This week, the trend of domestic fluorite prices has stopped falling and stabilized. As of the weekend, the average price of domestic fluorite was 3375 yuan/ton, unchanged from the beginning of the week at 3375 yuan/ton, and remained stable year-on-year.

Supply side: Limited mining operations and tight supply of fluorite

The current situation of the game in the domestic fluorite industry still exists. Overall, the operating rate of enterprises has not changed much. Upstream mining is tight, backward mines will continue to be eliminated, and new mines will be added. Mineral investigation work is still difficult. In addition, national departments need to rectify fluorite mines, and fluorite mining enterprises are facing increasingly strict safety and environmental protection requirements. Although the rectification action is coming to an end, the affected area has not narrowed. The difficulty of operating fluorite mines has increased, and the shortage of raw materials has limited the operation of fluorite enterprises. The supply of fluorite sources is still tight, and fluorite enterprises have low inventory levels. Recently, the fluorite market has stopped falling.

Demand side: Weak demand for hydrofluoric acid, refrigerant market has risen slightly

Recently, the domestic hydrofluoric acid market has fluctuated at a low level, with mainstream prices ranging from 10300 to 10800 yuan/ton negotiated in various regions of China. The downstream hydrofluoric acid market is consolidating weakly, with some units still being shut down recently. There is little change in the spot supply of hydrofluoric acid, and manufacturers have low orders for purchasing hydrofluoric acid. The overall production of hydrofluoric acid is less than 60%, which has dragged down the domestic fluorite market. Some hydrofluoric acid manufacturers purchase on demand, and downstream demand is poor. The domestic fluorite market remains low.

The downstream refrigerant market has seen some market trends rise, with rapid digestion of summer after-sales demand and continued destocking throughout the year. Fluorine chemical companies within quota control have strong confidence in maintaining stable prices in the refrigerant market. Currently, prices in the foreign trade market are gradually increasing, with upstream products being mainly purchased on demand. The market for some refrigerant products has risen, which has led to a halt in the decline of the fluorite market.

In addition to the traditional demand in the refrigerant industry, fluorite, as an important mineral raw material for modern industry, is constantly developing in emerging fields. It is also applied in strategic emerging industries such as new energy and new materials, as well as national defense, nuclear industry, etc., including lithium hexafluorophosphate, PVDF, graphite negative electrode, photovoltaic panel, etc. With the demand driven by new energy and semiconductor fields, fluorite applications have received certain support, and the fluorite market is still supported.

Market forecast: In the near future, it is difficult to improve the supply of domestic fluorite mines, and some mines have stopped production and undergone safety inspections. The tight supply of fluorite mines is a major positive support for the fluorite market. Recently, the downstream refrigerant product market has risen, but the downstream hydrofluoric acid market is weak. In addition, imported fluorite sources have formed a certain impact on the market, and both long and short factors have jointly affected it. Chen Ling, an analyst at Business Society, believes that fluorite prices will mainly fluctuate in the later stage.