SunSirs: Domestic Market Price of Hydrofluoric Acid Declined Slightly on 11th November

On November 10^th, the hydrofluoric acid commodity index was 87.48, which was the same as yesterday. It was 37.71% lower than the highest point in the period at 140.43 (since 21^st February 2018). And it was 63.24% higher than the lowest point at 53.59 since 30^th November 2016 (Note: The period refers to since 1^st September 2011).

According to data from SunSirs, the domestic market price of hydrofluoric acid is slightly low. Up to now, the domestic market price of hydrofluoric acid is RMB 9,600 yuan/ton. The operating rate of this kind of factory is less than 60%. The company reflects that the current supply of hydrofluoric acid is sufficient within the spot market. Recently, the stock of hydrofluoric acid has not flowed. The demand of downstream keeps down and some of hydrofluoric acid manufacturers have stagnated prices. The market price of it has remained low. At present, the mainstream price of hydrofluoric acid in the southern region is about RMB 9,000-9,500 yuan/ton, and the price of it in the northern market is RMB 9,000-10,000 yuan/ton. The domestic market price of hydrofluoric acid remains at a low level, and the supply of spot goods are sufficient, but the demand was poor.

The upstream market –fluorite, its price remained at a low level. Till 10^th November, the price of fluorite was RMB 2,861.11 yuan/ton. The fluctuation of raw material price brought limited support to the hydrofluoric acid market. Therefore, the market price of hydrofluoric acid was slightly lower due to the low price of fluorite. Recently, the market for terminal downstream—refrigerants is generally low. The domestic refrigerant R22 price remains low. On the supply side, the refrigerant R22 market continues to be weak. The production load reduces significantly, and the decrease of market supply capacity ensues, which also help ease the pressure of inventory. On the demand side, downstream players – air conditioner manufacturers have their plant maintained. Demand is reduced, and the price of domestic large enterprises is at RMB 1,200-13,000 yuan/ton. The domestic R134a market price trend is at a low level. The operating rate of production enterprises keeps at a low level. The demand for refrigerants is decreasing, and the manufacturers are mainly export-oriented. However, the transaction price on the market continues to fall, and the merchants purchases exactly based on demand. At the end of the peak season, the downstream demand of the terminal only decreased, and the market price of hydrofluoric acid declined. However, the transaction price in the market was lower, and the merchants purchased on demand. Recently, with normal supply of goods and not improving demand, the market price of hydrofluoric acid goes slightly low.

Overall, transactions in refrigerant field are generally fair. The operating rate of the refrigerant industry equipment is low, and the demand for the upstream hydrofluoric acid market is limited. However, the supply of hydrofluoric acid is sufficient. The hydrofluoric acid manufacturers reflect a loss is quite serious. SunSirs analyst Chen Ling believes that the market price of hydrofluoric acid may shock at a low level, but it will increase in the long term.

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