In January, the domestic price of fluorite declined, with an average price of 3343.75 yuan/ton as of the end of the month, a decrease of 5.31% from the initial price of 3531.25 yuan/ton, and a year-on-year increase of 5.73%.

Supply side: Raw ore is still tight, fluorite production is declining

The game situation in the domestic fluorite industry still exists, and overall, the operating rate of enterprises remains low. The main reason is the tension in upstream mining, and backward mines will continue to be eliminated. In terms of new mines, mineral investigation work is still difficult. In addition, mining accidents have occurred in some areas, and fluorite mining enterprises are facing increasingly strict safety and environmental requirements. Some mines are undergoing safety hazard inspections, which has increased the difficulty of operating fluorite mines, The shortage of raw materials has restricted the production of fluorite enterprises. In addition, some manufacturers in the north have been affected by rainy and snowy weather, which has limited their production. As the Spring Festival approaches, some fluorite enterprises have started to take a holiday, resulting in a decrease in spot supply of fluorite. At the same time, downstream procurement is poor, and the fluorite market is declining.

On the demand side: The price of hydrofluoric acid is declining, and the starting point of refrigerant production is low

In January, the domestic price trend of hydrofluoric acid declined, with the mainstream negotiated price in various regions of the country ranging from 10000 to 10400 yuan/ton. The price of hydrofluoric acid dropped by 2.36%, and some units are still in shutdown recently. The spot supply of hydrofluoric acid has not changed much, and the order situation of manufacturers for hydrofluoric acid is average. The decline in hydrofluoric acid price is detrimental to the domestic fluorite market, and some hydrofluoric acid manufacturers purchase according to demand. The downstream market is not good, and the domestic fluorite market is declining.

In January, the market for downstream refrigerant products in the terminal market slightly increased, and the operating rate of the refrigerant industry remained low. The procurement of raw materials was not active, and the load of refrigerant R22 manufacturers was not high. Downstream procurement needed to follow up, and some production enterprises gradually accumulated inventory. In the new year, supply gradually decreased, reducing supply pressure, and insufficient demand for dealer procurement. The price of R22 remained mainly low. The quota cycle in the refrigerant market has begun, and it is difficult for enterprises to change their reluctance to sell. The quota for R134a in China is relatively tight, and some manufacturers have raised their factory prices. Currently, the market quotation for R134a refrigerant is mostly in the range of 28000 to 29000 yuan/ton. The overall transaction volume in the refrigerant industry is relatively flat, and the production of the refrigerant industry remains sluggish with average demand. As a result, the price of fluorite has decreased.

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 decline in the fluorite market is not significant.

Market forecast: In the near future, it is difficult to improve the supply of domestic fluorite mines. Some mines have stopped production and are undergoing safety inspections. The number of companies on holiday has gradually increased. However, the purchasing sentiment of hydrofluoric acid companies is poor, and the hydrofluoric acid market trend is still declining. The upstream and downstream game situation is intensifying. Chen Ling, an analyst at Business Society, believes that the price trend of fluorite in the future will be mainly volatile.