Price trend

In March, the high cost of hydrofluoric acid and the interplay of rigid demand led to a slight price increase in the market. According to data from the SunSirs analysis system, as of March 4, the benchmark price of hydrofluoric acid was 13,166.67 RMB/ton, an increase of 0.77% compared to the previous month.

Market analysis

Raw material supply: Tight supply of fluorite put downward pressure on prices at high levels. Delayed resumption of operations at some fluorite plants led to an overall tight supply of raw materials in the market. Coupled with factors such as mine safety inspections, the spot market circulation of fluorite was limited, and holders were unwilling to sell at low prices. According to the SunSirs analysis system, as of March 4th, the SunSirs benchmark price for fluorite was 3,431.25 RMB/ton, unchanged from the beginning of the month. Sulfuric acid prices had shown a continuous upward trend, becoming a significant force driving up the production cost of hydrogen fluoride. As a key raw material, the rising price of sulfuric acid directly increases the manufacturing costs of hydrogen fluoride companies, squeezing profit margins. According to the SunSirs analysis system, as of March 4th, the SunSirs benchmark price for sulfuric acid was 1,092.50 RMB/ton, an increase of 3.31% compared to the beginning of the month (1,057.50 RMB/ton). Overall, upstream costs continued to rise, while the price of hydrofluoric acid was struggling to increase. This is expected to lead to a further widening of losses for hydrogen fluoride producers. Although manufacturers were strongly inclined to maintain prices, their ability to raise prices was limited by the demand situation.

On the demand side: Resumption of work and restocking were proceeding simultaneously, but the pace of procurement was slow. Downstream refrigerant companies in major application sectors were gradually resuming production, leading to an increase in industry operating rates. After a round of consumption, the efrigerant companies and intermediaries generally had low inventory levels and a need for restocking. However, the overall procurement pace was slow, limiting its impact on hydrofluoric acid prices. The focus is primarily on maintaining production balance. Anhydrous hydrogen fluoride prices are expected to remain stable.

Market outlook

High prices for raw material fluorite sulfuric acid provided support, while downstream demand remained weak, with purchases primarily driven by immediate needs, thus weakening demand-side support. Amidst the interplay of high costs and immediate demand, the market is expected to remain stable with a wait-and-see attitude. Further attention should be paid to changes in market supply and demand.

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