Rising Freight Costs and Supply Shortages Boost Anhydrous Hydrofluoric Acid Prices in Brazil

Sao Paulo (Brazil): Anhydrous Hydrofluoric Acid prices in Brazil began to climb in June 2024 due to increased freight charges and cargo shortages. Recently, Anhydrous Hydrofluoric Acid prices rose further due to imports of higher-priced goods. In China, a major exporting nation, upstream raw material prices, particularly in the fluorspar market, have remained high. Consequently, Anhydrous Hydrofluoric Acid manufacturers raised factory prices, leading to continued upward pressure on domestic market prices of Anhydrous Hydrofluoric Acid.

However, domestic demand for Anhydrous Hydrofluoric Acid has been weak following the conclusion of the peak summer season in the region. Elevated freight charges are a significant driver behind the price increase of Anhydrous Hydrofluoric Acid. Ocean rates out of Asia have been rising due to mid-month Peak Season Surcharge increases, strong demand, and congestion issues in the Western Mediterranean and Far East, causing supplies of chemicals such as Anhydrous Hydrofluoric Acid to be delayed, leading to price increases.

Container freight rates on key Brazilian trade routes, both north-south and east-west, are surging due to strong demand and capacity shortages for South American shipments. Freight forwarders in Brazil report that rates on the Asia-East Coast South America trade route have reached nearly a two-year high. Ongoing construction at Navegantes port has led to vessel diversions overwhelming other gateways like Itapoá and Paranaguá.

Ex-Asia ocean rates were stable last week but are expected to rise further as the peak season approaches and congestion persists at major hubs. Carriers are expanding long-haul services in response to high demand. The early start to the peak season may lead to congestion and rate increases in July and August, with potential relief by October before pressures resume ahead of the Lunar New Year. Concerns over a potential East Coast and Gulf port worker strike in October are contributing to early peak season demand. Additionally, the Panama Canal Authority plans to ease draft restrictions and restore daily transits to 35 by August due to improved reservoir levels from the rainy season. Hence, there has been a significant on the prices of Anhydrous Hydrofluoric Acid.

In Brazil, downstream demand for Anhydrous Hydrofluoric Acid from refrigerant and other end-use industries has remained subdued. Furthermore, new orders from the downstream semiconductor and electric vehicle markets have slowed in the region. Anhydrous Hydrofluoric Acid market participants indicate that consumption levels of Anhydrous Hydrofluoric Acid have been low, with ample supply available to meet limited consumer demand. This surplus supply, coupled with reduced Anhydrous Hydrofluoric Acid demand, has created a sluggish market environment for Anhydrous Hydrofluoric Acid in Brazil. Factors contributing to this include decreased industrial activity and slower economic growth, which have collectively dampened both domestic and international demand for chemicals. As a result, manufacturers and suppliers are facing challenges in maintaining sales volumes and profitability in this market segment.

According to ChemAnalyst's pricing intelligence, Anhydrous Hydrofluoric Acid prices are expected to continue their upward trend in the coming weeks due to anticipated increases in shipping charges. Meanwhile, the demand for Anhydrous Hydrofluoric Acid may show improvement in the coming weeks.