World Fluorochemicals

Freedonia Group Inc
August 1, 2009
362 Pages - SKU: FG2419666
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Countries covered: Global

Global demand to reach 3.1 million metric tons in 2013
Global demand for fluorine-containing chemicals is forecast to rise 2.5 percent per year to 3.1 million metric tons in 2013. Gains will be driven by healthy growth in the production of refrigeration and cooling equipment, boosting demand for fluorocarbon refrigerants, particularly in the developing world. Growth in demand for fluoropolymers, which will remain strong in nearly all world regions, will also benefit overall market gains. However, gains will be restrained by continued concerns over the environmental impact of fluorochemicals, which are leading consumers in major markets to limit fluorochemical use or switch to nonfluorinated alternative products.

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Additional Information

HFC demand benefits from HCFC phaseout
Fluorocarbon demand will increase at a pace roughly in line with the fluorochemicals market as a whole; however, this masks a considerable shift in the prospects for individual products. Demand for HCFCs, which saw healthy growth during the 2003-2008 period, will begin to decline through 2013. The 2007 adjustment to the Montreal Protocol has accelerated the start of HCFC phaseout in developing countries such as China and India, significantly reducing growth prospects going forward. This, in turn, will drive strong advances in demand for HFCs, the most common replacements for HCFCs, in the developing world. However, HFCs are beginning to come under increasingly strict regulations, particularly in Western Europe, restraining demand for fluorocarbons overall. Gains in demand for inorganic and specialty fluorochemicals will decelerate markedly from the 2003-2008 period, as aluminum production (the largest outlet for these products) exhibits a similar slowdown. However, demand for the higher-value specialty products, such as fluorochemical gases, will benefit from strong growth in world electronics production. Fluoropolymers will exhibit the most rapid advances of any major fluorochemical product type, fueled by a rising need for high-performance materials in chemical processing, electronics and motor vehicle applications. The Asia/Pacific region will continue to account for the largest portion of fluorochemical demand in 2013, totaling just under half of the world market. The region will also see above-average gains in demand, although slowing considerably from the pace of increase during the previous decade. The fastest demand growth, however, is expected for the Africa/Mideast region (from a relatively small base), fueled by a rapid increase in aluminum metal production in the region. In a continuation of long-term trends, the US, Western Europe and Japan will account for a shrinking share of the world fluorochemical market, as the developed world adopts more stringent restrictions on the use of fluorine-derived products.

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