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In March 2026, the domestic fluoroplastics market witnessed a new round of widespread price hikes. Prices of mainstream products, including PTFE (Polytetrafluoroethylene), FEP (Fluorinated Ethylene Propylene), and PFA (Perfluoroalkoxy Resin), surged across the board by 15%–20% on average, with Hexafluoropropylene (HFP) prices jumping as much as 17%. As a core hub for rubber and plastic processing in South China, the Guangzhou market has aligned with this price adjustment trend. Driven by robust demand from downstream high-end industries such as semiconductors and new energy batteries, fluoroplastics spot supply remains tight, and quotations have continued to edge up. Local processing enterprises are proactively responding to cost fluctuations and seizing growth opportunities in high-end application segments.

This widespread fluoroplastics price increase is reported to have begun around March 20, with leading domestic fluorochemical enterprises such as Shandong Dongyue and Juhua Co., Ltd. successively issuing price adjustment notices. This marks the third price hike for some enterprises since the start of the year, and the consecutive increases in a short period underscore significant cost pressures on the production side. As of March 25, local market quotations in Guangzhou show that the mainstream price of PTFE suspension medium particles has climbed to RMB 50,000–52,000 per ton, an increase of RMB 4,000 per ton from the beginning of March. The price of low-end FEP extrusion materials stands at RMB 56,000–58,000 per ton, while molding materials are quoted at RMB 68,000–73,000 per ton, both up by RMB 2,500–3,000 per ton from the previous period. General-grade PFA remains stable at RMB 70,000–75,000 per ton, with high-end semiconductor-grade PFA still commanding a premium at RMB 150,000–200,000 per ton.

The core driver behind this price surge stems from the combined impact of cost and demand factors. On the cost front, the ongoing escalation of geopolitical tensions in the Middle East and disrupted navigation through the Strait of Hormuz have triggered a sharp rise in global crude oil and natural gas prices. As core feedstocks for fluorochemical production, the surge in crude oil and natural gas prices has directly pushed up overall costs across the fluoroplastics production, transportation, and processing value chain. To ease profit pressure, enterprises have been forced to pass on these cost increases to consumers. Additionally, supply constraints on upstream raw materials such as fluorite and hydrofluoric acid, driven by environmental policies and resource limitations, have pushed up price levels, further intensifying production-side pressures and boosting overall fluoroplastics prices.

Sustained strong demand on the downstream side has provided solid support for this price increase, with the semiconductor and new energy battery industries emerging as key drivers of fluoroplastics demand and core service areas for local processing enterprises in Guangzhou. In the semiconductor industry, fluoroplastics are indispensable throughout the chip manufacturing process, thanks to their ultra-high purity, exceptional corrosion resistance, high-temperature tolerance, and low dielectric constant. PTFE and PFA are widely used in wafer wet etching and cleaning processes—including baskets, holders, and pipelines/valves for high-purity chemical delivery—effectively preventing metal ion contamination and ensuring wafer processing precision. FEP is utilized in insulation sheaths for semiconductor equipment cables to ensure stable signal transmission and compliance with strict cleanroom requirements. As China’s semiconductor industry advances to 7nm and smaller process nodes, demand for semiconductor-grade fluoroplastics has surged. With a self-sufficiency rate of less than 30% for high-end PFA and PTFE, heavy reliance on imports has further driven up market demand and price premiums.

Fluoroplastics also have extensive and rigid applications in the new energy battery sector, particularly PVDF (Polyvinylidene Fluoride) and PTFE, which have seen significant demand growth. PVDF accounts for over 90% of the lithium battery cathode binder market due to its excellent electrochemical stability and high adhesion strength. With the global boom in electric vehicles and energy storage, demand for lithium battery-grade PVDF has continued to rise. In 2024, the lithium battery sector surpassed traditional coatings to become the largest application market for PVDF, accounting for more than 52% of total demand. PTFE is used in battery seals and diaphragm coatings to enhance sealing performance, corrosion resistance, and battery lifespan, while FEP is employed in battery case insulation to withstand the high-temperature and high-vibration operating conditions of new energy vehicles, ensuring battery safety. As a core of South China’s new energy industrial cluster, Guangzhou is home to a large number of lithium battery manufacturers and supporting enterprises, generating strong demand for customized, precision-processed fluoroplastics and further boosting local market activity.

Current conditions in the Guangzhou local market show tight fluoroplastics spot supply, with traders exhibiting strong reluctance to sell and downstream processing enterprises ramping up stockpiling. Some enterprises have adjusted product quotations in line with the price hikes to alleviate cost pressures. Key local processing enterprises, such as Guangzhou Best Rubber & Plastic, stated that they have proactively optimized their supply chain layout and built up a certain inventory of fluoroplastics. This inventory buffer enables them to absorb part of the rising material cost pressure in the short term without implementing significant immediate price increases, thereby maximizing the interests of downstream customers. Additionally, leveraging mature precision processing technologies, the company will further optimize its supply chain, focus on high-end segments such as semiconductors and new energy batteries, and provide customized processing services for fluoroplastics products (including PTFE, FEP, and PFA) such as seals, pipelines, housings, and brackets—balancing cost control and product quality to help downstream enterprises navigate market fluctuations smoothly.

Industry analysts note that in the short term, there are no signs of de-escalation in Middle East geopolitical tensions, and high volatility in energy prices is expected to persist. Cost pressures on the fluorochemical industry will remain difficult to ease, and fluoroplastics prices are projected to maintain a strong trajectory. Meanwhile, the continued expansion of downstream industries such as semiconductors and new energy batteries will further unlock high-end fluoroplastics demand, driving the industry toward higher purity and functional compounding. For local fluoroplastics processing enterprises in Guangzhou, seizing opportunities in high-end application segments, strengthening technological R&D, improving processing capabilities for high-end fluoroplastics products, reducing import dependence, and optimizing cost management will be critical to achieving high-quality industry development.

Going forward, the price trend of fluoroplastics in the Guangzhou market will continue to be influenced by multiple factors, including energy prices, upstream supply, and downstream demand. We will continue to monitor market dynamics, promptly update fluoroplastics price and industry application information, and provide valuable references for local fluoroplastics processing enterprises and downstream users in Guangzhou.