The market for anhydrous hydrofluoric acid (AHF) was largely stable for the week of September 19th, while some firmness was noted in China, and Japan and the USA remained reliant on imports. Chinese producers faced high costs due to buoyant fluorspar supplies and continued strict mining regulations, yet steady demand for refrigerants continued to support prices. Japan's limited domestic supply and temporary port delays continued to make them reliant on imports even if some procurement was tentative. In the USA, imports were still able to offset the supply, and, even if there was some overall softness from other sectors, the demand from refrigerants and fluorochemical sectors was still healthy. Freight rates added a mild headwind to the market, but still only immediate needs were being met in purchases by most downstream buyers. Overall, the AHF market remained firm, given that costs and constraints from supply prevented a firm downward movement in price.
The Anhydrous Hydrofluoric acid (AHF) market across the globe held overall stability in the week ending September 19th, with a slight increase noticed in hydrogen fluoride (HF) values in China while Japan and USA were mostly dependent on imports. Market fundamentals were dictated by rocketing costs associated with raw materials, availability constraints in supply, and silence in demand from downstream sectors. Most buyers remained in a “purchase-as-needed” mindset as opposed to building inventory levels.
In China, AHF manufacturers continued to face significant cost pressure as the domestic fluorspar market remained tight. Continued mining restrictions stemming from more difficult safety and environmental regulations limited new production; even with mining rules relaxing, supply remained tight. The continued tightness led to AHF producers experiencing high costs and low margins, despite a slight improvement in plant utilization. Demand in refrigerant markets was mixed. R134a and R32 products showed stronger sentiment, while R22 related activity lagged due to a weakened end-user supply chain. Overall, regardless of variations in demand, there was relative stability in support for AHF around steady-to-strong demand, and AHF market prices remained stable-to-strong.
In Japan, the AHF market relied on imports to help offset local production deficiencies. At the port in Yokohama, terminal transfers and quality control relocations resulted in temporary pressures in port operations. Waiting times increased, with minor logistical stress, but still an effect that was reasonably mitigated in deliveries of supply. Domestic AHF buyers had continued steady purchases, and the acceptance of price increases began to soften, which reflects the continued cautious conditions in the buyer’s end market.
In the United States, AHF imports continued to be a significant source of supply. Although a few industrial applications experienced softer demand, the structural support derived from the refrigerant or fluorochemical segments remained structured by a supply quota and assured continued confidence in pricing. Trade policy also assisted in shaping flows with the extension of tariffs on Chinese imports sustaining moderate volumes across the Transpacific. Container freight rates increased just after early September on the heels of pre-holiday shipments and blank sailings, which caused only a moderate uptick in import costs. However, downstream consumption patterns for AHF remained balanced and buying activity was primarily focused on replenishment of inventory rather than speculative activity.
As for the AHF market, a stable but slightly firmer performance was anticipated into key regions. For China, the persistency of tightness in raw material availability is expected to keep cost pressure at a high level, thus preventing a notable easing of pricing. Downstream demand, especially for Japan and the USA, was likely to remain a key factor affecting import dependence. Players in the market were advised to carefully monitor the landscape for supply constraints, trade, and freight developments, through late September.
