SunSirs: The Hydrogen Fluoride Market Continued to Operate in a Weak and Stable Manner

Price trend

The August bidding price for hydrogen fluoride fell by 100-200 RMB/ton compared to the previous month. According to the SunSirs analysis system, as of August 20, the SunSirs benchmark price for hydrofluoric acid was 10,650 RMB/ton, a decrease of 1.39% from the end of July.

Analysis review

Raw material side: Domestic fluorite prices rose last week, and the cost of hydrogen fluoride was under high pressure. As of August 20th, the benchmark price of fluorite on SunSirs was 3,181.25 RMB/ton, up 1.39% from 3,137.50 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 Upstream mining was tight, and outdated mines continued to be phased out. For new mines, mineral surveys remained challenging. Furthermore, national authorities were requiring fluorite mines to undergo rectification, and fluorite mining companies were facing increasingly stringent safety and environmental protection requirements. This made it more difficult to resume operations, and raw material shortages were limiting fluorite production. The continued high price of fluorite was putting pressure on hydrofluoric acid costs, and producers remained under pressure to incur losses. Purchasing sentiment for high-priced fluorite raw materials was subdued. It is expected that hydrofluoric acid prices will continue to consolidate weakly.

Demand side: The terminal demand in the downstream refrigerant market was weak, and the enthusiasm for stocking up was low. Upstream products were mainly purchased on demand, and there was a strong wait-and-see sentiment. The market trading atmosphere was cold, and some companies reduced their demand for raw materials due to profit losses.

Market outlook

The price of raw material fluorite rose, the cost of hydrofluoric acid was under high pressure, production companies were still under pressure of losses, downstream terminal demand was weak, and market trading was sluggish. The anhydrous hydrogen fluoride market is expected to continue its weak consolidation trend in the future. Further attention should be paid to market supply and demand changes.

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