Price trend:

Last week, domestic fluorite prices trended downwards. By the end of the week, the average domestic price of fluorite was 3,387.5 RMB/ton, a decrease of 1.81% compared to the price of 3,450 RMB/ton at the beginning of the week, and a year-on-year decrease of 7.92%.

Supply side: Fluorite spot supply was normal, but inventory levels were high

The domestic fluorite industry still faced ongoing challenges and competition. Overall, there was little change in the operating rates of enterprises. Upstream mining operations remained tight, with inefficient mines continuing to be phased out. Regarding new mines, mineral exploration work remained difficult, and coupled with government-mandated rectification of fluorite mines, fluorite mining companies faced increasingly stringent safety and environmental requirements. This had increased the difficulty of starting new fluorite mining operations. However, on-site fluorite supply remained normal, and social inventories continued to run at high levels without significant signs of depletion. The supply side maintained a stable production pace. Furthermore, the slowdown in production activities before the end of the year and the "buy on the rise, not on the fall" mentality led to a contraction in temporary restocking, resulting in poor fluorite sales and a continued downward trend in fluorite prices.

Demand side: Hydrofluoric acid prices remained stable, and the refrigerant market was general

Last week, domestic hydrofluoric acid prices remained stable, with mainstream negotiated prices in various regions of China ranging from 11,700 to 12,200 RMB/ton. Some downstream hydrofluoric acid plants remained shut down, resulting in little change in the supply of hydrofluoric acid. Manufacturers primarily purchased hydrofluoric acid on a needs basis, and overall production remained at slightly over 50%. Hydrofluoric acid companies maintained orders based on immediate needs and were operating at a loss. Recently, hydrofluoric acid traders were inactive in purchasing. The fluorite market was experiencing intense competition between supply and demand, resulting in a stalemate of "prices without transactions," and in the absence of strong demand support, fluorite market prices continued to decline.

The downstream refrigerant market was performing reasonably well, and supportive policies for the refrigerant industry are expected to boost demand significantly. Fluorochemical companies operating within quota limits were confident in maintaining high prices in the refrigerant market. However, the high prices were leading to a slower pace of purchasing, and although there were no follow-up transactions in the circulation market, companies were restricting supply and actively pushing for higher prices. The refrigerant market trend was showing an upward movement, but upstream purchasing remained cautious, and the price of fluorite had slightly decreased.

In addition to the traditional demand from the refrigerant industry, fluorite, as an important mineral raw material for modern industry, is experiencing growing demand in emerging fields. It is also used in strategic emerging industries such as new energy and new materials, as well as in defense and nuclear industries. Applications include lithium hexafluorophosphate, PVDF, graphite anodes, and photovoltaic panels. With demand driven by the new energy and semiconductor sectors, the application of fluorite was receiving significant support.

Market Forecast:

Recently, domestic fluorite supply was difficult to improve, with some mines suspending production for safety inspections. The tight supply of fluorite was a positive factor supporting the fluorite market, but high inventories of fluorite spot goods and downstream hydrofluoric acid companies mainly purchasing on demand meant that demand had not actually improved. Overall, the fluorite market price will mainly fluctuate at a low level in the short term.

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