Anhydrous Hydrofluoric Acid Prices Drop in the USA as Demand Weakens and Supply Surges

Texas, USA: In the first half of July, Anhydrous Hydrofluoric Acid market quotations noted continued decline in the US domestic market as imports of cheaper goods continued to pressure the prices. The demand for Anhydrous Hydrofluoric Acid from the downstream refrigerant and battery manufacturing industries has weakened, leading to ample material availability in the consumer market, resulting in a drop in new orders. Additionally, manufacturers in exporting nations have encountered higher manufacturing costs of Anhydrous Hydrofluoric Acid due to increased upstream fluorite prices, driven by rising demand and accelerated construction activities.

During the monsoon season, demand for Anhydrous Hydrofluoric Acid declines due to several factors such as heavy rains and humidity disrupting industrial operations, leading to reduced production; cooler and more humid weather decreases the need for air conditioning and refrigeration, lowering refrigerant demand. Thereby, the prices of Anhydrous Hydrofluoric Acid DDP Houston settled at USD 2400 per tonne in the week ending on 12th July 2024 in the US market.

In the other consumer market, the chemical production sector, the outlook has positively developed albeit at a moderate pace. Overall, industrial production grew by just 0.2% in 2023, with a similar modest increase expected in 2024, followed by a 1.7% rise in 2025. Industrial production is anticipated to see more significant growth in the second half of the year, driven by a recovery in consumer goods and gains in investment.

Market participants have observed high material availability of Anhydrous Hydrofluoric Acid in the domestic market, leading to a slowdown in new consumer purchases. The overall supply chain operated at a moderately slower pace. Mexico has solidified its position as the top trading partner for the U.S. However, Mexican carriers are facing challenges such as capacity constraints and a driver shortage. To ensure success, logistics teams must prepare for potential volatility in cross-border transportation programs. Trucking freight across North America has been steadily rising for over three years, with only two minor decreases during that time. Cross-border freight hauled by trucks increased by over 8% year-over-year at the U.S. northern border and by more than 11% year-over-year at the southern border.

Demand for Anhydrous Hydrofluoric Acid from downstream industries slowed as inventories remained high and customers were not focusing on stocking fresh supplies. Additionally, the pace of inquiries of Anhydrous Hydrofluoric Acid from downstream industries has eased as consumers were avoiding placing new orders. Spot transactions in the Anhydrous Hydrofluoric Acid market have also moderated, resulting in decreased trading activities. As the industry entered the off-season in July and August, rainy weather conditions further reduced production enterprises' demand for Anhydrous Hydrofluoric Acid. This resulted in decreased purchasing enthusiasm, with demand for hydrofluoric acid primarily driven by essential procurement needs.

According to the ChemAnalyst pricing intelligence, the prices of Anhydrous Hydrofluoric Acid are anticipated to remain weak in the upcoming weeks as weak demand conditions are presumed to persist in the US market.