Price trend

Recently, the price trend of domestic fluorite has continued to decline. As of the 5th, the average price of domestic fluorite was 3,547.5 RMB/ton, a decrease of 1.22% from the price of 3,591.25 RMB/ton on July 31 and a year-on-year increase of 16.07%.

Supply side: Mining operations were restricted, and there was little change in fluorite supply

The situation of the game in the domestic fluorite industry still existed. Overall, the operating rate of enterprises had not changed much. Upstream mining was tight, backward mines will continue to be eliminated, and as for new mines added, mineral investigation work was still difficult. In addition, the national department will carry out renovation of fluorite mines in the near future, and fluorite mining enterprises are facing increasingly strict safety and environmental protection requirements. In addition, the high temperature and rainy weather in the southern region had increased the difficulty of fluorite mining operation, and the shortage of raw materials had limited the operation of fluorite enterprises. The supply of fluorite remained tight. However, the import of fluorite from Mongolia had a significant impact on the northern fluorite market, and the trend of the northern fluorite market had declined.

Demand side: Weak demand for hydrofluoric acid, low refrigerant start-up

Recently, the trend of domestic hydrofluoric acid market had declined, and the mainstream price of hydrofluoric acid in various regions of China was negotiated at 10,500-11,000 RMB/ton. The downstream hydrofluoric acid market was weak and declining, with some units still in shutdown recently. There was little change in the spot supply of hydrofluoric acid, and manufacturers had low orders for purchasing hydrofluoric acid. The overall production of hydrofluoric acid was less than 60%, which had dragged down the domestic fluorite market. Some hydrofluoric acid manufacturers purchased on demand, and the domestic fluorite market trend was declining.

The downstream refrigerant market in the terminal continued to be deadlocked due to poor demand transmission. After entering the off-season of production, the market production demand weakened. In addition, the recent rainy weather had led to poor inventory of refrigerant companies, which had resulted in a lack of enthusiasm for upstream product procurement. The market for some refrigerant products had declined, and as a result, the fluorite market was weak and difficult to change.

In addition to the traditional demand in the refrigerant industry, fluorite, as an important mineral raw material for modern industry, was 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 had received certain support, and the fluorite market was still supported.

Market outlook

Recently, it has been 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. However, the downstream hydrofluoric acid market trend has declined, and the demand for downstream refrigerants has weakened. In addition, imported fluorite sources have had a certain impact on the market, and there are many negative factors. The analyst from SunSirs believes that the price trend of fluorite will decline in the later stage.

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