Last week, domestic fluorite prices fell. As of last weekend, the average domestic fluorite price was 3,525 RMB/ton, down 2.25% from the price of 3,606.25 RMB/ton at the beginning of last week, and down 7.39% year-on-year.
Supply side: Normal operation and normal fluorite supply
The current situation of domestic fluorite industry game still exists. Overall, the operation 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, the state departments need to rectify fluorite mines. Fluorite mining enterprises face increasingly stringent safety and environmental protection requirements. The difficulty of fluorite mine operation has increased. The shortage of raw materials has restricted the operation of fluorite enterprises.
However, as the temperature rises, northern enterprises have gradually started operations, and the supply of fluorite enterprises in the field has increased. The lack of active procurement has made the spot in the field more sufficient. The fluorite market continued to decline this week.
Demand side: hydrofluoric acid prices are temporarily stable, and refrigerant market is still good
This week, domestic hydrofluoric acid prices are temporarily stable, and the mainstream price negotiated by various regions of domestic hydrofluoric acid is 11,200-11,700 RMB/ton.
Some downstream hydrofluoric acid units are still in shutdown, and the spot supply of hydrofluoric acid has not changed much. Manufacturers mainly purchase hydrofluoric acid on demand. The overall operation of hydrofluoric acid remains more than 50%. Hydrogen fluoride companies maintain rigid demand orders. Hydrofluoric acid companies are in a loss-making state. They are not active in purchasing raw material fluorite. Downstream merchants are in a wait-and-see mood. Both buyers and sellers have weak expectations for the future market due to poor demand digestion. Recently, some hydrofluoric acid manufacturers have a downward trend. Affected by this news, the price of fluorite has fallen.
The market situation of the terminal downstream refrigerant is still good. The terminal policy of the refrigerant industry is exerted, and demand is expected to achieve substantial growth. Fluorine chemical companies within the quota control have strong confidence in the refrigerant market price. The current high-price purchase rhythm is slow, but the industry inventory is transmitted in a benign and orderly manner. The terminal is less active in stocking due to high prices, and mainly purchases upstream products on demand. The refrigerant market trend is general, and the fluorite market continues to decline.
In addition to the traditional demand of the refrigerant industry, fluorite, as an important mineral raw material for modern industry, has a growing demand in emerging fields. It is also used in strategic emerging industries such as new energy and new materials, as well as defense and nuclear industries, including lithium hexafluorophosphate, PVDF, graphite anode, photovoltaic panels, etc. With the demand driven by new energy and semiconductors, the application of fluorite has received certain support.
Forecast for the future market: The supply of domestic fluorite mines is difficult to improve recently. Some mines have stopped production for safety inspections. The tight supply of fluorite mines is a positive support for the fluorite market. However, the lack of active fluorite procurement in some regions has led to an increase in inventory. In addition, the downstream has a serious resistance to high prices. Hydrofluoric acid companies mainly purchase on demand, and demand has not actually increased. Overall, the fluorite market price will fall slightly in the short term.
