SunSirs: The Trend of Domestic Fluorite Market Price was Stable on 5th November

The fluorite commodity index on 5^th November was 100.97, which was the same as yesterday. It was 20.80% lower than the highest point at 127.49 of the period since 3^rd January 2019, and 105.18% higher than from the lowest point at 49.21 since 18^th December 2016 (Note: The period refers to since 1^st September 2016).

According to statistics, the domestic fluorite price trend is temporarily stable. Till 5^th November, the average price of domestic fluorite is 2877.78 RMB/t. The domestic fluorite equipment runs normally recently. The mines and flotation devices in the field start normally. The fluorite supply in the field is normal. Recently, the price of hydrofluoric acid in the downstream has remained low. For the fluorite market, it shows on-demand purchase and fair on-site goods flow. The price of the fluorite market is temporarily stable. Meanwhile, the equipment in the downstream runs normally. The spot supply of fluorite in the market is sufficient, and the downstream demand of end customers did not improve, resulting in weak market prices. Up to 5^th November, the price of 97 fluorite wet power in Inner Mongolia Province is 2600-2800 RMB/t, in Fujian Province is 2600-2900 RMB/t, in Henan Province is 2600-2900 RMB/t and in Jiangxi Province is 2600-3000 RMB/t. In general, the price of fluorite remains at a low level.

The market price of hydrofluoric acid, which is in the downstream of fluorite, remained at a low level. Up to 5^th November, the domestic market price of hydrofluoric acid was 9,640RMB/t. The dropping market price of hydrofluoric acid has a certain negative impact on the upstream fluorite market, but recently hydrofluoric acid plant runs fairly with low demand of fluorite. The price fluorite fluctuates at a low level. On the other hand, the downstream terminal market—refrigerant market is trading normally. The domestic refrigerant R22 market fluctuates. On the supply side, the refrigerant R22 market continues to be weak. Manufacturers reduce the starting load, which reduces the market supply capacity, thereby buffering the inventory pressure.  On the demand side, downstream air-conditioning manufacturers go in to maintenance. Demand reduces. The price of domestic large enterprises is 1,200-13,000 RMB/t. The domestic R134a market price remains low. At present, the R134a market has entered off-season, and downstream demand is weak. The operating rate of several R134a producers remains low. However, the transaction price on the market continued to fall, and the merchants purchased on demand. At the end of the peak season, the terminal downstream demand reduces which cause the price of the fluorite market at a low level.

Overall, the downstream refrigerant industry is in light market condition and the downstream refrigerant industry is in short demand. As the temperature drops, the supply of fluorite in the north may decrease. SunSirs’ analyst Chen Ling believes that the fluorite market price may remain low.

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