Movement Alert|Dongyue Group Rises 8.36% in Regular Trading, US and UK Extension of HFCs Usage Period Continues to Catalyze

Market Focus06-02

On June 2, Dongyue Group rose 8.36% in regular trading, trading at HK$18.14/share, with trading volume of HK$359 million, extending its recent strong momentum with year-to-date cumulative gains exceeding 60%.

On the news front, the US EPA formally signed and published final rules under the AIM Act that substantially extend the legal usage life of third-generation refrigerants (HFCs) in the US by significantly relaxing GWP limits across multiple core sub-sectors. Concurrently, the UK Department for Environment, Food and Rural Affairs announced a postponement of its proposed fluorinated gas phase-down steps. Analysts note that the essence of these policy shifts is that European and American markets face HFC supply shortages, necessitating regulatory relaxation to safeguard domestic demand.

Since global HFCs production capacity is predominantly concentrated in China, with domestic quotas capped at only 797,800 tons and supply growth near zero, overseas demand extension combined with sustained domestic refrigerant price increases suggests a global refrigerant restocking cycle may be forming. Dongyue Group, as a fluorochemical leader with its under-construction R32 project set to bring total capacity to 120,000 tons, holds significant quota advantages and is expected to benefit substantially.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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