Price trend

Domestic fluorite prices remained stable this week, with the average price at the end of the week at 3,425 RMB/ton, unchanged from the beginning of the week and down 5.61% year-on-year.

Supply side: More fluorite manufacturers were taking holidays, resulting in a decrease in spot supply

The competitive landscape in the domestic fluorite industry remained unchanged. Overall, the operating rate of enterprises had not changed significantly, and upstream mining remained tight. Outdated mines will continue to be phased out, and mineral surveys for new mines will continue to face numerous difficulties. In addition, government departments were required to rectify fluorite mines, and fluorite mining companies were facing increasingly stringent safety and environmental protection requirements, making it more difficult to start operations. However, the domestic fluorite market as a whole presented a situation of weak supply and demand and a stalemate. Affected by low temperatures and the Spring Festival holiday, the operation of some mines had been restricted. At the same time, the market prices had not met the expectations of most mining companies and beneficiation plants, and the fluorite market was mainly stable.

On the demand side: hydrofluoric acid prices remained stable, while the refrigerant market was general

Domestic hydrofluoric acid prices remained stable this week, with mainstream negotiated prices in various regions ranging from 12,500 to 13,000 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 orders only to meet immediate needs, while hydrofluoric acid companies were 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. Despite the traditional stockpiling phase in downstream industries such as refrigerants, the high prices had suppressed purchasing demand, thus affecting the digestion of upstream raw materials, resulting in little change in fluorite prices.

The refrigerant market remained stable overall. With supportive policies from the refrigerant industry's end-user sector, demand is expected to see a substantial increase. Fluorochemical companies within the quota control framework have strong confidence in maintaining refrigerant prices, and procurement is proceeding at a slower pace due to current high prices. Downstream channels are primarily focused on stockpiling to meet immediate needs, and industry inventory has fallen to its lowest level in nearly two years. On the supply side, the quota system, coupled with a highly concentrated industry share, has maintained stable market confidence, but companies remain cautious about upstream procurement, resulting in stable fluorite market prices.

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, more fluorite companies are taking holidays, and downstream hydrofluoric acid companies are mainly purchasing on demand, with some purchases continuing until after the Spring Festival. Overall, the price of fluorite is expected to remain stable in the short term.

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