The domestic fluorite price trend rose in February, with an average price of 3431.25 yuan/ton as of the end of the month, an increase of 0.37% compared to the beginning of the month price of 3418.75 yuan/ton, and a year-on-year decrease of 5.77%.
Supply side: Fluorite manufacturers have more holidays and reduced spot supply
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 still tight, and backward mines will continue to be eliminated. In terms of new mines, mineral investigation work is still difficult. In addition, national departments need to reform fluorite mines, and fluorite mining enterprises are facing increasingly strict safety and environmental protection requirements. The difficulty of starting fluorite mines has increased. However, the domestic fluorite market as a whole presents a weak supply-demand situation and a stalemate. Due to low temperature weather and the Spring Festival holiday, some mines are limited in operating, and flotation plants have more holidays. At the same time, the current market price has not met the psychological expectations of most mining enterprises and beneficiation plants, and the fluorite market has slightly risen.
Demand side: Hydrofluoric acid price stable, refrigerant market average
The domestic price trend of hydrofluoric acid remained stable in February, with mainstream prices ranging from 12500-13000 yuan/ton negotiated in various regions of China. The downstream hydrofluoric acid equipment is still in shutdown, 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%. Fluorine enterprises maintain essential orders, while hydrofluoric acid enterprises are in a loss making state. Recently, hydrofluoric acid merchants have not been actively purchasing, and the fluorite market is in a fierce game between supply and demand, falling into a “price but no market” deadlock. Despite being in the traditional stocking stage of downstream refrigerant and other industries, the high prices have suppressed procurement demand, thereby affecting the digestion rhythm of upstream raw materials. Fluorite prices have not changed much.
The overall stability and operation of the terminal refrigerant market have been maintained, and the terminal policies of the refrigerant industry have been strengthened. Demand is expected to achieve substantial improvement. Fluorine chemical enterprises within quota control have strong confidence in raising prices in the refrigerant market. Currently, the pace of high price procurement is relatively slow, and downstream channels mainly focus on stocking up for essential needs. Industry inventory has dropped to a low level in nearly two years; The supply side is constrained by the quota system, coupled with a highly concentrated industry share pattern, and market confidence remains stable. However, a cautious attitude towards upstream procurement is still held, and the price increase of fluorite market is limited.
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. In addition, with the start of the downstream refrigeration industry’s stocking season, fluorite enterprises are gradually starting production, and some purchases have begun. Overall, the fluorite market price trend is expected to rise in the short term.
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