SunSirs: Domestic Fluorite Prices Rise Slightly This Week (August 9-15)

Price trend

Domestic fluorite prices rise this week. As of the weekend, the average domestic fluorite price is 3,168.75 RMB/ton, up 0.40% from the beginning of the week at 3,156.25 RMB/ton and down 8.48% year-on-year.

Analysis review

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 need 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 operation of northern companies is normal, the supply of fluorite companies on the site has not changed much, and some fluorite manufacturers have appropriate inventories. Fluorite mining companies' concentrators hold back prices and ship goods, causing the fluorite market to rise.

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

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, leaving little change in spot supply. Manufacturers primarily purchase on-demand, with overall hydrofluoric acid production capacity remaining at over 50%. Hydrogen fluoride companies maintain strong demand, while operating at a loss. They are not actively purchasing fluorite as raw material, leading to a wait-and-see attitude among downstream businesses. Both buyers and sellers have weak market expectations due to sluggish demand, leading to a limited increase in fluorite prices.

The downstream refrigerant market is seeing gains. 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 rising.

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 mines has been difficult to improve recently, and some mines have stopped production for safety inspections. The tight supply of fluorite mines is a positive support for the fluorite market, and the mentality of buying high and not buying low is obvious; however, hydrofluoric acid companies mainly purchase on demand, and demand has not actually increased. In addition, the hydrofluoric acid market remains at a low level. Under the influence of both bullish and bearish factors, the fluorite market price is likely to rise in the short term and difficult to fall.

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