Fluor Polymer Opportunity in China

There is no doubt that fluorine industry has been one of the fastest developing and most promising industries in China. And within the fluorine industry chain, fluor polymer industry is definitely the golden industry, with the highest added value. In fact, the fluor polymer industry has developed rather fast in the past five years and a few enterprises have become the leading players, such as Dongyue Group, Chenguang Institute, Shanghai 3F, etc. Along with the development of the production of fluor polymers, the application of fluor polymers has also progressed a lot. Low price and abundant supply of fluor polymers are the two main factors stimulating the application. Nowadays, China is one of the largest producers and consumers of fluor polymers in the world. So what is the actual supply situation of fluor polymers in China? And what are the producers' strategies amid intense competition?

Both production and processing of fluor polymers are still concentrated in primary products in China, such as PTFE molding grade and semi-finished products of molding grade. The high-end products such as PFA, ETFE and film products still rely on import. What are the restrictions on the fluor polymer industry in China? What are the real consumption situation of fluor polymers from each industry and finished goods and how to develop in the future?

In order to upgrade the industrial structure of fluor polymer, the Chinese government has adopted a series of policies. For instance, developing the production of PVDF, FEP and ETFE is specifically listed in the encouraging category in the Guideline Catalogue for Industrial Structure Adjustment. And the production of film products of fluor polymers is encouraged by the 12th Five-Year Plan for Fluorine Chemical Industry. So how will these policies affect the fluor polymer industry?

Although China's economic growth is estimated to slow down in the coming years, with GDP growth rate no more than 8% during the 12th Five-Year Plan period, it is still a fast developing country in the world. Fluor polymer industry, one of industries encouraged by the Chinese government, will probably develop much faster than the GDP growth rate.

To figure out the opportunities in fluor polymer industry, CCM International makes a deep survey of the market of fluor polymers in China in this report, including PTFE with 4 grades, PVDF, FEP, PFA and ETFE. CCM International also draws a complete picture of consumption situation in the value chain of fluor polymers, fluor polymers – semi-finished products – industries – finished goods. The report includes:

- Production situation of each fluor polymer in China (2009-2011)
- Consumption volume of each fluor polymer (2009-2011)
- Consumption matrix for the value chain, fluor polymers – semi-finished products – finished goods (covering over 50 finished goods) (2009-2011)
- Import and export analysis of each fluor polymer in China (2009-2011)
- Raw material supply situation in China
- Price of fluor polymer (2009-2011) and trend
- Analysis of policies and government programs related to fluor industry in China
- Processing situation of fluor polymer semi-finished products in China
- Forecast on the production of fluor polymer (2012-2016)
- Forecast on the consumption matrix (2012-2016)
- Investment opportunity and recommendations in fluor polymer industry

Contents
Executive summary 1
Methodology 2
1 Supply situation 10
1.1 Production situation of fluor polymer (2009-2011) 10
1.1.1 PTFE (4 grades) 10
1.1.2 PVDF 11
1.1.3 FEP 13
1.1.4 PFA 13
1.1.5 ETFE 14
1.2 Overview of producers (2009-2011) 14
1.2.1 PTFE (4 grades) 14
1.2.2 PVDF 19
1.2.3 FEP 21
1.2.4 PFA 22
1.2.5 ETFE 22
1.3 Overview of semi-finished product producers 22
1.3.1 PTFE 22
1.3.2 PVDF 24
1.3.3 FEP 25
1.3.4 PFA & ETFE 26
1.4 Raw material 26
1.4.1 Fluorspar 26
1.4.2 AHF 28
1.4.3 HCFC-22 (Including seasonal demand) 29
2 Technology (Technological innovation situation) 33
3 Policy and government program 34
4 Market overview 38
4.1 Price 38
4.1.1 Historic price (2009-June 2012) 38
4.1.2 Trend 42
4.2 Import & export analysis (2011) 43
4.2.1 PTFE (4 grades) 43
4.2.2 PVDF 47
4.2.3 FEP 50
4.2.4 PFA 54
4.2.5 ETFE 55
4.3 Consumption volume 57
4.4 Overview of PTFE market in South Korea 59
5 Summarization of usage situation 60
6 Conclusion and commercial opportunity 64
6.1 Market prospects for specific fluoropolymer 64
6.2 Investment recommendation 65

LIST OF TABLES
Table 1.2.1-1 Capacity and output of top five PTFE producers in China, 2011
Table 1.2.1-2 Capacity and output of PTFE producers in China, 2009-2011
Table 1.2.1-3 Capacity and output of PTFE molding grade producers in China, 2009-2011
Table 1.2.1-4 Capacity and output of PTFE aqueous dispersion producers in China, 2009-2011
Table 1.2.1-5 Capacity and output of PTFE fine powder producers in China, 2009-2011
Table 1.2.2-1 Output and capacity of PVDF in China, 2009-2011,
Table 1.2.3-1 Output and capacity of FEP in China, 2009-2011
Table 1.4.1-1 Main producers of fluorspar in China, 2011
Table 1.4.2-1 Main producers of AHF in China, 2011
Table 1.4.3-1 Major producers of HCFC-22 in China, 2011
Table 3-1 Export rebate and tariff of fluorite in China, 2003-2012
Table 3-2 Export rebate of basic fluor resins in China, 2007-2012
Table 4.1.1-1 Price range for some PTFE composites, July 2012
Table 4.2.1-1 Export volume, value and price of PTFE in China, 2011
Table 4.2.1-2 Major exporters of PTFE in China, 2011
Table 4.2.1-3 Major export destinations of PTFE in China, 2011
Table 4.2.1-4 Import volume, value and price of PTFE in China, 2011
Table 4.2.1-5 Top five importers of PTFE in China, 2011
Table 4.2.1-6 Major import origins of PTFE in China, 2011
Table 4.2.2-1 Monthly import volume, value and price of PVDF in China, 2011
Table 4.2.2-2 Main importers of PVDF in China, 2011
Table 4.2.2-3 Import origins of PVDF in China, 2011
Table 4.2.2-4 Monthly export volume, value and price of PVDF in China, 2011
Table 4.2.2-5 Main exporters of PVDF in China, 2011
Table 4.2.2-6 Export destinations of PVDF in China, 2011
Table 4.2.3-1 Monthly import volume, value and price of FEP in China, 2011
Table 4.2.3-2 Main importers of FEP in China, 2011
Table 4.2.3-3 Import origins of FEP in China, 2011
Table 4.2.3-4 Monthly export volume, value and price of FEP in China, 2011
Table 4.2.3-5 Main exporters of FEP in China, 2011
Table 4.2.3-6 Export destinations of FEP in China, 2011
Table 4.2.4-1 Monthly import volume, value and price of PFA in China, 2011
Table 4.2.4-2 Main importers of PFA in China, 2011
Table 4.2.4-3 Import origins of PFA in China, 2011
Table 4.2.5-1 Monthly import volume, value and price of ETFE in China, 2011
Table 4.2.5-2 Main importers of ETFE in China, 2011
Table 4.2.5-3 Import origins of ETFE in China, 2011
Table 4.4-1 China's export volume, value and price of PTFE to South Korea by grade, 2011

LIST OF FIGURES
Figure 1.1.1-1 Capacity and output of PTFE in China, 2009-2011
Figure 1.1.1-2 Output of PTFE by grade in China, 2009-2011
Figure 1.1.2-1 Capacity and output of PVDF in China, 2009-2011
Figure 1.1.3-1 Capacity and output of FEP in China, 2009-2011
Figure 1.4.1-1 Fluorspar proven reserve distribution in China, 2011
Figure 1.4.3-1 Capacity and output of HCFC-22 and output growth rate in China, 2005-2011
Figure 1.4.3-2 Consumption pattern of HCFC-22 in China, 2011
Figure 4.1.1-1 Price of main kinds of fluor polymers in China, 2009-Jun. 2012
Figure 4.1.1-2 Price index of main kinds of fluor polymers in China, 2009-Jun. 2012
Figure 4.1.1-3 Prices of PTFE and PTFE's main raw materials in China, 2010-Jun. 2012
Figure 4.1.1-4 Price index of PTFE and PTFE's main raw materials in China, 2010-Jun. 2012
Figure 4.2.1-1 Export price of PTFE by grade in China, 2011
Figure 4.2.1-2 Import price of PTFE by grade in China, 2011
Figure 4.3-1 Consumption volume of PTFE by grade in China, 2009-2011
Figure 4.3-2 Consumption volume of PVDF and FEP in China, 2009-2011
Figure 4.3-3 Consumption volume of PFA and ETFE in China, 2009-2011