The domestic market for anhydrous hydrogen fluoride trended upward in July. Driven by temporary production halts at major plants in the north and a resulting marked tightening of supply, price levels shifted upward in August, with a general increase of 600 RMB/ton. Data from the SunSirs monitoring and analysis system indicates that as of July 29, the benchmark price for hydrogen fluoride stood at 16,300 RMB/ton, up 5.39% from the beginning of the month.
Regarding raw materials: The fluorspar market in July showed a trend of consolidation with a bullish undertone. Due to tightened safety inspections at domestic mines, numerous operations in key producing regions—such as Zhejiang, Fujian, Henan, and Hebei—were suspended for rectification, causing a continued contraction in the circulation of domestic raw ore. This situation was compounded by mid-July maintenance shutdowns at Mongolian mines supplying the market, leading to a temporary drop in fluorspar import volumes; consequently, supplies from both domestic and foreign sources tightened simultaneously. However, operating rates at hydrofluoric acid plants hovered around only 50%, with most producers facing severe losses; their purchasing of upstream fluorspar was largely limited to essential needs, and their strong desire to drive down prices somewhat curbed further increases in fluorspar costs. Meanwhile, the market for sulfuric acid—another key raw material—saw mixed fluctuations in July but remained at a high level overall, providing some cost support for hydrofluoric acid production. In summary, the rise in fluorspar prices and the high price level of sulfuric acid provided cost-side support for anhydrous hydrogen fluoride prices. Data from the SunSirs analysis system indicates that as of July 29, the benchmark price for fluorspar stood at 3,418.75 RMB/ton, marking a 0.74% increase compared to the beginning of the month (3,393.75 RMB/ton).
Supply side: July is typically a low-demand season, and with many hydrogen fluoride producers scheduling routine maintenance, the industry’s operating rate had already dropped to around 50%. However, unexpected shutdowns due to force majeure at major production facilities in North China caused the operating rate to plummet further to approximately 43%. Although there was some recovery in late July, the rate only rose to around 45%. This sharp tightening of supply drove a continuous rise in hydrofluoric acid prices.
Demand side: July falls within the traditional off-season for refrigerants; downstream air conditioner production schedules have scaled back from peak-season levels, resulting in sluggish overall trading in the refrigerant market. Prices for key products—such as R32, R125, and R134a—retreated from their highs, with producers focusing primarily on fulfilling existing orders while seeing limited growth in new bookings. While refrigerant supply remains constrained by quota policies, the pace of essential procurement by end-users has slowed, weakening the capacity to absorb upstream anhydrous hydrofluoric acid. Overall, demand for hydrofluoric acid from the refrigerant industry in July was driven mainly by essential needs rather than incremental growth, which somewhat tempered the upward pressure on prices.
Market Outlook
Overall, after a period of bottoming out lasting several days, the melamine market successfully broke through this weekend, significantly boosting market confidence in the short term. Driven by essential demand and market sentiment, melamine prices are expected to maintain a pattern of fluctuating with a firm undertone; moving forward, it will be important to monitor the follow-through of downstream demand and changes in plant operating rates.
Original article online at: https://www.sunsirs.com/uk/detail_news-34853.html