In the first half of 2023, the market price of hydrofluoric acid significantly decreased. At the beginning of the year, the price was 12500 yuan/ton, and at the middle of the year, the price was 9657.14 yuan/ton. The decline in the first half of the year was 22.74%. In the first half of the year, the market price of hydrofluoric acid decreased more or less, and from March to April, the price of hydrofluoric acid increased, while prices in other months decreased to varying degrees.

The trend of the hydrofluoric acid market in the first half of the year is mainly divided into three stages: the rapid decline in domestic hydrofluoric acid prices from January to February, the slight recovery in the hydrofluoric acid market from March to April, and the further decline in hydrofluoric acid prices from May to June:

The domestic price of hydrofluoric acid rapidly declined from January to February. At this stage, the price of hydrofluoric acid has dropped from 12500 yuan/ton to 9828.57 yuan/ton, with a decrease of up to 21.37%. The main influencing factor is the sharp supply-demand contradiction. At this stage, the spot supply of hydrofluoric acid is very sufficient, even if some units in the north stop, the demand for downstream refrigerants is very low due to the holiday around the Spring Festival, resulting in poor delivery of hydrofluoric acid, frequent inventory accumulation by manufacturers, and a significant decrease in hydrofluoric acid prices. On the other hand, the price trend of raw material fluorite at this stage has declined, and the cost support has declined, which is also a major bearish factor in the hydrofluoric acid market. In addition, the refrigerant industry is sluggish, procurement demand is poor, and multiple bearish factors are combined, resulting in a significant decline in the hydrofluoric acid market from January to February.

The hydrofluoric acid market slightly rebounded from March to April. At this stage, the domestic hydrofluoric acid market has slightly increased, with prices rising from 9828.57 yuan/ton to 10357.14 yuan/ton, an increase of 5.38%. On the one hand, the rise in raw material fluorite prices is driving the situation. At this stage, due to environmental requirements and mining accidents, the domestic spot supply of fluorite is very tight, and the price trend of fluorite is rising. On the other hand, the refrigerant market is on the rise. March April is the peak period for the refrigerant industry to stock up, and the demand for upstream hydrofluoric acid procurement has increased. Affected by the positive support from upstream and downstream, the hydrofluoric acid market has rebounded.

The price of hydrofluoric acid fell again from May to June. Due to weaker demand, the price of hydrofluoric acid has declined again, with the market price dropping from 10357.14 yuan/ton to 9657.14 yuan/ton, a decrease of 6.76%. At this stage, the spot supply of hydrofluoric acid is still sufficient, and manufacturers’ orders for hydrofluoric acid are weak. However, the price of raw fluorite is at a high level, and the downstream refrigerant season is not strong. The demand for hydrofluoric acid is not good, resulting in severe losses for hydrofluoric acid production enterprises. Some enterprises choose to stop and respond due to the impact of losses. Anhydrous hydrofluoric acid starts at around 60%, and some enterprises have increased inventory. Negative factors have affected the decline of the hydrofluoric acid market.

From the perspective of the fluorine chemical industry chain, due to safety, environmental protection and other reasons, upstream mining of fluorite is still tight, and backward mines will continue to be phased out. The shortage of raw materials has limited the operation of fluorite enterprises, which supports the fluorite market price, and the decrease in fluorite is relatively small. However, as the industry with the largest proportion of downstream applications in the fluorine chemical industry, refrigerant market prices have been sluggish. In the first half of the year, there was a rapid drop in production during the peak season, which caused many concerns and concerns in the market. Under the combined influence of high raw materials and poor demand, hydrofluoric acid enterprises have been struggling to survive, and most of them have suffered losses.

In the short term, the market for raw material fluorite has slightly declined, and with the end of the peak season in the downstream refrigerant industry, refrigerant production has shown a downward trend. Regarding the decrease in hydrofluoric acid procurement, high inventory of hydrofluoric acid, resonance between high raw material demand and poor demand, Chen Ling, a hydrofluoric acid analyst at Business Society, believes that the recovery of the hydrofluoric acid market is hopeless in the short term. As the weather cools down in the fourth quarter, the price of raw material fluorite will increase, and cost support will be more obvious at that time, The hydrofluoric acid market may experience an increase in the fourth quarter.