On Aug. 18, 2012, Shanghai 3F New Material Co., Ltd. (Shanghai 3F) issued its financial report in H1 2012, which showed that it achieved revenue of USD252.78 million and operating profit of USD21.62 million in H1 2012, decreasing by 40.80% and 83.07% separately compared with H1 2011, according to CCM’s September Issue of China Fluoride Materials Monthly Report.
The decline of its business performance is primarily influenced by the dismal market and price declines of fluorochemicals.
Fluorine refrigerants and fluoropolymers are the main products of Shanghai 3F. Due to the depression of global economy and domestic economy, the prices of refrigerants and fluoropolymers in China have dropped a lot in H1 2012.
From 2010 to 2011, domestic household electrical appliances industry experienced a rapid growth in China. However, influenced by the cancelation of financial subsidy to household electrical appliances on May 31, 2011 and the termination of the Household Electrical Appliances Going to the Countryside Policy at the end of 2011, the growth rate of domestic household electrical appliances industry has decreased rapidly in H1 2012. In H1 2012, the total output of room air conditioners, refrigerators and freezers in China was 80.39 million units, 41.45 million units and 9.03 million units with the growth rates of 1.5%, -7.4% and -4.6% respectively.
Influenced by the depressed global economy and the slowdown of domestic household electrical appliances industry, the demand for refrigerants has been decreasing in China and the prices of fluorine refrigerants kept downward in H1 2012. For example, domestic price of HCFC-22 was USD1,574/t in June 2012, decreasing by 59.55% compared with that in Jan. 2011.
On the other hand, due to the depression of global economy and domestic economy, the market situation of fluoropolymers' downstream industries is dismal, which leads to the weak demand for fluoropolymers and a price decline in H1 2012. For example, the average price of PTFE dispersion resin in China has decreased by 3.03%, from USD19,912/t in H1 2011 to USD19,308/t in H1 2012.
According to Shanghai 3F, influenced by the dismal market demand and price decline of fluorine refrigerants and fluoropolymers, the total operating revenue of its main businesses in H1 2012 was USD175.72 million, decreasing by 47.85% year on year, while the total operating profit ratio of its main businesses decreased to 14.75% in H1 2012 from 31.35% in H1 2011.
It's estimated that Shanghai 3F's performance in H2 2012 is unlikely to turn better. Influenced by the European debt crisis and slowdown in domestic economic growth, domestic fluorine chemical industry will keep dismal in H2 2012. The demand for fluorochemicals is unlikely to witness a large growth and the prices of fluorochemicals will keep low in H2 2012. Therefore, it's estimated that shanghai 3F's performance in H2 2012 will have a large decline compared with that in the same period of 2011.
Source: China Fluoride Materials Monthly Report 1209
http://www.cnchemicals.com/Newsletter/NewsletterDetail_241.html
Main content of China Fluoride Materials Monthly Report 1209:
Yanchang Petroleum Group integrates fluorite resources in Shangluo City
Domestic fluorite price keeps downtrend in Aug. 2012
Worldwide-first SF6 CDM project of China issued by EB
Construction of 300t/a HFC-c-447ef project of Shenguang Chemistry going on smoothly
Fuming new material integrated project to launch construction in Oct. 2012
EC's anti-dumping policy to seriously impact domestic electronic grade HF industry
Hubei Zhuoxi breaks international monopolization of graphite fluoride
Wengfu realizes 100% utilization of fluorine resource from tail gas
Shanghai 3F's operating profit decreases by 83.07% in H1 2012
New-energy vehicles out of the cold in Guangzhou's first license-plates lottery draw
Hexafluo plans to expand its production of fine fluorine chemicals
Import and Export analysis of fluoride chemicals in China in July 2012
China Fluoride Materials Monthly Report, a monthly publication issued by CCM International on 20th of every month, covers the sectors on policy & legislation, company dynamic, supply & demand, price update, etc. of China’s fluoride material market. It will help you follow the dynamic throughout the whole value chain immediately.
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