The Domestic Anhydrous Hydrogen Fluoride Market Showed an Upward Trend in July

Regarding raw materials: The fluorspar market in July showed a direction of consolidation with a bullish undertone. Due to tightened security inspections at domestic mines, numerous operations in key producing regions—such as Zhejiang, Fujian, Henan, and Hebei—were suspended to 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 vegetation 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 to sulfuric acid—another key raw material—saw mixed fluctuations in July however remained at a high level overall, providing some cost support to hydrofluoric acid production. In summary, the rise in fluorspar prices and the high price level of sulfuric acid provided cost-side support to anhydrous hydrogen fluoride prices. Data from the SunSirs analysis system indicates that as of July 29, the benchmark price to 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 sector'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%. while 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 to refrigerants; downstream atmosphere conditioner production schedules have scaled back from peak-season levels, resulting in sluggish overall trading in the refrigerant market. Prices to key items—such as R32, R125, and R134a—retreated from their highs, with producers focusing primarily on fulfilling existing orders while seeing limited development in new bookings. While refrigerant supply remains constrained by quota policies, the pace of essential procurement by end-consumers has slowed, weakening the capacity to absorb upstream anhydrous hydrofluoric acid. Overall, demand to hydrofluoric acid from the refrigerant sector in July was driven mainly by essential needs rather than incremental development, 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 crucial to monitor the follow-through of downstream demand and changes in plant operating rates.