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Polytetrafluoroethylene (PTFE) is the most widely used fluoropolymer with excellent properties:
PTFE is polymerized by monomer tetrafluoroethylene (TFE) and made from F22. It has a series of advantages, such as high temperature resistance, corrosion resistance, climate resistance, high lubrication, non adhesion, good electrical insulation and so on.
In 2020, the consumption of PTFE is 85000 tons, and the industries with the most downstream applications are petrochemical, machinery, electronics and appliances.
Thanks to its excellent dielectric properties, PTFE has been more and more used in 5g, aerospace, military and other high-frequency communication fields, and will also be a major growth point in the downstream in the future.
Dispersed resin has better processability and product performance:
At present, the global capacity of suspension resin is 50%-60%, the dispersed resin is 20%-35%, and the rest is PTFE emulsion. The particle size of suspended resin is mm, which can only be formed by similar powder metallurgy methods.
The particle size of dispersion resin is submicron (250350nm), which can be used for paste extrusion and push molding. The products produced include small-diameter rods, wires, thin-walled tubes and raw material belts.
The PTFE emulsion has fluidity and can be filled with more filler than powdered resin, used for special purpose bearings and fuel cell membranes.
China's PTFE structural overcapacity, high-end products rely on imports:
For some high-end modified products with excellent performance, the high-end market is mainly dominated by foreign companies due to high technical barriers and short supply. According to Baichuan Yingfu, in 2020, the effective capacity of PTFE in China was 147000 tons. Most of the products produced were general-purpose varieties, and the capacity was significantly higher than the demand.
China exports more than 20000 tons of PTFE every year, mainly medium and low-end, and imports about 5000 ~ 6000 tons. It is a high-performance PTFE modified product. According to the data of China Customs, the price difference between import and export of PTFE products in recent three years is about 2500 US dollars, reflecting the grade difference between export and import products. At present, China's industry leaders have the production capacity of various types of PTFE:
China's PTFE market concentration is relatively high. The main production enterprises include Shandong Dongyue, Zhejiang Juhua Co.Ltd(600160) , Zhonghao Chenguang and other enterprises, with Cr4 exceeding 60%. China's leading enterprises in the industry have the production capacity of producing many types of PTFE, and look forward to further breakthroughs in domestic substitution.
Market review:
Sector performance: this week, CITIC's primary petroleum and petrochemical index rose or fell by + 0.16%, ranking 10th among 30 industry indexes. The Shanghai index rose or fell by - 1.13% this week, and the CITIC primary petroleum and petrochemical index was + 1.29% relative to the Shanghai index. Rise and fall of petroleum and petrochemical sub sectors: oil sales and storage (+ 9.33%), oilfield services (+ 5.02%), engineering services (+ 2.86%), oil exploitation (+ 2.57%), oil refining (- 1.30%), other petrochemical (- 1.81%).
Rise and fall of individual stocks: this week, the petroleum and petrochemical sector led the rise of individual stocks, including Xinjiang Beiken Energy Engineering Co.Ltd(002828) (+ 18.38%), Xinjiang International Industry Co.Ltd(000159) (+ 14.40%), Hunan Heshun Petroleum Co.Ltd(603353) (+ 11.62%), Hunan Yussen Energy Technology Co.Ltd(002986) (+ 9.84%); Stocks leading the decline include Rongsheng Petro Chemical Co.Ltd(002493) (- 5.54%), Tongkun Group Co.Ltd(601233) (- 4.13%), Hengli Petrochemical Co.Ltd(600346) (- 2.89%), Guangdong Modern High-Tech Fiber Co.Ltd(300876) (- 2.85%), Xinfengming Group Co.Ltd(603225) (- 2.71%), etc.
Risk warning: policy risk; Geopolitics exacerbates risks; The risk of sharp fluctuations in crude oil prices and the risk of continued deterioration of the global covid-19 epidemic;
