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The price of anhydrous hydrogen fluoride saw a significant increase last week. According to the monitoring and analysis system of SunSirs, the benchmark price for hydrogen fluoride stood at 17,383.33 RMB/ton as of November 6—an increase of 6% compared to the end of October.
Market analysis
Raw materials: The price of fluorite has seen a slight increase, with expectations of reduced production at northern mines during the winter providing a floor to prices. Conversely, the price of sulfuric acid has fallen significantly—down 3.57% to the week and 13.16% to the month—which has tempered the upward pressure on the overall production cost of hydrofluoric acid. According to the SunSirs analysis system, the benchmark price to fluorite stood at 3,687.50 RMB/ton as of November 6, representing a 0.34% increase compared to the beginning of the month (3,675.00 RMB/ton).
On the demand side, refrigerants remain the largest downstream consumption; however, R22 prices have seen a notable decline, weighed down by the off-season to maintenance. R32 trade is driven primarily by prolonged contracts, with spot market transactions remaining lackluster. Operating rates to key refrigerants are generally hovering between 40% and 50%, and procurement of hydrofluoric acid is limited to essential, baseline standards, with no significant development in demand.
Market Outlook
Analysts at SunSirs predict that while the price of fluorite—a key raw material—has seen a slight increase, the price of sulfuric acid has declined; consequently, support from the raw material side might be limited, leading to a cautious sentiment in the market. In the short term, the domestic anhydrous hydrogen fluoride market is expected to remain at a high level with minor fluctuations. Moving forward, market participants should closely monitor developments regarding raw material costs, as well as the implementation of maintenance schedules by downstream refrigerant manufacturers.
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