Domestic fluorite prices trended upward in August; by the end of the month, the average domestic price stood at 3,606.25 RMB/ton, marking a 5.10% increase from the 3,431.25 RMB/ton recorded at the beginning of the month and a year-on-year rise of 13.36%.
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. Driven by stricter national and local regulatory policies, operating rates in Inner Mongolia have dropped sharply, while in southern regions like Zhejiang and Fujian, only a few mines have resumed production—with most facing uncertain timelines for reopening. Consequently, the tight supply situation in the domestic market is unlikely to ease in the short term, strengthening the bargaining power of mining enterprises and maintaining the scarcity of fluorite spot supplies. Data indicates that fluorite output in Alxa League, Inner Mongolia, fell by 62.3% year-on-year in the first half of the year—clearly reflecting the supply-side contraction—which drove an upward trend in fluorite prices during August.
Regarding imports, mines in Mongolia—a key source for the domestic market—halted production for maintenance in mid-July. Although import volumes from Mongolia gradually increased in August, factors such as logistics costs limited the actual quantity entering the domestic market, making it difficult to effectively alleviate the supply crunch. With supplies tightening from both domestic and foreign sources, spot market inventories have declined; facing a shortage, mining enterprises are reluctant to sell and are holding firm on prices, driving up the market price of fluorite.
Demand side: Confluence of multiple positive factors downstream
1. Hydrofluoric acid prices were rising, and procurement increased compared to before.
Hydrofluoric acid plants are operating at only about 50% capacity, with most suffering heavy losses. Due to widespread shutdowns among major hydrogen fluoride producers in the north, spot supply has contracted sharply; orders previously handled by these plants have shifted to other manufacturers, leading to tight spot availability and increased bargaining power for sellers. Consequently, negotiated prices have risen significantly compared to the beginning of the month, and while corporate interest in purchasing fluorite is growing—driving expectations of higher raw material consumption—domestic fluorite price gains remain constrained. This limitation stems from the fact that, despite mainstream contract prices rising to 15,000–15,500 RMB/ton in August, downstream demand has failed to keep pace, and capacity utilization rates are showing signs of decline.
2. Driven by Peak Season Demand for Refrigerants
Refrigerants represent the primary source of downstream demand for fluorite. Since the beginning of 2026, prices for major refrigerant varieties—such as R32, R125, and R134a—have surged by 70% to over 180%. In the third quarter of 2026, prices for long-term supply contracts between major air conditioner manufacturers and refrigerant suppliers saw significant increases; August, marking the height of summer, is a peak consumption season for air conditioning and cold chain logistics, driving up demand for proactive inventory restocking by downstream factories. Amidst the rigid constraints of production quotas for third-generation refrigerants (HFCs)—where the year-on-year increase in national production quotas remained below 1%—refrigerant prices have stayed high, thereby boosting procurement activity for upstream fluorite.
Market Outlook:
Overall, mine rectification and reduced imports on the supply side have established a solid price floor, while the peak season for refrigerants, the emerging AI liquid cooling sector, and capacity expansion in the fluorochemical industry are driving demand from multiple fronts, maintaining 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; the tug-of-war between supply and demand continues, and fluorite prices are expected to trend upward with some volatility in the period ahead.
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