Price trend

The domestic fluorite prices have continued to decline this week, with an average price of 3,150 RMB/ton as of the weekend, a decrease of 2.89% from the early week price of 3,243.75 RMB/ton and a year-on-year decrease of 16.08%.

Analysis review

Supply side: The mine is operating normally, and the supply of fluorite is normal

The current situation of the game in the domestic fluorite industry still exists. Overall, the operating rate of enterprises has increased. Upstream mining is tense, and backward mines will continue to be eliminated. In terms of new mines, mineral investigation work is still difficult. In addition, national departments need to rectify fluorite mines, and fluorite mining enterprises are facing increasingly strict safety and environmental protection requirements. The difficulty of operating fluorite mines has increased, and the shortage of raw materials has limited the operation of fluorite enterprises. However, with the rise of temperature, northern enterprises are operating normally, and the supply of fluorite enterprises in the field has increased. The lack of active procurement has led to sufficient spot goods in the field. Some fluorite manufacturers have a strong sentiment of destocking, resulting in a continuous decline in the fluorite.

Demand side: Low price of hydrofluoric acid, acceptable refrigerant market

This week, the domestic price of hydrofluoric acid remains low, and the mainstream price for hydrofluoric acid in various regions of China is negotiated at 10,500-11,000 RMB/ton. Some downstream hydrofluoric acid units are still shut down, and there is little change in the spot supply of hydrofluoric acid. Manufacturers mainly purchase hydrofluoric acid on demand, and the overall production of hydrofluoric acid remains at more than 50%. Fluorine enterprises maintain essential orders, and hydrofluoric acid enterprises are in a loss making state. They are not active in purchasing raw fluorite, and downstream merchants have a strong wait-and-see attitude. Both buyers and sellers have weak expectations for the future due to poor demand digestion. Recently, some hydrofluoric acid manufacturers have seen prices decline, and the fluorite price market continues to decline due to this news.

The downstream refrigerant market in the terminal industry is still promising, and the terminal policy of the refrigerant industry is being strengthened. Demand is expected to achieve substantial improvement. Fluorine chemical enterprises within quota control have strong confidence in raising prices in the refrigerant market. Currently, the pace of high price procurement is relatively slow, but the industry inventory is transmitting in a positive and orderly manner. Due to high prices, the enthusiasm for stocking up in the terminal industry is low, and upstream products are mainly purchased on demand. The trend of refrigerant market is average, while the fluorite market is sluggish.

In addition to the traditional demand in the refrigerant industry, fluorite, as an important mineral raw material for modern industry, is constantly developing in emerging fields. It is also applied in strategic emerging industries such as new energy and new materials, as well as in national defense, nuclear industry and other fields, including lithium hexafluorophosphate, PVDF、 Graphite negative electrodes, photovoltaic panels, etc., have received certain support in the application of fluorite due to the demand for new energy and semiconductors.

Market outlook

In recent times, it has been difficult to improve the supply of domestic fluorite mines, and some mines have stopped production and undergone safety inspections. The tight supply of fluorite mines is a positive support for the fluorite market. However, in some areas, the lack of active fluorite procurement has led to an increase in inventory. In addition, downstream companies have a serious resistance to high prices, and hydrofluoric acid enterprises mainly purchase on demand without actual demand increase. In addition, the market price of hydrofluoric acid has been declining. Overall, the fluorite market price is prone to decline but difficult to rise in the short term.

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