The domestic fluorite price trend rose in August, with an average price of 3268.75 yuan/ton as of the end of the month, an increase of 3.77% from the beginning price of 3150 yuan/ton, and a year-on-year decrease of 7.62%.
Supply side: Mining operations are still tight, fluorite supply is still acceptable
The current situation of the game in the domestic fluorite industry still exists. Overall, the operating rate of enterprises has increased. 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. The difficulty of operating fluorite mines has increased, and the shortage of raw materials has restricted the operation of fluorite enterprises. However, with the rise of temperature, northern enterprises are operating normally, and the supply of fluorite enterprises in the field has not changed much. Some fluorite manufacturers have appropriate inventory, and fluorite mining enterprises are holding prices and selling goods, resulting in a higher fluorite market in August.
Demand side: Hydrofluoric acid prices rise, refrigerant market rises
The domestic price of hydrofluoric acid is on the rise, and the mainstream price for hydrofluoric acid in various regions of China is negotiated at 10200-10800 yuan/ton. The downstream hydrofluoric acid units are still shut down, and there is little change in the spot supply of hydrofluoric acid. Manufacturers mainly purchase hydrofluoric acid on demand, and the overall production of hydrofluoric acid remains at more than 50%. Hydrofluoric acid enterprises maintain essential orders, and hydrofluoric acid enterprises are in a loss making state. In September, the prices of hydrofluoric acid from major manufacturers increased, which affected the price trend of fluorite.
The downstream refrigerant market continues to rise, and the refrigerant industry is strengthening its terminal policies. Demand is expected to achieve substantial improvement, and fluorine chemical enterprises within quota control have strong confidence in raising prices in the refrigerant market. Currently, the pace of purchasing at high prices is relatively slow, but the good inventory of the industry is orderly transmitted, and upstream products are mainly purchased on demand. The trend of refrigerant market has increased, and the fluorite market has risen.
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 in national defense, nuclear industry and other fields, including lithium hexafluorophosphate, PVDF、 Graphite negative electrodes, photovoltaic panels, etc., have received certain support in the application of fluorite due to the demand for new energy and semiconductors.
Market forecast: In the near future, it is difficult to improve the supply of domestic fluorite mines, and some mines have stopped production for safety inspections. The tight supply of fluorite mines is a positive support for the fluorite market, and the mentality of buying up rather than buying down is obvious; In September, the pricing of hydrofluoric acid market increased, but caution remained towards upstream fluorite procurement. Overall, the fluorite market is expected to rise in the short term.