Price trend:

Last week, domestic fluorite prices fluctuated, with the average price reaching 3,406.25 RMB/ton by the end of the week, a slight increase of 0.18% compared to the beginning of the week (3,400 RMB/ton), but a year-on-year decrease of 5.48%.

Market analysis

Supply side: Fluorite spot supply was normal, and inventory remained high

The domestic fluorite industry still faced ongoing challenges and competition. Overall, there was little change in the operating rates of enterprises. Upstream mining remained tight, with outdated mines continuing to be phased out. Regarding new mines, mineral exploration work remained difficult, and coupled with the government's efforts to rectify fluorite mines, fluorite mining companies face increasingly stringent safety and environmental requirements. This had increased the difficulty of operating fluorite mines. However, the supply of fluorite on the market was normal, and social inventories remained high with no significant signs of depletion. The supply side maintained a stable production pace, and production activities tended to slow down before the end of the year, leading to a reduction in the scale of replenishment. Recently, downstream purchasing was inactive, and fluorite shipments were average, resulting in a generally stable fluorite market trend.

Demand side: Hydrofluoric acid prices were stable, and the refrigerant market was performing moderately

Last week, domestic hydrofluoric acid prices remained stable, with mainstream negotiated prices in various regions of China ranging from 12,000 to 12,500 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 an as-needed 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 have not been actively purchasing. The fluorite market was experiencing intense competition between supply and demand, resulting in a stalemate of "prices without transactions."  Despite the current traditional stocking period for downstream industries such as refrigerants, the high prices suppressed purchasing demand, thus affecting the consumption rate of upstream raw materials. Consequently, fluorite prices remained largely unchanged.

The terminal market for refrigerants remained stable overall, with supportive policies at the end-user level expected to drive a substantial increase in demand. Fluorochemical companies operating within the quota system were confident in maintaining high prices for refrigerants. However, thehigh prices are leading to slower purchasing activity, with downstream channels primarily focusing on meeting immediate needs. Industry inventory had fallen to its lowest level in nearly two years. On the supply side, the quota system and the highly concentrated market structure continued to support market confidence, but there remained a cautious attitude towards upstream procurement. The fluorite market price remained largely stable.

Besides 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 is receiving significant support.

Market Outlook

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 in the spot market and downstream hydrofluoric acid companies mainly purchasing on demand meant that demand had not actually improved. The intense interplay between supply and demand suggests that the fluorite market price will mainly fluctuate in the short term.

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