Prices for fluoropolymers are showing signs of recovery from their lows, with supply-demand dynamics improving and a consequent upward shift in average prices expected. This positive industry trend is anticipated to enhance corporate profitability. Furthermore, domestic companies are making continuous breakthroughs in high-end fluoropolymer applications, providing a foundation for medium to long-term growth. The primary viewpoints are outlined as follows.

Fluoropolymer Prices Rebounding from the Bottom

According to industry data, as of June 5, 2026, the prices for mainstream fluoropolymers PVDF (East China battery-grade) and PTFE stood at 62,000 and 52,000 yuan per ton, respectively. Monthly gains were 0% and 1.96%, quarterly gains were 3.33% and 11.83%, and annual gains reached 12.73% and 23.81%. Following a nearly four-year downtrend, fluoropolymer prices are now rebounding from their lows, driven by marginal improvements in supply-demand fundamentals and rising costs for hydrofluoric acid (HF).

Marginal Improvement in PVDF and PTFE Supply-Demand Dynamics

For PVDF, the supply side has progressed through a capacity expansion cycle initiated after 2020 and is now entering its final stages. While some planned capacity additions remain, the scale of new projects expected to materialize is likely limited, considering the industry is still operating at historically low levels. On the demand side, driven by the rapid growth of the downstream lithium battery industry, PVDF demand continues to increase. From 2020 to 2025, industry demand grew from 37,000 tons to 102,900 tons, representing a compound annual growth rate of 22.72%.

For PTFE, capacity expansion has stalled since 2022, with capacity holding steady at 199,100 tons. Demand for PTFE has maintained growth, rising from 58,300 tons in 2020 to 113,100 tons in 2025, a compound annual growth rate of 14.15%. The marginal improvement in supply-demand conditions is expected to support a bottoming and subsequent rise in the average price levels for both PVDF and PTFE.

Continuous Breakthroughs in High-End Fluoropolymers

Fluoropolymers possess excellent physical and chemical properties, including high-temperature resistance, resistance to acids, alkalis, and solvents, electrical performance, mechanical strength, non-stick characteristics, weather resistance, and hydrophobicity. They are widely used in sectors such as telecommunications, new energy, electronics, aerospace, machinery, textiles, construction, pharmaceuticals, and automotive.

Domestic enterprises are achieving continuous breakthroughs in high-end applications. For instance, Juhua Co., Ltd. has commenced formal mass production of ultra-pure PFA products, with purity meeting semiconductor-grade requirements. Key metal ion leaching is stably controlled at ppt levels, and total metal ion leaching is controlled at ppb levels, filling a domestic gap in the industrialization of high-end fluoropolymers.

Yonghe Co., Ltd. maintains a leading domestic position in key performance indicators for its FEP products, such as dielectric loss, thermogravimetric analysis, and MIT (flex endurance), approaching international advanced standards. Its PFA product performance is continuously optimized, and its application fields are expanding. The Shaowu Yonghe high-purity PFA project entered trial production in October 2025.

Haohua Chemical Technology Co., Ltd. has achieved breakthroughs in key technologies for high-performance fluoropolymers, particularly in polytetrafluoroethylene (PTFE) resins and fluororubber, transitioning from following to running alongside international peers in these areas.

Key Risks to Consider

Potential risks include sharp fluctuations in raw material prices, fluoropolymer demand falling short of expectations, and slow adoption of high-end fluoropolymer applications.