SunSirs: Domestic Fluorite Prices Is Temporarily Stable This Week (December 13-19)

Price trend:

This week, domestic fluorite prices remained stable. As of the end of the week, the average domestic price of fluorite was 3,368.75 RMB/ton, unchanged from the beginning of the week, representing a year-on-year decrease of 8.43%.

Supply side: Fluorite spot supply is normal, but inventory levels are high

The domestic fluorite industry still faces ongoing challenges and competition. Overall, there has been little change in the operating rates of enterprises. Upstream mining operations remain tight, and outdated mines will continue to be phased out. Regarding new mines, mineral exploration work remains difficult, and coupled with the government's efforts to rectify fluorite mines, fluorite mining companies face increasingly stringent safety and environmental requirements. This has increased the difficulty of operating fluorite mines. However, the supply of fluorite on the spot market is normal, and social inventories remain high with no significant signs of depletion. The supply side maintains a stable production pace. Furthermore, the slowdown in production activities before the end of the year and the "buy on the rise, not on the fall" mentality have led to a contraction in short-term restocking.  Recently, downstream purchasing has been inactive, resulting in poor fluorite sales. The fluorite market is mainly characterized by low-level fluctuations.

Demand side: Hydrofluoric acid prices remain stable, and the refrigerant market is performing generally

This week, domestic hydrofluoric acid prices remain stable, with mainstream prices in various regions ranging from 11,700 to 12,200 RMB/ton. Some downstream hydrofluoric acid plants are still shut down, and the supply of hydrofluoric acid spot goods remains largely unchanged. Manufacturers are mainly purchasing hydrofluoric acid on an as-needed basis, and overall production capacity is maintained at slightly over 50%. Hydrofluoric acid companies are maintaining orders based on essential needs and are currently operating at a loss. Recently, hydrofluoric acid traders have not been actively purchasing. The fluorite market is experiencing intense competition between supply and demand, resulting in a stalemate of "prices without transactions," and in the absence of strong demand support, fluorite market prices remain low.

The downstream refrigerant market is performing reasonably well, with supportive policies boosting demand in the refrigerant industry. Fluorochemical companies operating within quota limits are confident in maintaining high prices for refrigerants. However, the current high prices are leading to a slower pace of purchasing, and although there have been no significant transactions in the spot market, companies are restricting supply and actively supporting prices. The refrigerant market remains supported, but there is still a cautious attitude towards upstream procurement, and the fluorite market price remains stable for the time being.

In addition to the traditional demand from the refrigerant industry, fluorite, as an important mineral raw material for modern industry, is experiencing growing demand in emerging fields. It is also used in strategic emerging industries such as new energy and new materials, as well as in defense and nuclear industries. Applications include lithium hexafluorophosphate, PVDF, graphite anodes, and photovoltaic panels. With demand driven by the new energy and semiconductor sectors, the application of fluorite is receiving significant support.

Market Outlook

Recently, domestic fluorite supply has been difficult to improve, with some mines suspending production for safety inspections. The tight supply of fluorite is a positive factor supporting the fluorite market, but high inventories of fluorite spot goods and downstream hydrofluoric acid companies mainly purchasing on demand mean that demand has not actually improved. The market is experiencing intense competition between supply and demand. Overall, the fluorite market price is expected to fluctuate at a low level in the short term.

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