August Hydrofluoric Acid Market Prices Weakly Decline

August 29 update

In August, the hydrofluoric acid market experienced weak demand, leading to a downward trend in prices. According to analysis systems, as of August 29, the benchmark price for hydrofluoric acid stood at 10,650 CNY per ton, representing a decrease of -1.39% compared to July.

On the raw material front, China's fluorite prices continued their upward trend in August, reaching an average of 3,268.75 CNY per ton by month-end—up 3.77% from the beginning of the month (3,150 CNY/ton) but still down 7.62% year-on-year. The Chinese fluorite industry remains marked by ongoing market dynamics: while overall plant operating rates have slightly increased, supply constraints persist due to tight conditions at upstream mining operations. Outdated mines are gradually being phased out, while developing new mines continues to face significant challenges, particularly in conducting thorough mineral exploration. Additionally, government regulations aimed at upgrading and restructuring fluorite mines have intensified, placing stricter safety and environmental standards on operators. As a result, fluorite producers now face mounting pressures to meet these rigorous requirements, further complicating mine operations.

Despite these challenges, some northern regions have resumed normal production as temperatures rise, though overall market supply levels remain relatively stable. Meanwhile, certain fluorite manufacturers are maintaining higher price levels and holding onto their inventories, reluctant to release goods into the market. This cautious approach has contributed to the upward momentum in the fluorite market during August.

Meanwhile, hydrogen fluoride producers are grappling with persistently high costs, putting significant financial strain on their operations. In response, many hydrogen fluoride companies have reduced their production rates, leading to weaker pricing trends and downward pressure on the market.

On the demand side: Although the downstream refrigerant market is currently in its traditional peak season, downstream terminal demand remains weak, leading to subdued inventory-building activities. As a result, upstream suppliers are primarily selling products on a "just-in-time" basis, with buyers adopting a cautious, wait-and-see approach. This has created a lukewarm trading atmosphere, and some companies have even cut back on their raw material purchases due to shrinking profit margins. Overall, downstream refrigerant demand is moderate, while the price of hydrofluoric acid continues to decline amid weak market conditions.

Market Forecast: In August, China's fluorite prices remained under significant pressure at high levels, despite strong cost support. Meanwhile, downstream terminal demand remained weak, leading to sluggish trading activity and widening losses for businesses. However, we expect the anhydrous hydrogen fluoride market price to rebound in September, with prices likely to rise rather than fall. Moving forward, it will be crucial to monitor developments from industry leaders as well as shifts in market supply and demand dynamics.