Price trend
Last week, the domestic fluorite price trend declined slightly. By the end of the week, the average domestic fluorite price was 3,512.5 RMB/ton, down 0.71% from the beginning of the week's price of 3,537.5 RMB/ton, and down 1.58% year-on-year.
Market Analysis
Supply side: Mine operating rates were low, fluorite spot were normal
The competitive landscape of the domestic fluorite industry remained unchanged. Overall, the operating rate of enterprises had not changed significantly. Upstream mining remained tight, and outdated mines continued to be phased out. For new mines, mineral surveys remained fraught with difficulties. Furthermore, government departments were implementing rectification measures for fluorite mines, leading to increasingly stringent safety and environmental requirements for fluorite mining companies. This increased the difficulty of starting fluorite mine operations. The shortage of raw materials had limited the operating rate of fluorite companies. Some mines in the south had low operating rates. While the supply of fluorite from these companies had not changed significantly, inquiries were few, and shipments were sluggish. As temperatures dropped in the north, the winter shutdown period for mines and processing plants in the north was approaching, further tightening market supply and causing a slight decline in fluorite prices.
On the demand side: Hydrofluoric acid prices declined, and the refrigerant market remained general
Domestic hydrofluoric acid prices declined last week, with mainstream negotiated prices across various regions ranging from 11,700 to 12,200 RMB/ton. Downstream hydrofluoric acid plants remained partially shut down, resulting in little change in spot supply. Manufacturers were primarily purchasing on an as-needed basis, with overall operating rates remaining at just over 50%. Hydrogen fluoride producers were maintaining only orders to meet immediate needs, while hydrofluoric acid producers were operating at a loss. Recently, hydrofluoric acid traders were reluctant to purchase, leading to a fierce struggle between supply and demand in the fluorite market, resulting in a "high price but no market" stalemate. Lacking strong demand support, fluorite market prices continued to decline.
The downstream refrigerant market was performing reasonably well. With supportive policies from the refrigerant industry's end-user sector, demand is expected to see a substantial increase. Fluorochemical companies within quota controls had strong confidence in maintaining refrigerant prices. While current high prices had led to a slower pace of procurement, industry inventory levels were being managed in a healthy and orderly manner, with upstream product procurement primarily based on immediate needs. Refrigerant prices had risen somewhat, but companies remained cautious about upstream procurement, while fluorite market prices declined slightly.
In addition to the traditional demand from the refrigerant industry, fluorite, as an important mineral raw material for modern industry, is also being used in strategic emerging industries such as new energy and new materials, as well as in defense and nuclear industries. These applications include lithium hexafluorophosphate, PVDF, graphite anodes, and photovoltaic panels. Driven by demand from new energy and semiconductor industries, the application of fluorite received some support.
Market outlook
The supply of fluorite in China was difficult to improve recently, with some mines suspending production for safety inspections. The tight supply of fluorite was a positive support for the fluorite market. In addition, the supply of fluorite in the north will become tighter in the future. However, downstream hydrofluoric acid companies mainly purchased on demand, and demand had not actually improved. The game between supply and demand was fierce. Overall, the fluorite market price is expected to decline slightly in the short term.
If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.
