Domestic fluorite prices trended upward last week; by the end of the week, the average domestic price stood at 3,500 RMB/ton, marking a 2.0% increase from the 3,431.25 RMB/ton recorded at the start of the week and a year-on-year rise of 10.89%.
Supply side: Supplies from both domestic and overseas sources were tightening simultaneously
On the domestic front, nationwide inspections regarding mine safety and production have intensified significantly; numerous mines have suspended operations for rectification, leading to a continued contraction in the circulation of domestic raw ore. Operations at some mines and processing plants in Inner Mongolia have been halted for rectification, and most mines in key southern production regions have yet to resume output. Consequently, overall market supply is tight; mining enterprises are largely holding firm on prices and limiting sales, while fluorite producers maintain low inventory levels, driving an upward shift in price benchmarks. Although imports from Mongolia—a primary source—are gradually increasing, logistical costs and other constraints limit the actual volume entering the market, providing only moderate relief to supply pressures. The tight supply situation for fluorite persists, and market prices are trending upward.
Regarding imports, mines in Mongolia—a key source for the domestic market—halted production for maintenance in mid-July, resulting in low arrival volumes of imported fluorite in the short term. With supplies tightening both domestically and internationally, spot market inventories have declined; facing a shortage, mining enterprises are reluctant to sell and are holding firm on prices, driving fluorite prices upward.
Demand side: Confluence of multiple positive factors downstream
1. Hydrofluoric acid market trended upward; procurement volume rose
Operating rates among hydrofluoric acid producers hover at only around 50%, with most companies facing severe losses. Spot supply has contracted sharply due to simultaneous shutdowns at major hydrogen fluoride plants in the north; as a result, spot orders have been diverted to other producers, leading to tight supply and increased bargaining power for sellers. Transaction prices have risen significantly compared to the beginning of the month, and producers are showing growing interest in purchasing fluorite, signaling an expected increase in raw material consumption. However, domestic fluorite price gains remain constrained; while mainstream contract prices for August rose to 15,000-15,500 RMB/ton, demand has failed to keep pace, and there are signs of a pullback in capacity utilization.
2. Driven by Peak Season Demand for Refrigerants
Refrigerants represent the primary source of downstream demand for fluorite. Since the beginning of 2026, the prices of major refrigerant varieties—such as R32, R125, and R134a—have risen by 70% to over 180%. With the summer season marking a peak period for air conditioner and cold-chain consumption, downstream manufacturers are actively increasing their inventory replenishment. The sustained rise in the average price of R22 refrigerant has stimulated greater interest in upstream fluorite procurement.
Market Outlook:
Overall, the price floor is underpinned by mine rectifications and reduced imports on the supply side, while multiple demand-side drivers—including the peak season for refrigerants, the emerging AI liquid cooling sector, and capacity expansion in the fluorochemical industry—sustain a market characterized by a tight balance between supply and demand. However, it is worth noting that downstream demand for anhydrous hydrogen fluoride remains sluggish and capacity utilization rates have dipped; as supply and demand forces continue to contend, the market price of fluorite is expected to trend upward with some volatility.
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