFE andhexafluoropropyleneFEP, a copolymer of HFP and FP, is the world's third-largest fluoropolymer product, widely used in aerospace, energy, and oil extraction. In developed countries, FEP usage in building information transmission cables exceeds 70%, while demand is rapidly growing in developing countries. my country's FEP production increased from 4,900 tons in 2010 to 25,500 tons in 2022, and is projected to reach 57,200 tons in 2025.

FEP has excellent performance and is mainly used in wires and cables. It has a melting point of 260±5°C, a density of 2.12-2.17, is resistant to acids and alkalis, and can withstand high and low temperatures (-80~200°C). It has a low dielectric constant, is flame retardant, and has a low coefficient of friction, making it suitable for special cables such as high-temperature and high-frequency electronic equipment cables, computer connection cables, and aerospace wires.

PVDF

PVDF is a homopolymer or copolymer of vinylidene fluoride, which has excellent chemical resistance, high temperature resistance, oxidation resistance and thermal stability. It is also high in strength, impact resistance and wear resistance, making it a tough structural material.

It is mainly used in coatings, injection molding, photovoltaic backsheet films, lithium batteries and water treatment films. In recent years, due to the growth in demand for lithium batteries, the market for battery-grade PVDF as a positive electrode binder has expanded rapidly.

According to the latest report from QYResearch, "Global Polyvinylidene Fluoride (PVDF) Market Report 2025-2031", the global PVDF market size is expected to reach US$9.46 billion in 2031, with a CAGR of 18.7% over the next few years.

PInDFPrices have fallen from their peak and are currently...alreadyKeepsmooth。

PFA

PFA is a copolymer of tetrafluoroethylene (TFE) and perfluoropropyl vinyl ether (PPVE). It is an excellent alternative to polytetrafluoroethylene (PTFE) and has slightly better mechanical properties than polytetrafluoroethylene propylene (FEP) at higher temperatures. Depending on the grade and application, the PPVE content in PFA ranges from 5% to 10%.

PFA made of TFE-HFP-HFPO-PPVE-It is prepared from PFA chains, the preparation process is complex, the polymerization is difficult, the purity requirements for semiconductor-grade products are high (no metal ion residues are allowed), and the product consistency is difficult to control.

In 2022, the global PFA market size was US$430 million. Demand is expected to reach 3,536 tons in 2023, and the PFA market size is projected to reach US$626 million by 2030, with a CAGR of 4.8% from 2022 to 2030.

PFA combines the corrosion resistance, high and low temperature resistance, insulation, and self-lubricating properties of PTFE, and is melt-processable. It is widely used in anti-corrosion coatings, reactor/pipe linings, optical cable protection, and aerospace components, spanning fields such as construction, chemical engineering, machinery, electrical engineering, aerospace, and medical applications. High-purity PFA is primarily used in cutting-edge technologies such as 5G/6G, semiconductors, and photovoltaics, with approximately 70% concentrated in the semiconductor sector.

Semiconductor-grade PFA is still monopolized by foreign companies (Cholmos, Daikin, Bisolv, 3M, etc.), while domestic production can only produce ordinary grade, coating grade, and ultra-pure grade. Globally, over 85% of ultra-high purity PFA (mainly from Europe and the United States) is used in semiconductors, with Japanese companies accounting for about 50% of this field, while domestic products are mostly used in low-end applications.

In 2022, my country's demand for electronic-grade PFA was approximately 310 tons, all of which were imported. In 2023, Daikin's Changshu plant commenced production, enabling local supply, and domestic companies such as Dongyue and Yonghe began to establish their own presence in the market. Currently, the market is dominated by foreign products, which are expensive and of high quality, leaving significant room for substitution. In the future, with the efforts of domestic companies, the industry will move towards high-quality development.

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ETFE

ETFE, commonly known as "soft glass," is a copolymer of ethylene and tetrafluoroethylene. It is a colorless, semi-transparent polymer material, typically manufactured as a thin film. ETFE not only possesses the excellent heat resistance, chemical resistance, and electrical insulation properties of PTFE, but also exhibits outstanding impact resistance, tear resistance, self-cleaning characteristics, low dielectric constant, low dielectric loss, and long tensile life. Its tensile strength can reach 50 MPa, nearly twice that of PTFE, allowing for the formation of highly durable coatings and continuous operation at 150°C.ETFE prices are relatively high (150,000-500,000 yuan/ton).Domestic substitution has not yet been achieved.。

ETFE is widely used in cables for nuclear power and aerospace, membranes (architectural membranes, agricultural membranes), photovoltaic power generation panels (replacing photovoltaic glass), release films for semiconductor packaging, and high-end anti-corrosion coatings (pharmaceutical, high-end chemical, semiconductor electronic transmission pipelines).

The core technical barriers of ETFE are: 1) Synthesis barriers: ultra-high purity (≥99.99%) is required, and the key is to control the alternating copolymer structure (ethylene-tetrafluoroethylene ratio 25:75, 30-80℃/≤20MPa), which is adjusted by a third monomer (such as iodoalkane) and is affected by many factors; 2) Safety barriers: tetrafluoroethylene (TFE) is extremely unstable and explosive, and requires low-temperature storage and transportation in steel cylinders with polymerization inhibitors. Most domestic companies start producing TFE from R22.

The ETFE market is dominated by the US and Japan, with Asahi Glass (holding over 50% global market share) being the largest producer, and Daikin and DuPont among the major players. China relies on imports, with only a few manufacturers possessing mass production capacity: Dongyue Hydrogen Energy currently has a capacity of 3,000 tons/year, with plans to add 10,000 tons/year (to be operational in 2024); Juhua Group has introduced technology through international cooperation, with an existing capacity of 1,000 tons/year.；magnificentfluorineChemical Industry2000ton/Year。

Fluorine-containing fine chemicals

The fluorochemical industry chain starts with fluorite, and its added value increases significantly as it extends downstream. The "14th Five-Year Plan" clearly states that the fluorochemical industry will develop towards specialization, refinement, high-end, and green development, with key breakthroughs in high-tech fluorine-containing pharmaceutical and pesticide intermediates, lithium battery electrolyte additives, and liquid crystal materials with independent intellectual property rights.

Fluorine-containing fine chemicals, as a high-value-added sector, encompass six major categories including organic intermediates and electronic chemicals, and are applied in key areas such as pharmaceuticals and new energy. With the upgrading of downstream industries, their technological research and development and equipment management continue to be optimized, and application scenarios have extended to strategic fields such as aerospace and nuclear energy, indicating enormous market potential.

Lithium hexafluorophosphate

Lithium difluorosulfonylimide

The novel lithium salt lithium bisfluorosulfonylimide (LiFSI) boasts superior performance and promising future prospects. Compared to the traditional lithium salt LiPF6, LiFSI offers numerous advantages, including high conductivity, high thermal stability, resistance to hydrolysis, and suppression of battery gas buildup. Currently, it is primarily used as an additive in electrolytes, but can also be used alone as an electrolyte, widely considered by the industry as an ideal lithium salt electrolyte material for lithium batteries. With the gradual maturation of domestic synthesis processes and the successful development of new technology routes, coupled with the demand for high energy density and high safety in power batteries, LiFSI, as a complement to LiPF6, is gradually demonstrating its market competitiveness.

Cooling fluid

Fluorinated fluids are widely used coolants. Currently, there are three main types of coolants: water, mineral oil, and fluorinated fluids. Electronic fluorinated fluid is an odorless, colorless, and transparent fully fluorinated liquid. This inert liquid possesses stable thermal and chemical properties, as well as excellent insulation, making it widely applicable in various temperature-controlled cooling systems.

In the thermal system.

Fluorinated liquids can be classified into chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and hydrofluoroethers (HFEs) based on their composition and structure. Currently, CFCs are explicitly banned due to their ozone layer depletion and greenhouse effect, and HCFCs will be phased out by 2030. Furthermore, different types of fluorinated liquids have different physical properties and offer considerable adjustability.

As liquid-cooled data centers increasingly replace traditional ones, the demand for fluorinated liquids is expected to increase rapidly.

Development trend

my country's demand for fluorochemical products continues to grow, with production projected to reach 5.07 million tons in 2027. The industry needs to catch up with international standards in terms of quality and environmental protection.

High-end transformation

High-value-added fluorine products are penetrating emerging fields, with fine fluorine chemicals showing the fastest growth. In the future, the focus should be on developing high-tech, high-growth fine chemicals to drive product structure upgrading.

Industrial chain extension

The level of refinement in China's chemical industry needs improvement. Fluorine fine chemicals will develop towards serialization and differentiation, building an efficient industrial chain through "extending, supplementing, and strengthening the chain" to improve the level of product refinement.

Cluster development

The global chemical industry is transitioning towards clustering and a circular economy. The value of fluorochemicals is concentrated in the midstream and downstream sectors, and technological breakthroughs and demand from emerging industries will drive the development of high value-added products.