Price trend

Last week, the domestic fluorite price trend declined slightly. As of the weekend, the average domestic fluorite price was 3,625 RMB/ton, down 0.68% from the price of 3,650 RMB/ton at the beginning of the week and up 4.50% year-on-year. 

Supply side: Mine operation was low and fluorite spot prices were normal

The domestic fluorite industry remained a competitive landscape. Overall, the operating rate of enterprises had not changed much. Upstream mining remained tight, and outdated mines would continue to be eliminated. For new mines, mineral surveys remained difficult. Furthermore, with national authorities requiring rectification of fluorite mines, fluorite mining companies faced increasingly stringent safety and environmental protection requirements, making it more difficult to operate fluorite mines. Raw material shortages were also restricting fluorite companies' operations. The operating rate of some mines in the south was low, and supply constraints were 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 approached, market supply was further tightening, and fluorite prices remained high.

Demand side: Hydrofluoric acid prices were temporarily stable, while refrigerant market was 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 remained shut down, leaving spot hydrofluoric acid supply largely unchanged. Manufacturers primarily purchased on-demand, with overall hydrofluoric acid production capacity remaining above 50%. Hydrogen fluoride companies maintained rigid order, leaving hydrofluoric acid companies operating at a loss. Recently, hydrofluoric acid vendors had 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 had weakened and retreated.

The downstream refrigerant market continued to rise. With policy support for the refrigerant industry, demand is expected to increase substantially. Fluorine chemical companies remained confident in maintaining refrigerant prices within quota control. While current high prices were moderate, procurement was slowing, but industry inventories were being transmitted in a healthy and orderly manner, with upstream product purchases primarily based on demand. While refrigerant prices had risen, upstream procurement remained 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 had received certain support.

Market outlook

The supply of domestic fluorite mines was difficult to improve recently, and some mines stopped production for safety inspections. The tight supply of fluorite mines was 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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