Tight Supply Boost the Prices of Hydrofluoric Acid in India

The Indian Anhydrous Hydrofluoric Acid market observing adequate pressure in the supply outlook since the third quarter of 2021. Numerous macro-and micro-economic factors contributed to the market movement of Anhydrous Hydrofluoric Acid in the Indian domestic market. With the closure of the Chinese market ahead of the spring festival of 2022 the export volumes dropped significantly after the Chinese suppliers stops responding to the inquiries from the overseas market which further uplifted the Fluoro market sentiments in India.

During the mid-third-quarter resurgence of COVID hindered the trade practices as the Chinese authorities temporarily suspends all the onloading and offloading activities at one of its major major ports which led to the congestion in the freight market throughout the Asia Pacific region. In response, the freight offers were soared to the historic high which further coupled with the strict implementation of environmental protection policy. In addition, the coal shortage-induced power rationing suppressed the domestic manufacturing index further after the producers were forced to reduce the operational loads. In response, the imported volumes of Anhydrous Hydrofluoric Acid and the feedstock Fluorspar to the Indian domestic market were curtailed by certain limits and gained values exponentially till the mid of the fourth quarter.

Although the situation eased after the persistent efforts of the Chinese authorities led to the commissioning of the new coal mines in China and shipping charges dropped by 25% despite the limited accessibility. The Hydrofluoric Acid market in the Asia Pacific region eased in terms of values and gain in terms of volumes after the power rationing curbed to a certain extent in the Chinese domestic market. Although earlier in 2021, the Chinese authorities have agreed to reduce the production and dependence of HFCs by 80% by 2045. Therefore, several market experts were anticipating that the Chinese Flurospar and Hydrofluoric Acid production will likely remain suppressed throughout February.

As per ChemAnalyst, the Anhydrous Hydrofluoric Acid sentiments witnessed a significant shift in the market dynamics after the end-use application extended in the rapidly growing EV battery segment for the production of LiPF6. In response, various major players in the Fluorochemicals domain in India made early move-in anticipation to ensure the coverage of larger market share and better netbacks in the upcoming period.