SunSirs: The Domestic Hydrofluoric Acid Market Saw a Slight Rise Last Weekend (July 6-10)

Price trend

Last week, the domestic price of anhydrous hydrogen fluoride edged up as spot market supplies tightened significantly due to temporary production halts at major manufacturing plants. According to the SunSirs monitoring and analysis system, the benchmark price for hydrofluoric acid stood at 15,600 RMB/ton as of July 10, marking a 0.86% increase since the beginning of the month.

Analysis and Commentary

On the raw material front, the price of fluorspar saw a slight increase, while the price of sulfuric acid—another key raw material—remained at a high level, providing some cost support for hydrofluoric acid. Overall, the slight rise in fluorspar prices and the sustained high price of sulfuric acid have bolstered the cost structure for anhydrous hydrogen fluoride. According to the SunSirs analysis system, the benchmark price for fluorspar stood at 3,375.00 RMB/ton as of July 10, representing a 0.55% decrease compared to the beginning of the month (3,393.75 RMB/ton).

Supply side: Jin'ebo Fluorochemical, a holding subsidiary of Jinshi Resources, has temporarily suspended production. The sudden halt of a facility with a monthly capacity of 20,000 tonnes has directly caused a substantial market supply shortage. Panic buying by downstream enterprises and a reluctance to sell among upstream producers have further driven up prices.

Demand side: Downstream demand is sluggish, lacking upward momentum and showing a marked contraction. Spot purchasing is largely limited to replenishing stocks on an as-needed basis, with little appetite for stockpiling. Hindered by a lack of transmission from end-user consumption, the actual pace of market sales remains slow, and speculative demand within the trading sector is also suppressed.

Market Outlook:

Analysts at SunSirs predict that the domestic market for anhydrous hydrogen fluoride will likely remain stable with a bullish bias in the short term. This outlook is supported by the persistently high prices of raw materials—specifically sulfuric acid and fluorspar—which provide a solid cost-side floor, alongside tight spot supplies resulting from temporary production halts at some major plants. Moving forward, attention should be focused on potential marginal shifts driven by raw material and supply-side factors, as well as the external procurement activities of major downstream enterprises.

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