Asian Hydrofluoric Acid Prices Tumbled Amidst Debilitated Market Dynamics
- 22-Sep-2022 6:53 PM
- Journalist: Nicholas Seifield
Singapore: Since the September start, the Anhydrous Hydrofluoric Acid market in the Asia Pacific region has consistently witnessed a downward trajectory. However, several Asian producers were persistently adjusting the operating rates within rangebound to sustain their netbacks. The majority of such incidents were majorly concentrated in the Northeast Asian markets. At the same time, cost support from the upstream and feedstocks was somewhat contradicting itself, creating significant hindrances amongst the producers to adjust the offers for Anhydrous Hydrofluoric Acid.
In the Northeast Asian region, the major economies were contracting, prevailing its impact further in the manufacturing sector. As per the data released by the Chinese authorities, the PMI index for the manufacturing sector has slipped below 50, validating the indigent performance of the domestic economy. The demand outlook for Anhydrous Hydrofluoric Acid in China and other Northeast Asian markets was somewhat unpredictable. Despite the ongoing peak heating season, the refrigerant industries' downstream inquiries vary across the countries. A primary market source informed that the prices for refrigerants in the Chinese domestic market have consistently moved upwards, despite the prices for Anhydrous Hydrofluoric Acid were remained in the downward trend.
Currently, the spreads of Hydrofluoric Acid compared to its feedstock and downstream products contradict and defy the usual trends previously witnessed. Several analysts believe this is an outcome of the slow movement in the economy that is further coupled with ongoing power rationing in China. The prices of feedstock fluorspar have consistently risen relative to the downward trajectory of Hydrofluoric Acid, narrowing the spread. At the same time, the up-stride of the downstream refrigerant R22 and downtrend in feedstock Hydrofluoric Acid is widening.
As per the ChemAnalyst pricing intelligence, the Anhydrous Hydrofluoric Acid offered in the Chinese market has fallen below 6.64% since the September start, and analysts believe that the prices remain suppressed besides fluctuating within a narrow range. As anticipated, the value chain of other downstream derivatives has also been impacted due to the power rationing in China, further complexing the market situation.