Corporate profits drop sharply Domestic fluorine chemical industry is deeply in the trap of investment

Overcapacity has always been a chronic problem in the development of the industry. Now it has become the most important issue that restricts the development of the petrochemical industry and is spreading to emerging industries. One of its typical features is the fluorine chemical industry, whose head is “gold industry” and the halo of emerging industries, is now deeply trapped in the “virtualization of national fluorine chemical industry” investment cycle: the price of products “divides” and corporate profits drop, while the construction of fluorinated industrial parks remains the same. blossom everywhere.

There are many reasons for this investment impulse: First, the fluorine chemicals experienced an “explosive” increase in 2010 and 2011, and the related industrial chain was affected by “fluorine” and attracted a large number of investors; the second was fluorite resources. Considered a strategic scarce resource, all provinces that have fluorite resources will focus on fluorination as a key industry and establish a fluorine chemical industrial park.

The leaps and bounds of investment in the fluorine chemical industry in the past two years have intensified the repeated construction of low-end and middle-end products and increased the difficulty in adjusting the industrial structure. The most direct consequence is the decline in corporate profits. According to the latest operating data released by the China Fluorine-silicone Organic Materials Industry Association, in 2012, the organic fluorine (mainly fluoropolymer and fluorocarbon) industries achieved industrial output value of 22.6 billion yuan, a decrease of 32% over the previous year. The price of the product was significantly “diving”, the average price of PTFE fell by 32%, the price of HFC-134 dropped by 44%, and the price drop of HFC-125 was even up to 60%. The corporate profits are generally poor. Juhua’s annual report shows that net profit in 2012 was 602 million yuan, down 65.5% over the previous year; Sanai’s net profit decreased by 80.9% compared with the previous year; Dongyue Group’s operating profit decreased by 58.3% compared with the previous year. .

Fluoride investment must be vigilant. The fluorinated workers known as the "golden industry" do not need only a little fluorite resources, and they can do well with money and enthusiasm. The most important capital for the development of fluorinated workers is technology and talents. The high-tech products that make up this industry are.

Daikin Corporation of Japan does not possess fluorite resources. DuPont and Solvay also have limited fluorite resources. However, these companies are capable of becoming a market leader in the fluorine chemical industry. Stones are converted into cutting-edge fluorine-containing fine chemicals with a value-added effect of several hundred times. At present, new projects of many large enterprises in China are still concentrated on large-scale products, and their development prospects are worrisome. Keeping fluorite resources as a low-end product has no competitiveness.

As soon as the project is completed, bitter fruit can only be tasted by everyone. In order to make the industry enter the track of sound development, we should curb the banner of resources and blindly construct fluorinated industrial parks and overcapacity devices. We should rationalize the layout of fluorinated industrial parks to avoid low-level duplication. What is more important and urgent is to shift the enthusiasm and focus of industrial development to technological upgrading. Powerful companies should turn their attention to strengthening the research, development, and industrialization of high-end fluoropolymers, environmentally friendly refrigerants, and fluorine-containing fine chemicals. High value-added products have truly achieved the “gold industry” of fluorinated workers.