Weak demand leads to consolidation in China's anhydrous hydrogen fluoride market

January 20th, News

The current market for anhydrous hydrogen fluoride is in a tug-of-war between "cost-driven" and "demand-suppressed" factors. According to the analysis system, as of January 20th, the benchmark price of hydrofluoric acid was 13,033.33 CNY per ton, unchanged from the beginning of the month.

Raw Materials Side: This week, the prices of raw materials—fluorite and sulfuric acid—remained stable. Although raw material prices are steady, they continue to provide strong cost support for anhydrous hydrogen fluoride, thereby limiting the room for a significant price decline. According to analysis systems, as of January 20, the benchmark price of fluorite stood at 3,406.25 CNY per ton, up 0.18% from the beginning of this month (3,400.00 CNY per ton).

On the demand side: As the year draws to a close, the downstream refrigerant industry has nearly exhausted its production quotas, resulting in generally weak demand and a focus on procurement based on actual needs. Most players are adopting a wait-and-see approach, with relatively low purchasing enthusiasm. Market prices lack upward momentum, and for the short term, operations will mainly involve fulfilling contracted orders and maintaining a relatively stable status quo. It is expected that anhydrous hydrogen fluoride will likely remain in a consolidation phase in the later period.

Market Forecast: The prices of raw materials—fluorspar and sulfuric acid—are expected to remain stable, though they still offer some support. However, downstream demand remains weak, with purchasing driven primarily by essential needs, thus weakening demand-side support. We anticipate that the market price of anhydrous hydrogen fluoride will likely consolidate in the near term. Further attention should be paid to changes in market supply and demand.