|Fluorspar: China’s support policies for businesses under COVID-19|
Posted 27th March 2020 in ?Industry news.
By Kerry Satterthwaite
Earlier in March, the Chinese Ministry of Finance and the State Administration of Taxation issued Announcement No. 15 of 2020, on increasing the export tax refund rate for some products. According to this latest announcement, China will increase the export tax refund rate for 1,464 products, with the rate for 1,084 products increasing to 13% and the rate for 380 products increasing to 9%.
Most of the products covered by this announcement are produced by small and medium-sized enterprises and the move is, therefore, consistent with the Chinese government’s current strategy to secure employment and stabilise small and medium-sized enterprises.
The announcement includes more than 70 products involved in the fluorine chemicals industry. More than 90% are pesticides or pesticide intermediates, and eight fluorocarbon refrigerants are involved. Fluorspar, HF, aluminium fluoride and fluoropolymers are not included.
China’s main fluorocarbon refrigerant exports comprise HCFC-22, HFC-32, and HFC134a. These chemicals accounted for 89% of Chinese refrigerant export volumes in Q4 2019. They are excluded in the above announcement.
This new announcement on the export tax refund rate is likely to stimulate Chinese exports and production of fluorine pesticides and pesticide intermediates, but it will have a limited effect on the whole mine-to-market fluorine supply chain. Roskill will continue to monitor new Chinese support policies for businesses via our Shanghai office.
Fluorspar is a critical strategic raw material. It is used directly in steel production and in aluminium production in the form of aluminium fluoride. It is also the principal source of fluorine (via HF) for the fluorochemical industry, which encompasses the production of a wide range of important products, from refrigerant gases to speciality polymers and chemicals used in the production of electronics, medicines and nuclear fuels. Many of these end-use markets are large and mature, but fluorspar also finds application in smaller but rapidly growing markets such as in the production of electrolytes for lithium-ion batteries.
Overall, Roskill is anticipating a healthy compound annual growth rate for fluorspar demand between 2019 and 2029, driven largely by high-value acidspar markets. China dominates acidspar supply. The USA and Canada are heavily import dependent.
The NEW 14th edition of Roskill’s report on fluorspar, with forecasts to 2029, was just published in February 2020 and breaks down the complex fluorine supply chain considerations into clear forecasts with price forecasts based on international analysis of both supply and demand. Dr Adam Coggins reviewed the market in an interview with Proactive Investors in December 2019: click here to view.
Contact the author This article was written by Kerry Satterthwaite. Please get in touch below if you wish to discuss further:
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