Brazillian Anhydrous Hydrofluoric Acid Prices Hold Steady in Late July Amids Weak Demand

Santos Port: The Brazilian Anhydrous Hydrofluoric Acid has noted stability in the second half of July. Demand for for the product from the refrigerant and other end-use industries in Brazil has remained weak, with a slowdown in new orders from overseas markets. Seasonal factors and adverse weather conditions have led to a significant reduction in orders of Anhydrous Hydrofluoric Acid, prompting production enterprises to cut back operations and minimize inventory buildup.

Additionally, carriers have begun reducing surcharges on some routes to South Asia and Africa, indicating improved capacity availability. This easing may be due to the early start of the peak season for North America and Europe, as shippers aimed to avoid delays and disruptions. For the week ending on 26th July 2024, the prices of Anhydrous Hydrofluoric Acid CFR Santos Port settled at USD 1550 per tonne.

In the major exporting nation China, recently, rising upstream raw material prices have increased production costs of Anhydrous Hydrofluoric Acid. The domestic fluorite industry remains under pressure, with minimal changes in enterprise operating rates. Upstream mining conditions are tight, with outdated mines being phased out and new exploration proving difficult. Upcoming renovations of fluorite mines will impose stricter safety and environmental regulations. Additionally, high temperatures and heavy rains in the southern region have complicated mining operations, leading to a shortage of raw materials and restricted fluorite supply, eventually affecting the Anhydrous Hydrofluoric Acid market. This tight supply has somewhat limited the decline in fluorite prices. Many domestic Anhydrous Hydrofluoric Acid facilities remain shut, resulting in reduced production and low industry profits.

Additionally, Brazil's chemical trade deficit decreased by 9% in the first half of 2024, reaching USD 21.7 billion, largely due to a decrease in import prices. From January to June, Brazil imported chemicals worth USD 28.8 billion, down 7.5% year-on-year. Despite the reduced deficit, industry experts expressed dissatisfaction, attributing the improvement to lower-priced imports that continue to undermine the market share of domestic producers. These imports, primarily from Asian countries, benefit from competitive pricing due to Russian raw materials acquired at favorable rates amid the ongoing conflict in Eastern Europe. Recently, in June, Brazil's chemical trade unions, called for higher tariffs to address these challenges.

On the demand side, the bidding price for Anhydrous Hydrofluoric Acid from downstream refrigerant manufacturers has gradually decreased. With the market in its off-season and air conditioning companies undergoing their annual maintenance, demand for refrigerants has weakened. Recent continuous rainy weather has adversely affected refrigerant companies' stocking conditions, reducing their procurement of upstream products. Given the current off-season demand and weak purchasing interest, Anhydrous Hydrofluoric Acid prices are expected to remain weak and stable in the near term.

As per the database from ChemAnalyst, the prices of Anhydrous Hydrofluoric Acid are anticipated to decline further in the upcoming weeks due to sustained weak demand and off-season for Anhydrous Hydrofluoric Acid.