July Hydrofluoric Acid Market Weak Demand, Prices Trend Downward

July 31 News

July saw weak demand in the hydrofluoric acid market, with a decline in price trends. The operating rate of the Chinese hydrogen fluoride market in July was 50.6%, a decrease of 3.1 percentage points from June. According to the analysis system, as of July 31, the benchmark price of hydrofluoric acid was 10,800 CNY/ton, a decrease of -2.99% from June.

On the raw material side, China's fluorite prices continued to decline in July. As of July 30, the benchmark price for fluorite was 3,137.50 CNY/ton, down 1.38% compared to the beginning of the month (3,181.25 CNY/ton). The fluorite industry in China still faces ongoing competition. Overall, enterprise operating rates have slightly increased, but upstream mining operations remain tight. Outdated mines will continue to be phased out, while new mine exploration remains challenging. Additionally, national departments are implementing rectification measures for fluorite mines, imposing increasingly stringent safety and environmental requirements on fluorite mining enterprises, which increases operational difficulties. Raw material shortages limit fluorite enterprises' ability to operate at full capacity. However, as temperatures rise and northern enterprises gradually resume operations, the supply of fluorite from local enterprises has increased, resulting in sufficient inventory. Consequently, the center of gravity for fluorite market prices has shifted downward, and weak cost support from hydrofluoric acid has led to a decline in hydrofluoric acid prices in July.

Demand side: Although the downstream refrigerant market is in its traditional peak season, due to weak terminal demand and low inventory-building enthusiasm, upstream products are mainly purchased on a "just-in-time" basis. Market sentiment remains cautious, trading activity is sluggish, and some enterprises have even reduced their raw material demand due to profit losses. Downstream refrigerant demand is moderate, and the price of hydrofluoric acid continues to decline.

Post-market forecast: In July, China's fluorite prices continued to decline due to weak downstream terminal demand and lack of positive supply-demand support, resulting in sluggish market transactions. It is expected that anhydrous hydrogen fluoride prices will continue to fall in August, with a downward adjustment of around 200 CNY per ton. Further attention should be paid to news from leading enterprises as well as the overall market supply and demand situation.