SunSirs: The Market Demand for Hydrofluoric Acid Weakened in July, With Prices Declining

Price trend

Demand for hydrofluoric acid weakened in July, leading to a downward trend in prices. The domestic hydrogen fluoride market operating rate was 50.6% in July, down 3.1 percentage points from June. According to the SunSirs’ analysis system, as of July 31, the SunSirs’ benchmark price for hydrofluoric acid was 10,800 RMB/ton, a decrease of 2.99% from June.

Analysis review

Raw material prices: Domestic fluorite prices continued to decline in July. As of July 30, the benchmark price of fluorite of SunSirs was 3,137.50 RMB/ton, down 1.38% from 3,181.25 RMB/ton at the beginning of the month. The domestic fluorite industry remained competitive, with overall operating rates increasing. Upstream mining was tight, and outdated mines will continue to be eliminated. For new mines, mineral surveys remained challenging. Furthermore, with national authorities requiring rectification of fluorite mines, fluorite mining companies faced increasingly stringent safety and environmental protection requirements, making it more difficult to resume operations. Raw material shortages had also limited fluorite operations. However, with rising temperatures, northern companies had gradually resumed operations, increasing supply and ample inventory. Fluorite market prices had fallen, and hydrofluoric acid costs had weakened, leading to a decline in hydrofluoric acid prices in July.

On the demand side: While the downstream refrigerant market was traditionally in its peak season, weak end-user demand led to low enthusiasm for stocking up. Purchases of upstream products were primarily 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 continued to decline.

Future outlook:

In July, the domestic fluorite price trend continued to decline, the downstream terminal demand was weak, there was no favorable support for supply and demand, and the market trading was sluggish. It is expected that the market price of anhydrous hydrogen fluoride will continue to decline in August, with a reduction range of about 200 RMB/ton. More attention should be paid to the news of leading companies and the market supply and demand situation.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.