At the beginning of April, due to the decline in raw material prices, the company’s profits rebounded, and the enthusiasm for production was high, with sufficient inventory. Overall, the operating rate of the domestic hydrogen fluoride market reached 59.2% in April, an increase of 4.1% compared to March, and the production of 175600 tons increased by 7.0% month on month. However, at the end of April, due to high prices and sufficient inventory in the downstream refrigerant industry, stocking was not active and mainly relied on on-demand procurement, resulting in a decline in market prices by the end of the month. At present, the bidding price for the hydrogen fluoride market in May has been implemented, with a delivery price of 11300-11400 yuan/ton in Jiangsu and Zhejiang regions, and a price reduction of 450-550 yuan/ton compared to April. According to the analysis system of Shengyi Society, as of April 28th, the benchmark price of hydrofluoric acid in Shengyi Society was 11883.33 yuan/ton, a decrease of -2.99% compared to the beginning of this month (11933.33 yuan/ton).

On the raw material side, the market prices of fluorite and sulfuric acid both declined in April. The current situation of the game in the domestic fluorite industry still exists. Overall, the operating rate of enterprises has not changed much. Upstream mining is tight, backward mines will continue to be eliminated, and new mines will be added. Mineral investigation work is still difficult. In addition, national departments need to rectify fluorite mines, and fluorite mining enterprises are facing increasingly strict safety and environmental protection requirements. The difficulty of operating fluorite mines has increased, and the shortage of raw materials has limited the operation of fluorite enterprises. The supply of fluorite sources is still tight. However, as the temperature rises, northern enterprises gradually start operating, and the supply of fluorite enterprises on site has increased. In April, the fluorite market situation declined, and the cost pressure on anhydrous hydrogen fluoride production enterprises has eased to some extent. According to the analysis system of Shengyi Society, as of April 28th, the benchmark price of Shengyi Society’s fluorite was 3712.50 yuan/ton, a decrease of -1.66% compared to the beginning of this month (3775.00 yuan/ton).
Demand side: Downstream refrigerants are in the traditional peak season, but due to high raw material prices, downstream procurement is more cautious and mainly based on demand. The market trading atmosphere is average, and some companies have reduced their raw material demand due to profit losses.
Market forecast: In April, the market price of raw material fluorite sulfuric acid will decline, which will relieve cost pressure for anhydrous hydrogen fluoride enterprises, increase profits, increase production enthusiasm, and ensure sufficient inventory. However, downstream refrigerant procurement is cautious, the trading atmosphere is quiet, and demand is weak. It is expected that the market price of anhydrous hydrogen fluoride will mainly decline in May, with a downward range of around 450-550 yuan/ton. More attention should be paid to the news of leading enterprises and market supply and demand situation.