July 29th, according to the news,
In July, the Chinese anhydrous hydrogen fluoride market showed an upward trend. Due to the temporary shutdown of a major factory in the north, the market supply was significantly tight, leading to an upward shift in the negotiation focus in August, with a general increase of 600 CNY per ton. According to the monitoring and analysis system, as of July 29, the benchmark price of hydrogen fluoride was 16,300 CNY per ton, an increase of 5.39% from early July.
Raw Materials: In July, the market for fluorite—a key raw material—showed a generally strong and stable trend. Affected by the tightening of safety inspections at Chinese mines, numerous mining operations in major producing regions such as Zhejiang, Fujian, Henan, and Hebei have been temporarily shut down for rectification, leading to a continued contraction in the supply of China’s raw fluorite. Additionally, fluorite mines in Mongolia, which are major import sources, suspended production for maintenance in mid-July, causing a temporary decline in the volume of imported fluorite arriving at ports. As a result, both domestic and international supply sources have tightened simultaneously. However, hydrogen fluoride producers are operating at only about 50% capacity, with most suffering severe losses. Consequently, their demand for upstream fluorite is primarily driven by essential needs, and they are keen to keep prices low, thereby somewhat restraining further increases in fluorite prices. Meanwhile, the market for sulfuric acid—a complementary raw material—exhibited mixed price movements in July but remained generally at high levels, providing some support to the cost side of hydrogen fluoride production. Overall, the rising price of fluorite and the sustained high level of sulfuric acid prices are providing cost support for anhydrous hydrogen fluoride. According to analysis systems, as of July 29, the benchmark price for fluorite stood at 3,418.75 CNY per ton, up 0.74% from the beginning of the month (3,393.75 CNY per ton).
Supply side: July is typically a period of low demand, and many hydrofluoric acid producers in China had planned maintenance schedules, with industry operations already reduced to around 50%. However, major producers in North China were suddenly forced to halt production due to unforeseen circumstances, causing the industry's operating rate to plummet further to about 43%. Although there was some recovery in late July, it only increased to around 45%. The sharp reduction in supply led to a continuous rise in the price of hydrofluoric acid.
On the demand side: July marks the traditional off-season for refrigerant demand, during which downstream air-conditioner production has declined compared to the peak season, resulting in generally subdued trading activity in the refrigerant market. Prices of key refrigerants—R32, R125, and R134a—have experienced a high-level pullback, with companies primarily focused on fulfilling earlier orders and seeing limited growth in new orders. Constrained by quota policies, the supply side of refrigerants remains under control; however, the pace of rigid demand procurement at the end-user level has slowed down, weakening the ability to absorb upstream anhydrous hydrogen fluoride. Overall, in July, the refrigerant industry’s demand for hydrogen fluoride was mainly supported by essential, rigid needs, lacking any significant additional drivers, thereby exerting some downward pressure on hydrogen fluoride prices.
Market Forecast: Analysts predict that the rising prices of fluorite and the sustained high levels of sulfuric acid will provide cost support for anhydrous hydrogen fluoride prices. Additionally, temporary production halts at several major suppliers on the supply side have led to a tighter spot supply situation. We expect the Chinese anhydrous hydrogen fluoride market to remain stable with a slight upward bias in the short term. Further attention should be paid to potential marginal changes driven by developments on the raw material front, supply-side dynamics, and procurement trends among major downstream manufacturers.
