Terminal Demand Weak, Hydrogen Fluoride Market Operates Steadily

August 13th, news:

In August, the tender price of hydrogen fluoride fell by 100-200 CNY/ton compared to the previous month. According to the analysis system, as of August 13, the benchmark price of hydrofluoric acid was 10,650 CNY/ton, a decrease of -1.39% from the end of July.

Raw Material Side: This week, China's fluorite prices remained stable, while hydrogen fluoride costs continued to face high pressure. As of August 13, the benchmark price for fluorite was 3,156.25 CNY/ton, an increase of 0.60% compared to the beginning of this month (3,137.50 CNY/ton). The current situation in China's fluorite industry remains competitive; overall, enterprise operating rates have slightly increased. However, upstream mining operations remain tight, with backward mines continuing to be phased out. Regarding new mines, mineral exploration work continues to face significant challenges. Additionally, national authorities are implementing reforms on fluorite mines, imposing increasingly stringent safety and environmental requirements on fluorite mining enterprises, which increases operational difficulties and restricts fluorite supply. The sustained high fluorite prices continue to put pressure on hydrogen fluoride production costs, leaving manufacturers still under loss-making conditions and maintaining a cautious attitude toward purchasing expensive fluorite raw materials. It is expected that the hydrogen fluoride industry will continue to operate mainly in a weak and consolidating manner.

Demand side: Terminal demand in the downstream refrigerant market is weak, with low inventory-building enthusiasm. Upstream products are mainly purchased on a "just-in-time" basis, and there is a strong wait-and-see attitude. Market trading activity is sluggish, and some enterprises have even reduced their raw material demand due to profit losses.

Market forecast: Raw material fluorite prices remain strong at high levels, while hydrofluoric acid costs face downward pressure. Production enterprises still face profit-loss pressures, and downstream terminal demand remains weak, leading to sluggish market transactions. It is expected that the anhydrous hydrogen fluoride market will likely continue its weak consolidation trend in the future. More attention should be paid to changes in market supply and demand.