Anhydrous Hydrofluoric Acid Prices Plummet By 7% in China

Singapore: China's Anhydrous Hydrofluoric Acid market remained suppressed throughout the last month. The overall supply scenario in the domestic market persistently improved after the regional manufacturers increased the operational loads at the production sites, surpassing the demand in the Chinese domestic market. Although several fluctuations were observed in the offered quotations, the overall prices in the domestic market observed a steep downfall of approx 7% in the provided quotes from the manufacturers on a month-on-month basis, despite the increased cost support from the feedstock Fluorspar or Fluorite.

At the same time, the demand from the refrigerant industry entered the offseason trend led to a drop in domestic and overseas inquiries against the adequate availability of Anhydrous Hydrofluoric Acid in the domestic market. This market development further weakened the domestic players' sentiments and imbalanced the supply-demand outlook in the Chinese domestic market. In addition, the trading atmosphere at the spot markets was general, and spot transactions were stable. In contrast, the European players sought the finished good amidst the ongoing stagflation and holidays throughout the region.

The Anhydrous Hydrofluoric Acid market observed a similar trend since the mid of second quarter of 2022. It remains stagnant for a few weeks, followed by a significant plunge. Therefore, it showcases that the domestic players were trying hard to maintain an optimum netback from the sales, especially the players that suspended their operations during the shutdown. According to the market expert, if this trend persists for a significant duration in the Chinese domestic market, the market players will be forced to reduce the operation load again to maintain netbacks. At the same time, it is also considered that inquiries from the European markets may rebound in the last month of the third quarter or after the holidays in Europe. Still, several outcomes may be clouded by the rising stagflation in the European markets.

As per ChemAnalyst pricing intelligence, it is anticipated that the downtrend in the Anhydrous Hydrofluoric Acid market in China will persist in the short duration. The offered quotations in the domestic market will stabilize in the upcoming term.