Movement Alert|Dongyue Group Rises 5.81% in Regular Trading, US and UK Extend HFCs Usage Period Boosting Refrigerant Demand Outlook

Market Focus
May 26

On May 26, Dongyue Group rose 5.81% in regular trading, trading at HK$15.0/share, with trading volume of HK$136 million. The rally was driven by favorable policy developments from both the US and UK regarding hydrofluorocarbons (HFCs).

On the news front, the US EPA formally signed and published a final rule substantially relaxing GWP limits across multiple core sub-sectors, effectively extending the legal usage lifespan of third-generation refrigerants in the US. Additionally, the UK Department for Environment, Food and Rural Affairs announced a postponement of its proposed fluorinated gas phase-down steps. Analysts noted that the overseas usage period extension provides stronger demand-side support for HFCs, and given that global HFC production capacity is predominantly concentrated in China with limited overseas supply, Chinese refrigerant producers are expected to benefit significantly.

Dongyue Group is a major fluorine-silicon chemical materials producer with operations spanning refrigerants including R22 and R142b. Domestically, third-generation refrigerant core products have surpassed RMB 60,000/ton as of April, while the company's 49,000-ton R32 expansion project is set to bring total R32 capacity to 120,000 tons upon completion.

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