In June, the price trend of domestic fluorite slightly declined. As of the end of the month, the average price of domestic fluorite was 3781.25 yuan/ton, a decrease of 0.82% from the initial price of 3812.5 yuan/ton, and a year-on-year increase of 21.29%.

On the supply side: low mining operation rate and tight supply of fluorite

The game situation in the domestic fluorite industry still exists, and 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 continue to be added. Mineral investigation work is still difficult. In addition, recent national departments will carry out rectification and renovation of fluorite mines, and fluorite mining enterprises are facing increasingly strict safety and environmental requirements. In addition, an accident at a certain mine in Jiangxi has caused some mines in the region to undergo safety hazard inspections. The difficulty of operating fluorite mines has increased, and the shortage of raw materials has restricted the operation of fluorite enterprises. The supply of fluorite goods is still tight, and the decline in fluorite prices is limited.

Demand side: Weak demand for hydrofluoric acid, declining refrigerant production

In June, the domestic hydrofluoric acid market trend declined, and the mainstream price of hydrofluoric acid negotiated by various regions in China was 11000-11500 yuan/ton. The downstream hydrofluoric acid market is weak, and some devices are still in shutdown recently. There is not much change in the spot supply of hydrofluoric acid, and manufacturers have lower orders for hydrofluoric acid. The price of hydrofluoric acid is dragging down the domestic fluorite market. Some hydrofluoric acid manufacturers purchase on demand, and the domestic fluorite market has slightly declined.

The downstream refrigerant market in the terminal continues to be deadlocked due to poor demand transmission. After entering the off-season of production, the market’s production demand has weakened. In addition, the recent rainy weather has continued, and refrigerant companies have poor stocking conditions, making them less proactive in purchasing upstream products. The market for some refrigerant products has declined, and as a result, the market for fluorite has slightly declined.

In addition to the traditional demand in the refrigerant industry, fluorite, as an important mineral raw material in 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 and nuclear industry, including lithium hexafluorophosphate, PVDF, graphite negative electrodes, photovoltaic panels, etc. With the driving force of demand in new energy and semiconductor fields, fluorite applications have received certain support, and the fluorite market has maintained a high level.

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. However, the trend of downstream hydrofluoric acid market is declining, and the demand for downstream refrigerant industry is gradually weakening. Both long and short factors are affecting the market. Chen Ling, an analyst at Business Society, believes that fluorite prices may slightly decline in the future.