SunSirs: Domestic Fluorite Prices Rose Slightly Last Week (August 16-22)

Price trend

Domestic fluorite prices rose slightly last week. As of the weekend, the average domestic fluorite price was 3,181.25 RMB/ton, up 0.39% from the beginning of the week at 3,168.75 RMB/ton and down 7.62% year-on-year.

Supply side: Mines were operating normally and fluorite supply was normal

As of August 22, the situation of bargaining in the domestic fluorite industry still existed. Overall, the operating rate of enterprises increased. The upstream mining was tense, and backward mines would continue to be eliminated. For new mines, mineral surveys were still difficult. In addition, state departments needed to rectify fluorite mines. Fluorite mining companies were facing increasingly stringent safety and environmental protection requirements. It was more difficult to start fluorite mines. The shortage of raw materials had restricted the start of fluorite companies. However, with the rise in temperature, the operation of northern companies was normal, the supply of fluorite companies on the site had not changed much, and some fluorite manufacturers had appropriate inventories. Fluorite mining companies' concentrators held back prices to ship goods, causing the fluorite market to rise slightly.

Demand side: Hydrofluoric acid prices were low and refrigerant prices were rising

Domestic hydrofluoric acid prices remained low last week, with the mainstream negotiated price across various regions ranging from 9,800 to 10,300 RMB/ton. Some downstream hydrofluoric acid plants remained shut down, leaving little change in spot supply. Manufacturers primarily purchased on-demand, with overall hydrofluoric acid production capacity remaining at over 50%. Hydrogen fluoride companies maintained rigid orders, while operating at a loss. They were not actively purchasing fluorite as raw material, leading to a wait-and-see attitude among downstream businesses. Both buyers and sellers had weak market expectations due to sluggish demand, leading to a limited increase in fluorite prices.

The downstream refrigerant market continued to rise. With policy support for the refrigerant industry, demand was expected to increase substantially. Fluorine chemical companies remained confident in maintaining refrigerant prices within quota control. While purchasing was slow at high prices, industry inventories were being transmitted in a healthy and orderly manner, with upstream product purchases primarily based on demand. Refrigerant prices had risen, and the fluorite market was also gaining momentum.

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 was a positive support for the fluorite market, and the mentality of buying high and not buying low was obvious; however, hydrofluoric acid companies mainly purchased on demand, and demand has not actually increased. In addition, the hydrofluoric acid market remained 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.

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