In March, the Cost Pressure of Hydrofluoric Acid and Rigid Demand Compete, Market Prices Slightly Increase

March 4th News

In March, the cost pressure of hydrofluoric acid and rigid demand are in a tug-of-war, with market prices slightly increasing. According to the analysis system, as of March 4th, the benchmark price of hydrofluoric acid in China was 13,166.67 CNY/ton, an increase of 0.77% from last month.

On the raw material side: The supply of fluorite, a key raw material, remains tight, putting upward pressure on prices. The delayed resumption of operations at some fluorite facilities has led to an overall tightening of the market’s raw material supply. Coupled with factors such as mine safety inspections, the available spot supply of fluorite is limited, and holders are reluctant to sell at lower prices. According to analysis system data, as of March 4, the benchmark price for fluorite stood at 3,431.25 CNY per ton, unchanged from the beginning of this month. Meanwhile, sulfuric acid prices have been on a continuous upward trend, playing a significant role in driving up the production costs of hydrogen fluoride. As a critical raw material, the rising price of sulfuric acid directly increases manufacturing costs for hydrogen fluoride producers, squeezing profit margins. According to analysis system data, as of March 4, the benchmark price for sulfuric acid was 1,092.50 CNY per ton, up 3.31% from the beginning of this month (1,057.50 CNY per ton). Overall, upstream costs continue to rise, while the selling price of hydrogen fluoride has shown little upward momentum. As a result, the number of loss-making hydrogen fluoride producers is expected to keep expanding. Although manufacturers remain strongly inclined to hold prices, their ability to raise prices is constrained by weak demand.