April 24 News – Recently, the Trifluorinated New Materials Project (Phase I) of Zibo Feiyuan Chemical Co., Ltd. was disclosed on the relevant website. The project will construct a 14,000 tons/year 1,1,1-trichlorotrifluoroethane (R113a) unit (Note: the 14,000 tons/year unit and the existing 7,000 tons/year unit serve as backups for each other and will not operate simultaneously), along with supporting facilities such as tank farms, workshops, and circulating water pools. The 1,1,1-trichlorotrifluoroethane (R113a) product will be used internally by the company; by-products include approximately 26,500 tons/year of 31% hydrochloric acid, about 300 tons/year of 40% hydrofluoric acid, and around 4,400 tons/year of 5% sodium hypochlorite, all for external sale.

Chempricehub Analysis:

Hydrochloric Acid, Bull-Bear Score: -1
The project produces approximately 26,500 tons/year of 31% hydrochloric acid as a by-product for external sale, increasing market supply and potentially exacerbating the supply-demand imbalance, exerting downward pressure on spot prices. The significant increase in supply, particularly in the medium- and low-concentration hydrochloric acid market, is likely to trigger regional price competition, representing a generally bearish factor.

Hydrofluoric Acid, Bull-Bear Score: -1
The project yields approximately 300 tons/year of 40% hydrofluoric acid as a by-product for external sale. Although the total volume is relatively small, the new supply may disrupt the local market supply-demand equilibrium, especially in the high-purity hydrofluoric acid segment, restraining upward momentum in spot prices. Given the increased supply, prices face a moderate downside risk, which is a generally bearish impact.

Sodium Hypochlorite, Bull-Bear Score: -1
The project generates approximately 4,400 tons/year of 5% sodium hypochlorite as a by-product for external sale. The increased supply may dilute market demand, particularly in the disinfectant and chemical raw material markets, putting pressure on spot prices. The new capacity is prone to triggering price competition, exerting generally bearish pressure on the current price level.