Price trend

In February, the domestic price of fluorite rose. By the end of the month, the average domestic price of fluorite was 3,431.25 RMB/ton, up 0.37% from the beginning of the month (3,418.75 RMB/ton) and down 5.77% year-on-year.

Supply side: Many fluorite manufacturers are on holiday, leading to a decrease in spot supply

The current competitive landscape in 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 Outdated mines will continue to be phased out, and mineral surveys for new mines continue to face numerous difficulties.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 operations. However, the domestic fluorite market as a whole presents a situation of weak supply and demand and a stalemate. Affected by low temperatures and the Spring Festival holiday, the operation of some mines has been restricted, and many flotation plants have closed for holidays. At the same time, the current market price has not met the expectations of most mining companies and beneficiation plants, and the fluorite market price has risen slightly.

On the demand side: hydrofluoric acid prices remain stable, while the refrigerant market is generally flat

Domestic hydrofluoric acid prices remain stable in February, with mainstream negotiated prices in various regions ranging from 12,500 to 13,000 yuan/ton. Downstream hydrofluoric acid plants remain shut down, resulting in little change in spot supply. Manufacturers primarily purchase hydrofluoric acid on an as-needed basis, maintaining an overall operating rate of just over 50%. Hydrogen fluoride companies maintain only orders to meet immediate needs, 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. Despite the current traditional stockpiling phase in downstream industries such as refrigerants, the high prices have suppressed purchasing demand, thus affecting the digestion of upstream raw materials, resulting in little change in fluorite prices.

The refrigerant market remains 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 and the highly concentrated market share have kept market confidence stable, but companies remain cautious about upstream procurement, limiting the price increase of fluorite.

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 factor supporting the fluorite market. In addition, with the peak season for stocking up in the downstream refrigeration industry underway, fluorite companies are gradually resuming operations and some procurement has begun. Overall, the price of fluorite is expected to rise in the short term.

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