The domestic market price of anhydrous hydrogen
fluoride (AHF) in China in July 2013 was about
USD1,120/t, down by 3.03% compared with that in June 2013, when it stood at
about USD1,155/t. Actually, its market price has been decreasing continuously
for four months since March 2013 when it reached USD1,257/t, the highest level
in the first seven months of 2013, according to China
Fluoride Materials Monthly Report issued by CCM in
August.
The continuous fall of AHF's market price in
China in July 2013 was mainly caused by the following two reasons.
First, the cost of fluorite kept decreasing
during the period. In July 2013, the average market price of fluorite
(CaF2>97%), the major raw material of AHF, dropped by 5.45% month on month.
Domestic fluorite producers kept their operating rate of the product at a high
level because of the suitable weather for production, which led to a high
inventory. However, the market demand for fluorite did not increase because of
the flagging domestic economy. Therefore, the oversupply of fluorite led to a
continuous fall of its market price.
Second, the market demand for AHF from
downstream industries in July 2013 was quite weak. In H1 2013, the overcapacity
of the aluminum fluoride (AlF3) industry was still serious, which led to a low
operating rate. Under the circumstance, the demand for AHF from the AlF3
industry largely declined. Moreover, the operating rate of the refrigerant
industry in China in July 2013 was also low. Some refrigerants enterprises even
shut down their production lines because of the shrinking profits. For
instance, Shandong Dongyue Group Co., Ltd. shut down its
1,1,1,2-tetrafluoroethane (R134a) production lines on July 19, 2013 and may
resume production in the middle of Aug. 2013.
Along with the continually decreasing market
price and weak demand, AHF producers have reduced their operating rate. In July
2013, the average operating rate of domestic AHF enterprises was 46.80%,
decreasing by 2.92% month on month. Some of the enterprises in North China,
especially in Inner Mongolia, have shut down their production lines to
alleviate their inventory pressure.
The market situation of AHF in South China is
better than that in North China. As a matter of fact, most of the refrigerant
producers are located in South China, where AHF producers have an obvious price
superiority compared with that in North China, thanks to lower transportation
costs. It's estimated that the market price of AHF in South China in July 2013
was USD80/t lower than that in North China.
It is estimated that the market price of AHF
in China in Aug. 2013 will continually drop slightly. On one hand, the market
demand for AHF will still stay at a low level because of the weak economy.
There is no signal that producers of its downstream industries like AlF3 and
refrigerants will increase their operating rates in Aug. 2013. On the other
hand, the market price of its raw materials like fluorite will continually fall
because of the high inventory.
Domestic market price of AHF continually
drops in July 2013
Meilan Chemical releases its purchase order
of USD162 million on Netsun
3F to extend fluorine chemical chain by
acquisition
Domestic market price of R22 rebounds in July
2013
Do-Fluoride shuts down its AlF3 production
lines
Sen Lanping Chemical invests in constructing
HF and inorganic fluoride projects
Market review of PTFE in H1 2013
Juhua suffers a sharp drop of net profit in
H1 2013
Domestic fluorine chemical enterprises
increase their investments in FEP projects
Main device of Longxing Chemical's PVDF
project launches in July 2013
Yongtai Technology sees its net profit
reducing sharply in H1 2013
Import and export analysis of fluoride
chemicals in China in June 2013
China
Fluoride Materials Monthly Report, a monthly publication issued by CCM on 20th,
covers the sectors on policy & legislation,
company dynamic, supply & demand, price update, etc. of China
CCM is dedicated to market research in China
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