Price trend:

In November, the domestic fluorite price trend declined. By the end of the month, the average domestic fluorite price was 3,450 RMB/ton, a decrease of 2.47% from the beginning of the month (3,537.5 RMB/ton) and a year-on-year decrease of 6.12%.

Supply side: Mines were operating normally; fluorite inventories were high

The competitive landscape of the domestic fluorite industry remained unchanged. Overall, the operating rate of enterprises had not changed much, and upstream mining remained tight. Outdated mines would continue to be eliminated, and mineral surveys for new mines were still fraught with difficulties. In addition, the government required to rectify fluorite mines, and fluorite mining companies were facing increasingly stringent safety and environmental protection requirements, making it more difficult to start fluorite mines. However, the spot supply of fluorite is normal, and social inventory remained high with no obvious signs of reduction. The supply side maintained a stable production pace, coupled with fewer inquiries and poor sales, leading to a continued decline in fluorite prices.

On the demand side: Hydrofluoric acid prices were rising, while the refrigerant market remained acceptable

Domestic hydrofluoric acid prices rose slightly in November, with mainstream negotiated prices in various regions ranging from 12,000 to 12,500 RMB/ton. Downstream hydrofluoric acid plants remained shut down, resulting in little change in spot supply. Manufacturers primarily purchased hydrofluoric acid on an as-needed basis, maintaining an overall operating rate of just over 50%. Hydrogen fluoride companies maintained only orders to meet immediate needs, while hydrofluoric acid companies 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 had corrected.

The downstream refrigerant market was performing reasonably well. With supportive policies from the refrigerant industry's end-user sector, demand was expected to see a substantial increase. Fluorochemical companies within quota controls had strong confidence in maintaining refrigerant prices. While 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 remain cautious about upstream procurement. Hydrofluoric acid companies were also cautious in their purchases, and fluorite market prices were declining.

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 had 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 market was experiencing intense competition between supply and demand. Overall, the fluorite market is expected to fluctuate in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.