With the in-depth development of the new energy automobile sector, the market has begun to increase the in-depth mining of all links of the industrial chain. Recently, the continuous daily limit trend of Lianchuang shares has aroused the market's attention to the concept of polyvinylidene fluoride (PVDF).

Analysts said that the rapid growth of lithium demand and the industry's long expansion cycle have brought about the current tight supply and demand situation in the PVDF industry. Some institutions are expected to lithium PVDF supply tension may continue to the second half of next year.

PVDF concept wind mouth

On July 7, the A-share market new energy automobile industry leading stock Ningde times rose more than 5%, the stock price hit A record high. PVDF concept stocks show a strong explosive power, Lianchuang shares staged a 20% daily limit for three consecutive days, a cumulative rise of 72.92%; Lonstar Chemical also rose by the daily limit for three consecutive days.

PVDF is a thermoplastic fluoropolymer with excellent performance and a wide range of uses. In the past, it was mainly used in coating, injection molding and other markets. In recent years, with the rapid development of new energy industry, photovoltaic backplane, fluorocarbon coatings, lithium battery binders and membranes have become the main application areas of PVDF. Among them, lithium battery binders have become the fastest growing areas of PVDF downstream applications. Some institutions are expected that the total demand for PVDF lithium battery binders in China will be about 22,000 tons in 2021.

CITIC Construction Investment research report shows that PVDF expansion cycle is long, generally more than 2 years, and most of the new production capacity of enterprises is still in the planning or approval stage, 2021 is expected to be only 8000 tons of Lianchuang shares of new production capacity, lithium battery binder with PVDF capacity is still very limited, The growth rate of production capacity is less than the significant growth of downstream demand.

China Merchants Securities said that the total amount of lithium PVDF this year and next year may reach 20,000 tons and 29,000 tons respectively, and the industry expects the tight supply of lithium PVDF may continue to the second half of next year.

Demand for new energy vehicles

PVDF industry supply and demand is tight, the main reason is the outbreak of demand for new energy vehicles.

Data show that from January to May 2021, the production and sales of new energy passenger vehicles were 914,800 and 898,200, respectively, an increase of 244.76% and 244.99%. Compared with the data from January to May 2019, an increase of 107.39% and 111.05%, respectively.

China's new energy vehicle sales will exceed 2 million units in 2021, up 46.32 percent year on year, according to the latest forecast data from the Passenger Federation. China is expected to sell 6 million new energy vehicles in 2025 and 17.5 million in 2035.

Industry insiders said that with the continuous improvement of the quality of new energy vehicle products in the past two years, the market space has gradually opened up. In the A-share market, the new energy automobile industry chain has become the main line of the current market with its large growth space and strong certainty. For its investment opportunities, Shanghai Securities said that it focuses on battery and battery material enterprises with good competition pattern in the industrial chain and among the global supply chain, non-ferrous metal targets with high performance elasticity in the upstream and some elastic varieties with tight supply and demand and continuous bullish product prices.

Dongguan Securities said that the new energy automobile industry chain is entering a long period of high growth, and the future performance is expected to continue to cash in. It focused on the supply chain of global leading enterprises such as Ningde Times, LG Chemical, Tesla and Volkswagen MEB platform.

Chuancai Securities suggested to pay attention to two main lines: one is the link with strong short-term profit certainty or smooth cost transmission; The second is obvious competitive advantages, binding core customers, and leading enterprises in all aspects of long-term industry expansion.