This week, the domestic fluorite price trend has declined. As of the weekend, the average domestic fluorite price was 3437.5 yuan/ton, a decrease of 0.72% from the early week price of 3462.5 yuan/ton and a year-on-year increase of 9.78%.

Supply side: Limited mining operations and low fluorite inventory

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 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 rectification action is coming to an end in August, but the affected area has not narrowed. The difficulty of starting fluorite mines has increased, and the shortage of raw materials has limited the operation of fluorite enterprises. The supply of fluorite sources is still tight, and the inventory of fluorite enterprises is low. However, the import of fluorite from Mongolia has a significant impact on the northern fluorite market, and the trend of fluorite.

Demand side: Hydrofluoric acid demand, weak refrigerant, low operating level

Recently, the domestic hydrofluoric acid market has fluctuated at a low level, and the mainstream price for hydrofluoric acid in various regions of China is negotiated at 10500-11000 yuan/ton. The downstream hydrofluoric acid market is consolidating weakly, with some units still being shut down recently. There is little change in the spot supply of hydrofluoric acid, and manufacturers have low orders for purchasing hydrofluoric acid. The overall production of hydrofluoric acid is less than 60%, which has dragged down the domestic fluorite market. Some hydrofluoric acid manufacturers purchase on demand, and the domestic fluorite market is sluggish.

The downstream refrigerant market in the terminal continues to be deadlocked due to poor demand transmission. After entering the off-season of production, market production demand weakens. In addition, refrigerant companies have poor stocking conditions and are not actively purchasing upstream products. The market for some refrigerant products has declined, and as a result, the fluorite market is 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, 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, 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 have received certain support, and the fluorite market is still supported.

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 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 formed a certain impact on the market, and there are many negative factors. Chen Ling, an analyst at Business Society, believes that fluorite prices will fluctuate at a low level in the later stage.