Chinese Hydrofluoric Acid Market Shows a Steady and Slightly Strong Trend

September 10, News

Recently, the operating load of hydrofluoric acid enterprises in China has decreased, with rising raw material costs and tight inventory, leading to a continuous increase in cost pressure. However, downstream terminal demand is moderate, and the acceptance of high-priced raw materials is low, with procurement still mainly driven by rigid demand. Overall, the hydrofluoric acid market in China shows a stable but slightly strong trend. According to the analysis system, as of September 10th, the benchmark price of hydrofluoric acid was 11,466.67 CNY per ton, an increase of 7.67% from the end of August.

On the raw materials front: This week, China's fluorite supply remained tight, driving prices higher and putting significant upward pressure on hydrogen fluoride costs. As of September 10, the benchmark price for fluorite stood at 3,318.75 CNY per ton, up 1.53% from the beginning of the month (3,268.75 CNY/ton). Meanwhile, market dynamics in China's fluorite industry persist, with overall plant operating rates showing a modest increase. However, upstream mining operations remain constrained, as older, less efficient mines continue to be phased out. On the positive side, exploration efforts for new fluorite deposits continue to face substantial challenges. Additionally, ongoing government initiatives aimed at upgrading and regulating fluorite mines have intensified, placing stricter safety and environmental demands on existing mining companies. These tightening regulations are making it increasingly difficult for fluorite mines to resume operations, further exacerbating the scarcity of raw materials and limiting production capacity among fluorite firms.

The sustained high prices of fluorite are now weighing heavily on hydrogen fluoride production costs, leaving manufacturers under persistent financial strain as cost pressures continue to outpace revenues. As a result, producers are likely to face mounting losses, with some even experiencing outright cost inversions. Looking ahead, hydrogen fluoride producers are expected to maintain their upward pricing trend in the near term.

On the demand side: Downstream market demand is showing structural divergence. While there’s strong upward momentum in the markets for mainstream refrigerants R134a and R32, the R22 product is experiencing a subdued trading atmosphere, with sluggish purchasing activity and weak terminal demand—driving a focus on essential, immediate restocking needs rather than broader market engagement. Overall, demand remains steady to moderately supportive of hydrogen fluoride prices, and we expect the price trend for hydrogen fluoride to continue its upward trajectory in the near term.

Market Forecast: With rising prices of fluorite raw materials, hydrogen fluoride producers continue to face high cost pressures, leaving companies still under financial strain. Meanwhile, downstream terminal demand remains modest, with most transactions consisting of small-scale orders only. As a result, the anhydrous hydrogen fluoride market is expected to maintain its relatively strong trend in the near term. Further attention should be paid to shifts in market supply and demand dynamics.