Price trend

Last week, domestic fluorite prices showed a slight upward trend. As of the end of the week, the average domestic fluorite price was 3,425 RMB/ton, an increase of 0.18% compared to the price of 3418.75 RMB/ton at the beginning of the week, but a year-on-year decrease of 5.29%.

Supply side: More fluorite manufacturers were on holiday, leading to reduced spot supply

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 Upstream mining operations remained tight, and outdated mines will continue to be phased out.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 faced increasingly stringent safety and environmental requirements. This had increased the difficulty of operating fluorite mines. However, the overall domestic fluorite market showed a weak supply and demand situation, characterized by a stalemate and a wait-and-see attitude. Due to low temperatures and the Spring Festival holiday, some mines had limited operations. At the same time, market prices had not met the expectations of most mining companies and processing plants, resulting in a volatile fluorite market.

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

Last week, domestic hydrofluoric acid prices remained stable, with mainstream negotiated prices in various regions of China ranging from 12,500 to 13,000 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 "high prices but no transactions." Despite the traditional stocking period for downstream industries such as refrigerants, the high prices hadsuppressed purchasing demand, thus affecting the pace of upstream raw material consumption. 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, high prices were 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, the domestic supply of fluorite ore was difficult to improve, with some mines suspending production for safety inspections. The tight supply of fluorite ore was a positive factor supporting the fluorite market, but many fluorite companies were on holiday, and downstream hydrofluoric acid companies were mainly purchasing on demand, with some purchases extending until after the Spring Festival. Overall, the fluorite market price is expected to remain stable in the short term.

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