SunSirs: Domestic Fluorite Market Prices Rose in August

Price trend

In August, the domestic fluorite price trended upward. By the end of the month, the average domestic fluorite price was 3,268.75 RMB/ton, up 3.77% from the price of 3,150 RMB/ton at the beginning of the month and down 7.62% year-on-year.

Analysis review

Supply side: Mine operation was still tight, and fluorite supply was still acceptable

The situation of bargaining in the domestic fluorite industry still existed. Overall, the operating rate of enterprises had increased. The upstream mining was tense, and backward mines will 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 and shipped goods, which led to a higher fluorite market in August.

Demand side: Hydrofluoric acid prices rose, refrigerant prices rose

Domestic hydrofluoric acid prices were rising, with the mainstream negotiated price across various regions ranging from 10,200 to 10,800 RMB/ton. Some downstream hydrofluoric acid plants remained shut down, and spot hydrofluoric acid supply had remained relatively stable. Manufacturers were primarily purchasing on demand, with overall hydrofluoric acid production capacity remaining at over 50%. Hydrogen fluoride companies were maintaining strong demand orders, leaving them in a loss-making position. Major hydrofluoric acid manufacturers saw pricing increases in September, and fluorite prices followed suit in response.

The downstream refrigerant market continued to rise. With policy support for the refrigerant industry, demand is 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 ore has been difficult to improve recently, and some mines have stopped production for safety inspections. The tight supply of fluorite ore was a positive support for the fluorite market, and the mentality of buying high and not buying low was obvious; the pricing of hydrofluoric acid market rose in September, but the upstream fluorite purchases were still cautious. Overall, the fluorite market will mainly rise in the short term.

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