Recent data indicates a resurgence in the price of anhydrous hydrogen fluoride, with the market...
The fluorspar market is currently experiencing a period of standoff as we approach the end of the month, a crucial pricing cycle for downstream hydrofluoric acid. Participants are adopting a cautious, wait-and-see approach amidst ongoing negotiations.
On the supply side, domestic mining operations remain constrained. Stringent environmental policies are leading to capacity contraction, particularly affecting small to medium-sized mines where actual operating rates are insufficient due to environmental remediation efforts. Moreover, the extended approval cycles for mining permits, now spanning over a year, combined with increased investments in environmental protection equipment, are dampening the willingness of smaller mining enterprises to resume production.
Demand-wise, traditional end-use sectors are demonstrating stable demand. The refrigerant industry is witnessing a resurgence, with March and April traditionally representing peak demand seasons. Increased domestic air conditioner sales and export production are collectively driving demand for fluorspar. However, the hydrofluoric acid market is grappling with a cost-versus-demand dynamic. Overcapacity within the industry is squeezing profit margins, limiting its acceptance of high-priced raw materials, consequently shifting industry profits towards the resource end.
Looking ahead, the peak demand season is nearing its end. With both fluorspar and sulfuric acid prices showing signs of stagnation or decline, bearish sentiment is increasing within the market. It is anticipated that the hydrofluoric acid market will experience a substantial price correction in May, potentially ranging from 300-500 RMB per ton. Fluorspar prices are expected to follow this downward trend, entering a phase of rational readjustment. The market should prepare for a period of price weakening alongside hydrofluoric acid market movement. This represents a crucial time for stakeholders to closely monitor market dynamics and adjust their strategies accordingly. This period of price correction is a natural response to fluctuating market conditions, driven by a complex interplay of supply-side constraints, demand-side seasonal variations, and the overall profitability of the hydrofluoric acid industry. Being proactive and adapting to these changes will be key to success in the fluorspar market.
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