SunSirs: Domestic Fluorite Prices Rise Slightly This Week (August 2-8)

Price trend

Domestic fluorite prices rise slightly this week. As of the weekend, the average domestic fluorite price is 3,156.25 RMB/ton, up 0.20% from the beginning of the week at 3,150 RMB/ton and down 10.71% year-on-year.

Supply side: Mines are operating normally and fluorite supply is normal

The current situation of bargaining in the domestic fluorite industry still exists. Overall, the operating rate of enterprises has increased. The upstream mining is tense, and backward mines will continue to be eliminated. For new mines, mineral surveys are still difficult. In addition, state departments want to rectify fluorite mines. Fluorite mining companies are facing increasingly stringent safety and environmental protection requirements. It is more difficult to start fluorite mines. The shortage of raw materials has restricted the start of fluorite companies. However, with the rise in temperature, the start of work of northern companies is normal, and the supply of fluorite companies in the market has not changed much. The lack of active procurement has made the spot market relatively normal. Some fluorite manufacturers have appropriate inventories, and some manufacturers have obvious intention to hold prices, causing the fluorite market to rise slightly.

Demand side: Hydrofluoric acid prices are low and refrigerant market is good

Domestic hydrofluoric acid prices remains low this week, with the mainstream negotiated price across various regions ranging from 9,800 to 10,300 RMB/ton. Some downstream hydrofluoric acid plants remain shut down, and spot hydrofluoric acid supply has remained relatively stable. Manufacturers primarily purchase hydrofluoric acid on demand, with overall hydrofluoric acid production capacity remaining at over 50%. Hydrogen fluoride companies maintain strong demand orders, while hydrofluoric acid companies are operating at a loss. They are not actively purchasing fluorite as raw material, and downstream merchants are adopting a wait-and-see approach. Due to sluggish demand, both buyers and sellers have weak market expectations. Hydrofluoric acid manufacturer prices decline in August, and fluorite prices see little increase in response to this news.

The downstream refrigerant market is trending higher. With policy support for the refrigerant industry, demand is expected to increase substantially. Fluorine chemical companies remain confident in maintaining refrigerant prices within quota control. While current high prices are contributing to a slowdown in purchasing, industry inventories are being transmitted in a healthy and orderly manner, with upstream product purchases primarily based on demand. Refrigerant prices are trending higher, with fluorite prices also seeing a slight increase.

In addition to the traditional demand of the refrigerant industry, fluorite, as an important mineral raw material in modern industry, has continuously developed demand in emerging fields. It is also used in strategic emerging industries such as new energy and new materials, as well as defense, nuclear industry and other fields, including lithium hexafluorophosphate, PVDF, graphite negative electrode, photovoltaic panels, etc. With the demand driven by new energy and semiconductor fields, the application of fluorite has received certain support.

Market outlook

The supply of domestic fluorite ore has been difficult to improve recently, and some mines have stopped production for safety inspections. The tight supply of fluorite ore is a positive support for the fluorite market, but hydrofluoric acid companies mainly purchase on demand, and demand has not actually increased. In addition, the hydrofluoric acid market remains at a low level, and there is a strong sentiment against high-priced fluorite. Overall, the fluorite market price will mainly fluctuate in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.