SunSirs: Anhydrous Hydrogen Fluoride Enterprises' Costs Were Inverted, and the Market Bottomed Out and Rebounded

Price trend

In early September, anhydrous hydrogen fluoride manufacturers experienced cost inversion, triggering a market correction. According to the SunSirs analysis system, as of September 1, the SunSirs benchmark price for hydrofluoric acid was 11,466.67 RMB/ton, a 7.67% increase from the end of August.

Analysis review

Raw material supply: Domestic fluorite supply was tight last week, leading to rising prices and high pressure on hydrogen fluoride costs. As of September 1st, the benchmark price of fluorite on SunSirs was 3,268.75 RMB/ton, up 4.18% from the price of 3,137.50 RMB/ton at the beginning of the previous month. The domestic fluorite industry remained competitive, with overall operating rates increasing. Upstream mining was tight, and outdated mines would continue to be phased out. Mineral surveys for new mines 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 were also limiting fluorite production. The continued high price of fluorite was putting pressure on hydrofluoric acid costs, leaving manufacturers facing continued losses and an inverted cost structure. Hydrofluoric acid prices had bottomed out and were recovering.

On the demand side, downstream companies were experiencing strong bullish sentiment amid the traditional peak season of September and October. Some downstream companies were gradually increasing their raw material inventories, but due to capital flows, only small orders were increasing gradually. Most companies were still focusing on replenishing inventory based on essential needs. Hydrogen fluoride prices are expected to be stronger in the short term.

Future outlook:

Rising prices for raw material fluorite were putting pressure on hydrofluoric acid costs, putting manufacturers under pressure to maintain profitability. Downstream demand wass stagnant, with only small orders signed. The anhydrous hydrogen fluoride market is expected to continue its stronger trend in the future. Further attention needs to be paid to market supply and demand changes.

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