PTFE is expected to obtain new market opportunities and
bring about market growth with its outstanding physical and chemical properties as the
5G communication industry develops.
A fluoropolymer is a
product that is chemically developed to a high level of efficiency and
polytetrafluoroethylene (PTFE) has become the fluoropolymer whose production
and consumption has increased most rapidly out of all fluoropolymers due to the
its wide variety of newly developed applications. From a demand perspective,
due to the emergence of the worldwide 5G market, PTFE has recently been sought
out for use in high frequency copper plates, radio frequency cables, base
station antenna filters, and other related components. Furthermore, Tesla’s launch of dry electrode technology based
ultra-high nickel anode lithium battery technology has not only brought about
revolutionary changes in the lithium battery industry, but it is also expected
to bring about a large increase in the demand of PTFE binder. Previously, the
main obstacle to progress in China’s material industry was that advanced
materials were mainly used in applications aimed at the local development of
China. However, as China aims to become a worldwide leader in the areas of 5G
and lithium batteries, the Chinese material industry plans to expand its market
for advanced materials. And closely connected with these two areas of development
is the “king of plastics” PTFE.
China leads PTFE production,
but mainly produces low-end products
The worldwide PTFE industry has experienced frequent merging and
reorganization throughout the years, and the current level of competition in
the industry is fairly stable, and the major producers of PTFE outside of China
are the American company DuPont, the French company Arkema, and the Japanese
companies Daikin, AGC Inc., and Kureha Ecology Management Co. Ltd. Due to
breakthrough developments in Chinese fluorination technology during the last
twenty years. However, as well as advantages regarding fluorite resources and
end markets, PTFE production has gradually moved from other countries into
China. During 2019, China produces approximately 140,000 tons of PTFE, which
accounted for over 40% of all PTFE produced worldwide. However, from a
production structure perspective, China mainly produces low-end injection
molding products and demand for PTFE products in China has been slow to
increase. Data shows that rate at which PTFE products were used in China has
consistently maintained a level below 70%, and many high-end PTFE products were
imported from other countries.
The supply of PTFE in China has been relatively high since the end
of 2015, with one reason being the price difference between PTFE dispersion
resin and R22 raw materials. However, from a supply perspective, PTFE requires
upstream distribution of T22 and hydrofluoric acid, which often leads to
byproduct waste disposal problems. Therefore, recent environmental protection
efforts have limited the production of new PTFE materials, which has limited
the operations of PTFE-producing businesses and the elasticity of supply.
Chemical properties of PTFE are
well-suited for diverse applications
Fluoropolymers are a type of macromolecular polymer in which
hydrogen atoms are either partially or entirely replaced by fluorine atoms and carbon-carbon
bonds. Fluorine atoms have relatively low molecular polarizability, the
strongest electronegativity of any atom, a short van der Waals radius, and
therefore， fluoropolymers which contain carbon-fluorine bonds often possess
many advantages compared to other common polymers. For instance, fluoropolymers
often have good heat insulation, low corrosiveness, high weather fastness,
resistance to dissolution, low flammability, high optical transparency, low
friction, a low index of refraction, low surface energy, resistance to water,
and strong anti-oxidation.
For more information on China’s fluoride
market, please check our China Fluoride materials monthly report or email emarket1@cnchemicals.com.