SunSirs: With Strong Cost Support, the Anhydrous Hydrogen Fluoride Market Remained Firm and Trended Upward (December 22-26)

Price trend:

According to the analysis system of SunSirs, as of December 26th, the benchmark price of hydrofluoric acid was 12,733.33 RMB/ton, an increase of 1.6% compared to the price at the end of last month.

Market Analysis

Raw materials: Last week, the cost of sulfuric acid, a key raw material for anhydrous hydrogen fluoride, still provided some support. Although there was a slight decline, prices remained high, keeping cost pressure on hydrofluoric acid manufacturers. Fluorite prices remained weak but stable. Overall, the support from raw materials was still considerable, leading to a relatively strong market for anhydrous hydrogen fluoride. As of December 26th, the benchmark price of fluorite according to SunSirs was 3,362.50 RMB/ton, a decrease of 2.54% compared to the beginning of the month (3,450.00 RMB/ton).

Demand side: Main demand weakened: As the downstream refrigerant industry approached the end of the year, production quotas were nearly exhausted, resulting in overall weak demand, with purchases mainly based on immediate needs. Many companies were adopting a wait-and-see attitude, and purchasing activity was low. However, exports remained stable. Despite weak domestic demand, external demand provided some support. According to customs data, the export volume of anhydrous hydrofluoric acid in November was 18,400 tons, a month-on-month increase of 8.12%, and the average price also increased. The stability of the export market had, to some extent, alleviated the pressure of declining domestic demand. Anhydrous hydrofluoric acid is expected to remain firm to slightly stronger in the coming period.

Market Forecast:

The price of raw material fluorite remained weak but stable. Although sulfuric acid market prices had fallen, they were still at a high level, providing support. Hydrofluoric acid producers still faced cost pressures, and coupled with weak downstream demand, purchasing was mainly driven by essential needs, leading to a decline in overall demand. However, external demand still provided some support. It is expected that the price of anhydrous hydrogen fluoride will continue to rise slightly in the later period, with an increase of around 350 RMB/ton. Further developments will depend on changes in market supply and demand.

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