Price trend:

Domestic fluorite prices declined this week. By the end of the week, the average domestic fluorite price was 3,368.75 RMB/ton, down 0.55% from the beginning of the week (3,387.5 RMB/ton) and down 8.43% year-on-year.

Market Analysis

Supply side: Fluorite spot market is normal, but inventory is high

The competitive landscape of the domestic fluorite industry remains unchanged. Overall, the operating rate of enterprises has not changed significantly, and upstream mining remains tight. Outdated mines will continue to be phased out, and mineral surveys for new mines continue to face numerous difficulties. In addition, government departments are required to rectify fluorite mines, and fluorite mining companies are 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 remains high with no obvious signs of reduction. The supply side maintains a stable production pace. Coupled with the slowdown in production activities before the end of the year and the "buy up not buy down" mentality, the scale of restocking has shrunk in stages, resulting in poor fluorite shipments and a continued downward trend in fluorite prices.

Demand side: Hydrofluoric acid prices are stable; refrigerant market conditions are average

Domestic hydrofluoric acid prices remained stable this week, with mainstream negotiated prices in various regions ranging from 11,700 to 12,200 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 maintain only their immediate order intake, while hydrofluoric acid companies are operating at a loss. Recently, hydrofluoric acid traders have been 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 continue to decline.

The downstream refrigerant market is performing reasonably well, with supportive policies expected to boost demand. Fluorochemical companies within quota controls are confident in maintaining refrigerant prices, and procurement is proceeding slowly at current high prices. Although there have been no new transactions in the distribution market, companies are controlling supply and actively supporting prices. While the refrigerant market remains supported, companies maintain a cautious approach to upstream procurement, and fluorite prices have 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 has received some support.

Market Outlook

The supply of fluorite in China has been difficult to improve recently, with some mines suspending production for safety inspections. The tight supply of fluorite is a positive support for the fluorite market. However, the spot inventory of fluorite is high, and downstream hydrofluoric acid companies mainly purchase on demand. Demand has not actually improved, and there is intense competition between supply and demand. Overall, the fluorite market price is expected to fluctuate at low levels in the short term.

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