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Influential factors for the development of China's fluorine material industry

Release time:2024-02-06 16:05

Classification: Industry dynamics

I. Impact of WTO accession

   Our country has acceded to the WTO and is required to provide most-favoured-nation (MFN) treatment to other member countries in accordance with the relevant provisions of the WTO. With the entry of more foreign companies, competition in the industry will become more intense. The production cost of large foreign companies will be further reduced due to advanced technology and cheap local labour in China, which further puts them in a favourable position in the competition. In the international market, the grade of our products and the international market demand is still a distance, into the international market is still quite difficult. In addition, because fluoroelastomer and its related products are mainly used in automobile manufacturing industry, petrochemical industry, machinery manufacturing industry and home appliance industry, so the organic fluorine industry is affected by the chemical industry, automobile, home appliance, machinery manufacturing and other industries development situation. And China's accession to the WTO will bring different degrees of challenges and opportunities to these industries, which in turn will have an impact on the production and operation of fluorine materials.

II. The speciality of fluorine chemical production

As fluorine chemical products are a special class of chemicals, compared with the production of bulk chemicals, the production process is special, i.e., small size of a single set of device, large investment in the funding of the device, long production process, complex technical routes, and stringent requirements for safety and environmental protection during the production process, so fluorine-containing products, although they are high-value-added products, such as the import of 3M7100 and the domestic price difference of several times of the HFE347, the current domestic enterprises are mostly limited funds, scientific research and development, and the majority of the domestic enterprises have limited funds, and the price difference is several times. At present, most of the domestic enterprises have limited funds, weak scientific research force and insufficient investment in science and technology, which makes the product development lack of energy.

In conclusion, fluorine-containing materials, as high-tech products, are the key industries to be developed and supported by the state, and the state has included the organic fluorine products in the Catalogue of Industries, Products and Technologies to Stimulate the Development of the Current State (Revised in 2000). Organic fluorine materials in the fluorine rubber and fluorine resin application limitations are mainly due to the production process more and process control requirements are higher, so that the price of its products is much higher than the general similar rubber and plastics, than the same type of rubber and resin, respectively, about twenty times and ten times more expensive. If there is further innovation in the production process, the price of organic fluorine materials can be reduced (the United States has relevant research results), the market size will be doubled, then the future of organic fluorine materials will be unlimited. The production and application of organic fluorine materials in China is still very backward compared with the United States, Japan and other developed countries, and the development of the domestic market is promising.

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Our country has acceded to the WTO and is required to provide most-favoured-nation (MFN) treatment to other member countries in accordance with the relevant provisions of the WTO. With the entry of more foreign companies, competition in the industry will become more intense. The production costs of large foreign companies will be further reduced due to advanced technology and cheap local labour in China, which further puts them in a favourable position in the competition. In the international market, the grade of our products and the international market demand is still a distance, into the international market is still quite difficult. In addition, because fluoroelastomer and its related products are mainly used in automobile manufacturing industry, petrochemical industry, machinery manufacturing industry and home appliance industry, so the organic fluorine industry is affected by the chemical industry, automobile, home appliance, machinery manufacturing and other industries development situation. China's accession to the WTO will bring different degrees of challenges and opportunities to these industries, which in turn will have an impact on the production and operation of fluorine materials.

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