Core Viewpoint - The special engineering plastics industry in China, particularly the production of 4,4'-difluorobenzophenone (DFBP), is experiencing rapid growth, with significant increases in production, demand, and market size projected for 2024 [1][10]. Industry Overview - DFBP is a crucial fluorinated organic fine chemical product and pharmaceutical intermediate, primarily synthesized through methods such as Friedel-Crafts acylation and diazotization oxidation [2][4]. - The upstream supply chain for DFBP includes various raw materials like fluorobenzene and hydrogen fluoride, with China being a major producer, ensuring sufficient domestic supply [4]. Demand Structure - The PEEK sector is the largest market for DFBP in China, accounting for over 90% of demand in 2024, with approximately 0.8 tons of DFBP required to produce 1 ton of PEEK [6][10]. - The medical intermediate sector is a smaller but growing application for DFBP, driven by the expanding pharmaceutical industry and aging population [8]. Market Size and Growth - In 2024, China's DFBP production is expected to reach 5,150 tons, with a demand of 3,121.3 tons and a market size of approximately 39,523.9 million yuan, translating to an average price of about 127,000 yuan per ton [10]. - The global DFBP market is projected to reach 1.175 billion yuan in 2024, with Asia and Europe accounting for 48.77% and 44.51% of the market, respectively [8]. Competitive Landscape - The DFBP market in China is highly concentrated, with leading companies like Xinhang New Materials and Zhongxin Fluorine Materials holding over 80% of the market share [12]. - Zhongxin Fluorine Materials is the largest player, capturing more than 30% of the market, followed by Xinhang New Materials and Xingfu New Materials [12]. Company Analysis - Zhongxin Fluorine Materials reported a total revenue of 1.028 billion yuan and a gross profit of 97 million yuan in the first three quarters of 2024, with a gross margin of 9.4% [14]. - Xinhang New Materials achieved a revenue of 209 million yuan in the first half of 2024, with 92 million yuan coming from its core raw materials for special engineering plastics, representing 44% of total revenue [16]. Development Trends - Future advancements in DFBP synthesis will focus on optimizing processes, developing new catalysts, and implementing automation and green technologies [18]. - Collaboration between DFBP manufacturers and downstream PEEK producers is expected to increase, enhancing product practicality and ensuring stable revenues for DFBP manufacturers [18].