Price trend

In August, hydrofluoric acid market demand weakened, leading to a downward trend in prices. According to the SunSirs analysis system, as of August 29, the SunSirs benchmark price for hydrofluoric acid was 10,650 RMB/ton, a decrease of 1.39% from July.

Analysis review

Raw material prices: Domestic fluorite prices rose in August, reaching an average of 3,268.75 RMB/ton by the end of the month, up 3.77% from the price of 3,150 RMB/ton at the beginning of the month and down 7.62% year-on-year. The domestic fluorite industry remained competitive, with overall operating rates increasing. Upstream mining was facing tight supply, and outdated mines would continue to be eliminated. Mineral surveys for new mines remained challenging, and national authorities were implementing rectification measures for fluorite mines. Fluorite mining companies were facing increasingly stringent safety and environmental protection requirements, making it more difficult to operate. Raw material shortages had limited fluorite operations. However, rising temperatures had allowed northern companies to operate normally, and the supply of fluorite to domestic companies remained stable. Some fluorite manufacturers had adequate inventory, and fluorite mining plants were holding back on prices to ship goods. This led to a rise in fluorite market prices in August, putting pressure on hydrofluoric acid costs. This had intensified the pressure on companies to make losses, leading to a reduction in the operating rate of hydrofluoric acid companies and a weak price decline.

On the demand side: While the downstream refrigerant market was traditionally in its peak season, weak end-user demand had led to low enthusiasm for stocking up. Purchases of upstream products were mainly on-demand, with a strong wait-and-see attitude and a sluggish market. Some companies were even reducing their raw material demand due to profit losses. Downstream refrigerant demand was generally weak, and hydrofluoric acid market prices were declining.

Market outlook

In August, the domestic fluorite market price was under pressure at a high level, with strong cost support, weak downstream terminal demand, sluggish market trading, and continued increase in corporate losses. It is expected that the anhydrous hydrogen fluoride market price will bottom out and rebound in September, and prices will be easy to rise but difficult to fall. More attention should be paid to the news of leading companies and market supply and demand conditions.

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