In March, the high cost of hydrofluoric acid played a game of high pressure and rigid demand, leading to a slight adjustment in market prices. According to the analysis system of Shengyi Society, as of March 4th, the benchmark price of hydrofluoric acid in Shengyi Society was 13166.67 yuan/ton, an increase of 0.77% compared to the previous month.
Raw material side: The supply of raw fluorite is tight, and the price is under pressure at a high level. Due to the delayed resumption of work in some fluorite facilities, the overall supply of raw materials in the market is tight. Due to factors such as mine safety inspections, the circulation of fluorite spot goods is limited, and the willingness of holders to sell at low prices is insufficient. According to the analysis system of Shengyi Society, as of March 4th, the benchmark price of Shengyi Society’s fluorite was 3431.25 yuan/ton, unchanged from the beginning of this month. The price of sulfuric acid has shown a continuous upward trend, becoming an important force driving up the production cost of hydrogen fluoride. As a key raw material, the rising price of sulfuric acid directly increases the manufacturing cost of hydrogen fluoride enterprises and compresses profit margins. According to the analysis system of Shengyi Society, as of March 4th, the benchmark price of sulfuric acid in Shengyi Society was 1092.50 yuan/ton, an increase of 3.31% compared to the beginning of this month (1057.50 yuan/ton). Overall, the upstream cost side prices continue to rise, while the upward trend of hydrofluoric acid prices is weak, leading to an expected expansion of losses for hydrogen fluoride production enterprises. Although manufacturers have strong price support sentiment, price increases are limited by demand follow-up.
Demand side: Resumption of work and replenishment of inventory are parallel, but the procurement pace is relatively slow. The main downstream application areas of refrigerant enterprises are gradually resuming work and production, and the industry’s operating rate has increased. After experiencing a round of consumption, current refrigerant companies and intermediaries generally have low inventory, and there is a demand for urgent replenishment. But the overall procurement pace is slow, and the driving force for hydrofluoric acid prices is limited. Mainly to maintain production balance. It is expected that anhydrous hydrogen fluoride will maintain stable operation.
Market forecast: The price of raw material fluorite sulfuric acid is supported by high levels, while downstream demand is weak, with rigid demand procurement as the main focus and weak demand side support. Under the game of high cost and rigid demand, and with the market remaining stable and watchful, it is expected that the market price of anhydrous hydrogen fluoride will mainly maintain stable operation in the later stage. More attention should be paid to changes in market supply and demand.
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