Hydrofluoric Acid

07 November 2005 00:01  [Source: ICB Americas]

Producer                                                                 Capacity*

Alcan, Jonquière, Québec	34
DuPont, La Porte, Tex.	80
Honeywell, Amherstburg, Ontario	52
Honeywell, Geismar, La.	130
Industrias Quimicas, San Luis Potosi, Mexico	7
Quimobásicos, Monterrey, Mexico	6
Química Fluor, Matamoros, Mexico	94
Solvay Fluor Mexico, Juarez, Mexico	36
Total	439

DEMAND

2003: 331,000 metric tons; 2004: 355,000 metric tons; 2008: 410,000 metric tons, projected. Demand equals production plus imports (2003: 111,000 metric tons; 2004: 128,000 metric tons) less exports (2003: 9,000 metric tons; 2004: 9,000 metric tons).

GROWTH

Historical (1999–2004): 3.8 percent per year;
future: 3.8 percent per year through 2008.

PRICE

Historical (1999–2004): High, $0.65 per pound, list, aqueous 70 percent, bulk, frt. equald.; low, $0.62, same basis. Current: $0.65, same basis.

USES

Fluorocarbons, 58 percent; aluminum production, 13 percent; alkylation catalyst, 3 percent; metal etching, 3 percent; uranium fuel processing, 2 percent; miscellaneous, 21 percent.

MARKET PERSPECTIVE

The market for hydrofluoric acid is under pressure from higher energy costs and a sharp increase in the cost of fluorspar, its major raw material. However, consumption has remained strong because of solid end-use demand, especially for replacement fluorocarbons.

The US does not produce acid-grade fluorspar and all of that which is used in hydrofluoric acid production must be imported. Between 1999 and 2003, the cost of fluorspar averaged $135 per metric ton. Then in 2004, this jumped to $169. And year-to-date 2005 it has averaged $186—a 38 percent jump in two years.

On the demand side, hydrofluoric acid continues to expand because of strong demand for replacement fluorocarbons, especially hydrofluorocarbons (HFCs) 125, 134a and 245fa, which consume more hydrofluoric acid than the hydrochlorofluorocarbons (HCFCs) they are replacing.

The HFC replacements have no ozone-depletion potential because they contain no chlorine atoms. The most successful HFC replacement compound is HFC 134a. It is the main replacement for CFC 12 in automobile air conditioners and is being used as the refrigerant in new commercial chillers and refrigerators and as the propellant in aerosols and tire inflators. HFCs 23, 32, 125, 143a, 152a, 227ea, 236fa, 245fa, and 4310 also are being produced domestically but in much smaller quantities. These HFCs are being used individually or in blends as replacements for CFCs and HCFCs.

Producers report that their plants are operating in the high 80 percent range to support continued demand growth. This is up from the mid-70 percent range that was reported the last time this profile was published. Pricing has also trended upward, with three price increases over the past three years. List price, however, has not changed, but market pricing is evidently approaching the list.

OUTLOOK

Continued increases in raw material and energy costs continue to squeeze producer margins and further price increases can be anticipated. Rising fluorocarbon demand will further drive the volume growth of hydrofluoric acid in the US at rates higher than GDP. Other application segments for the acid, such as petroleum alkylation and steel, will grow at rates close to GDP. Growth for the forecast period is projected to be 3.8 percent.

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