Price trend

The domestic fluorite price trend declines slightly this week. As of the weekend, the average domestic fluorite price was 3,650 RMB/ton, down 0.61% from the price of 3,672.5 RMB/ton at the beginning of the week and up 5.42% year-on-year.

Supply side: Mine operation is low and fluorite spot prices are normal

The domestic fluorite industry remains a competitive landscape. Overall, the operating rate of enterprises has not changed much. Upstream mining remains tight, and outdated mines will continue to be eliminated. For new mines, mineral surveys remain difficult. Furthermore, with national authorities requiring rectification of fluorite mines, fluorite mining companies face increasingly stringent safety and environmental protection requirements, making it more difficult to operate fluorite mines. Raw material shortages are also restricting fluorite companies' operations. The operating rate of some mines in the south is low, and supply constraints are tight for fluorite companies on the market, leading to a clear intention for holders to maintain prices. As temperatures drop in northern China and the winter shutdown period for mines and concentrators in the region approaches, market supply is further tightening, and fluorite prices remain high.

Demand side: Hydrofluoric acid prices are temporarily stable, while refrigerant market is general

Domestic hydrofluoric acid prices remained stable this week, with the mainstream negotiated price across various regions ranging from 12,200 to 12,700 RMB/ton. Some downstream hydrofluoric acid plants remain shut down, leaving spot hydrofluoric acid supply largely unchanged. Manufacturers primarily purchase on-demand, with overall hydrofluoric acid production capacity remaining above 50%. Hydrogen fluoride companies maintain strong demand, leaving hydrofluoric acid companies operating at a loss. Recently, hydrofluoric acid vendors have been slow to purchase, leaving the fluorite market in a fierce struggle between supply and demand, trapped in a "priceless" deadlock. In the absence of strong demand, fluorite prices have weakened and retreated.

The downstream refrigerant market continues to rise. With policy support for the refrigerant industry, demand is expected to increase substantially. Fluorine chemical companies remain confident in maintaining refrigerant prices within quota control. While current high prices are moderate, procurement is slowing, but industry inventories are being transmitted in a healthy and orderly manner, with upstream product purchases primarily based on demand. While refrigerant prices have risen, upstream procurement remains cautious, leading to a slight decline in fluorite market prices.

In addition to the traditional demand of the refrigerant industry, fluorite, as an important mineral raw material in modern industry, has continuously developed demand in emerging fields. It is also used in strategic emerging industries such as new energy and new materials, as well as defense, nuclear industry and other fields, including lithium hexafluorophosphate, PVDF, graphite negative electrode, photovoltaic panels, etc. With the demand driven by new energy and semiconductor fields, the application of fluorite has received certain support.

Market outlook

The supply of domestic fluorite mines is difficult to improve recently, and some mines have stopped production for safety inspections. The tight supply of fluorite mines is a positive support for the fluorite market. In addition, the supply of fluorite in the north will become tight in the future. However, downstream hydrofluoric acid companies mainly purchase on demand, and demand has not actually improved. The fierce game between the supply side and demand, overall, the fluorite market price will be mainly volatile in the short term.

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