SunSirs: Hydrofluoric Acid: High-End Electronic Grade in Short Supply; South Korea Scrambles for Stock as Prices Remain Elevated

Electronic-grade hydrofluoric acid (EG-HF) is an indispensable core material for cleaning and etching processes in the manufacturing of semiconductors, photovoltaics, and display panels. The industry is currently characterized by a confluence of four major trends: a severe shortage of high-end products, an overcapacity of low-end products, aggressive purchasing by overseas buyers, and surging production costs. South Korean semiconductor manufacturers have been flocking to China to procure supplies, further exacerbating domestic supply tightness and driving hydrofluoric acid prices on a continuous upward trajectory.

I. International Supply & Demand and Overseas Buying Spree

Due to limited domestic production capacity and high operating costs in South Korea, manufacturers began procuring anhydrous hydrofluoric acid from China on a large scale starting in May for subsequent purification into electronic-grade products. This surge in demand has driven domestic anhydrous hydrofluoric acid prices up by approximately 40% compared to the beginning of the year. The global supply gap for G5 (7N) high-end electronic-grade hydrofluoric acid currently exceeds 70%, establishing China as the primary stable supplier in the Asian region and resulting in a continuous concentration of overseas orders toward domestic manufacturers.

II. 2026 Import and Export Data

According to customs data, exports of hydrofluoric acid and related fluorides totaled 45,000 tons during the first quarter of 2026 (January–March), representing a year-on-year increase of 33%. Exports for the month of March alone reached 18,000 tons, up 41% year-on-year. Meanwhile, import volumes continued to contract, totaling 6,800 tons in the first quarter—a year-on-year decline of 28%. This pattern—characterized by a significant surge in exports and a sharp drop in imports—demonstrates a marked improvement in both domestic self-sufficiency and export supply capabilities.

III. Domestic Capacity and Production Output

China's total domestic production capacity for anhydrous hydrofluoric acid stands at approximately 6 million tons per year, with an effective capacity of roughly 100,000 tons per year dedicated to electronic-grade products. Of this electronic-grade capacity, the high-end G5 (7N) segment accounts for a mere 25,000 to 30,000 tons per year. In April 2026, the production output of electronic-grade hydrofluoric acid saw a slight year-on-year decline. The overall industry operating rate hovered between 65% and 70%; while high-end production lines operated at full capacity, low-end facilities maintained lower operating rates due to production restrictions and financial losses.

IV. Today's Spot Prices and Market Fluctuations (May 19)

As of today, the domestic hydrofluoric acid market remains firm at elevated price levels, with high-end products recording particularly significant price increases. SunSirs Anhydrous Hydrofluoric Acid Benchmark Price: 15,100.00 RMB/ton.

The quoted price for Electronic Grade (G5) material stands at 110,000 RMB/ton—an increase of +40% compared to the beginning of the year.

Prices are exhibiting a pattern of surging growth at the high end while remaining stable at the low end, reflecting a distinct structural divergence within the market.

V. Upstream, Downstream, and Cost Factors

Upstream: Fluorite supply is tight, with prices ranging from 3,100 to 3,300 RMB/ton. Sulfur prices have skyrocketed to 7,250 RMB/ton due to the geopolitical situation in the Middle East; this surge has driven a significant rise in sulfuric acid prices. Consequently, the cost contribution of sulfuric acid to the total production cost of hydrofluoric acid has risen from 30% to over 50%, creating strong upward pressure on overall production costs. Downstream: Demand from the semiconductor and photovoltaic sectors remains robust, with procurement activity at extremely high levels and orders booked through the second half of the year. Demand from the display panel sector remains steady, contributing to strong overall sales performance.

VI. Future Market Outlook

Driven by high production costs, intense overseas purchasing competition, and a shortage of high-end supply, prices are expected to continue their strong upward trajectory. Supply of G5-grade material, in particular, will remain extremely tight, ensuring the industry maintains a state of high prosperity and high gross margins.

However, G5-grade material is expected to remain in short supply until at least 2027, resulting in a significant upward shift in the average price level for the year as a whole.

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