Industrial policy activates fluorochemical listed companies

In the past few days, in the securities market, the performance of listed companies related to the fluorine chemical industry chain has been eye-catching. Shanghai San Ai Fu New Material Co., Ltd. and Zhejiang Juhua Co., Ltd. have gained more than four consecutive trading days since November 24-29. 30%.
The reason why the market has used the listed companies in the fluorine chemical industrial chain as the subject of speculation stems from the fact that in the “Twelfth Five-Year Plan”, the fluorine chemicals will be listed as a special project. On November 24th, the Ministry of Industry and Information Technology released the “Adoption Conditions for Hydrogen Chloride Industry (Draft for Soliciting Opinions)” to make it clear that the total scale of hydrogen fluoride for newly-built production enterprises should not be less than 50,000 tons/year, and the production capacity of new hydrogen fluoride production facilities should not be lower than 20,000 tons/year (excluding the use of hydrogen fluoride in the comprehensive utilization of resources). All these have made the listed companies in the fluorochemical sector optimistic about investors.
According to the reporter's understanding, after the financial crisis, the listed companies in the fluorine chemical industry have gradually come to the bottom and are developing in a good direction. However, these listed companies also told reporters that since there is no fluorite resource, once the price of fluorite resources rises, it will also have a cost impact on them. “Although Zhejiang has abundant fluorite resources, we have purchased almost all of them.” The staff of the Securities Department of Zhejiang Juhua Co., Ltd. told reporters. Companies such as Shanghai San Ai Fu New Material Co., Ltd. and Henan Duo Fuduo Chemicals Co., Ltd. also stated that the company does not have fluorite resources, and all raw materials produced need to be purchased.

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