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Market mindset stabilizes hydrofluoric acid raw material high-level operation

market mindset stabilizes hydrofluoric acid raw material high-level operation

August 30, 2018

hydrofluoric acid market fluctuated sharply in the first half of this year. First, the price rose sharply to 15000 yuan (ton price, the same below), and then fell sharply to 8000 yuan

however, after entering July, the market volatility was significantly narrowed, and the price remained in the range of 9500~11200 yuan, which fluctuated in Chinese coatings. According to the monitoring data of business agency, the average market price of hydrofluoric acid in China was 11191 yuan at the end of July. By late August, the price fell slightly to 10808 yuan, and the market remained basically stable. It is generally believed in the industry that this is the embodiment of the change in the mentality of market participants and the result of the sawing of costs and demands

market mentality stabilized

insiders said that the price of hydrofluoric acid fluctuated sharply in the first half of this year, mainly due to unstable market mentality, dealers chasing up and down, and excessive speculation, which made the price deviate from the normal range. Under this operation mode, although some dealers made money, there are not a few who lost money. Since the second half of the year, dealers have learned lessons, purchased on demand, and no longer gambled blindly. Therefore, the hydrofluoric acid market has stabilized a lot

Liu Gong, the marketing director of Hunan Minxiang Chemical Co., Ltd., believes that 10000-11000 yuan is a relatively reasonable price in the hydrofluoric acid market. From the historical price trend, the price of hydrofluoric acid continued to be 6000-8500 yuan from 2012 to 2016. At present, the price of more than 10000 yuan is a relatively high market

high level operation of raw materials

Liu Gong said that the hydrogen Jinan assay bearing is a standard part commonly used in mechanical products of spring testing machines, and the relatively high price of fluoric acid is reasonable, mainly due to the rise in production costs

the price of sulfuric acid, another main raw material, is also high. At present, the average price of the national market is 435 yuan, up 36.8% over the same period last year. AI Yuqiang, manager of Guangxi Hongchang Chemical Sales Department, said that the high price of sulfuric acid was due to the decline in production and the large increase in sulfur as raw material. Li Yubo, an analyst at jinlianchuang, believes that with the repeated depreciation of the RMB, the cost of imported sulfur in China has increased significantly, and there is an increasing demand for Jinan Shijin's experiments on mechanics. Moreover, the main sulfur production enterprise Puguang gas field is gradually limiting production, reducing supply, and sulfur prices may rise in the later stage. This means that the price of sulfuric acid will remain high

in addition, the supply of hydrofluoric acid market is also declining

industry statistics show that China's hydrofluoric acid production capacity exceeds 2million tons/year. From the perspective of device scale, the annual production capacity of a single enterprise is mostly 10000 ~ 50000 tons/year, and the devices above 50000 tons/year account for only 18%. The industry is dominated by small devices

hydrofluoric acid is a dangerous chemical, which is prone to pollution in the production process. Under the circumstances of higher and higher environmental protection requirements, some small devices that fail to meet environmental protection standards have been forced to stop production and reduce production this year, and the operating rate is only maintained at about 70%

demand is steadily weakening

downstream demand is difficult to improve, which limits the growth of hydrofluoric acid market, resulting in its high price consolidation

hydrofluoric acid has two downstream, one is aluminum fluoride, the other is refrigerant

aluminum fluoride is mainly used in aluminum smelting to reduce the melting point and improve the conductivity of electrolyte. Affected by the supply side reform of the aluminum industry since 2016, China's electrolytic aluminum output has shown negative growth. In the first half of the year, the national output of electrolytic aluminum was 17.99 million tons, a decrease of 3% compared with the same period last year, and the demand for hydrofluoric acid decreased slightly

refrigerant is mainly used in refrigerators, air conditioners and other electrical appliances. Since the beginning of this year, the domestic real estate regulation has become stricter, the home appliance market is under pressure, and the sales volume has declined. According to the data of wind, an information analysis agency, since March 2018, the monthly output of domestic refrigerators has continuously decreased from 7.1 million to 6.83 million, and the monthly output of air conditioners has decreased from 21.43 million to 20.79 million. In addition, on July 10, the United States announced a tariff increase plan for China's $200billion goods, involving components that comprehensively improve the quality management level of refrigerators and air conditioners. The future export volume of the refrigeration equipment industry may decline due to the impact of the trade war, thereby affecting the demand for hydrofluoric acid

"from the perspective of future development trend, the field with the greatest growth potential of hydrofluoric acid demand is electronic hydrofluoric acid, but at present, according to the principle of gathering innovative resources and activating innovative elements, its proportion in hydrofluoric acid demand is only about 10%, and its impact on the overall demand is limited." Liu Gong said