Strong Cost Support Drives Robust Rise in Anhydrous Hydrogen Fluoride Market

April 1st news

Entering April, the Chinese anhydrous hydrogen fluoride (AHF) market has seen a significant strong upward trend. According to the latest market data, the delivered price of hydrogen fluoride in the Jiangsu and Zhejiang regions in April increased by 1,500 CNY/ton compared to the previous month. The core driving force behind this price surge is mainly due to strong cost pressures. According to the analysis system, as of April 1st, the benchmark price of hydrofluoric acid was 14,666.67 CNY/ton, an increase of 11.39% from the end of last month.

Raw Materials: The price of fluorite, a key raw material, has risen. Affected by an accident at a fluorite mine in Zhejiang Province, the entire province has initiated shutdowns for safety inspections, which have also impacted neighboring production areas such as Jiangxi. As the resumption of production and work has been delayed until mid-April or even after the "May Day" holiday, the tight supply situation on the raw materials side has further intensified. Market participants are strongly inclined to hold onto their stocks and resist selling at lower prices, leading to tentative upward adjustments in quoted prices. Meanwhile, sulfuric acid prices remain persistently high due to ongoing tight supplies of upstream sulfur, driving up production costs. Coupled with low sulfuric acid inventories and planned maintenance at some enterprises, the supply remains constrained. Overall, the sustained pressure on upstream costs has severely squeezed profit margins for hydrofluoric acid producers; some enterprises have even fallen into loss-making territory. This fundamental factor significantly limits the room for hydrofluoric acid prices to decline and fuels market expectations of price increases. According to analysis systems, as of April 1, the benchmark price of fluorite stood at 3,556.25 CNY per ton, up 3.64% from the beginning of last month (3,431.25 CNY per ton). The benchmark price of sulfuric acid reached 1,580.00 CNY per ton, representing a 49.41% increase compared to the beginning of last month (1,057.50 CNY per ton).

On the demand side: Downstream refrigerant manufacturers are gradually entering the traditional peak production season, and demand for certain refrigerant models remains relatively strong. However, buyers remain cautious and are not very receptive to high-priced raw materials. Most purchases are made on an as-needed basis to replenish inventory, resulting in generally moderate market transaction volumes.

Outlook: With high prices of raw materials such as fluorspar and sulfuric acid providing support, downstream buyers in China are cautious, mainly replenishing stocks according to demand, and are not very receptive to high-priced raw materials. It is expected that the market price of anhydrous hydrogen fluoride in China may mainly consolidate in the short term. More attention needs to be paid to changes in market supply and demand.