The domestic fluorite price trend rose in November, with an average price of 3675 yuan/ton as of the end of the month, an increase of 4.26% from the beginning price of 3525 yuan/ton, and a year-on-year decrease of 0.17%.

Supply side: Limited mining operations and tight availability of fluorite in stock

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, 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 rectify fluorite mines, and fluorite mining enterprises are facing increasingly strict safety and environmental protection requirements. Although the rectification action is coming to an end, the affected area has not narrowed. The difficulty of fluorite mining operation has increased, and the shortage of raw materials has limited the operation of fluorite enterprises. The supply of fluorite remains tight, and the inventory bottom of fluorite enterprises is low. With the supply shortage combined with the winter storage season and the recovery of demand after the year, it has become the main factor for the firm fluorite price in November.

Demand side: Hydrofluoric acid market fluctuates, refrigerant market rises

Domestic major manufacturers raised the price of hydrofluoric acid in November, and the mainstream price for hydrofluoric acid in various regions of China is negotiated at 10800-11500 yuan/ton. 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 more than 50% of hydrofluoric acid is in operation as a whole. However, manufacturers’ pricing slightly fell in December, limiting the rise of fluorite prices.

The downstream refrigerant market in the terminal is on the rise, with continuous destocking of refrigerants throughout the year. Fluorine chemical enterprises within quota control have strong confidence in maintaining stability and stabilizing prices in the refrigerant market. Currently, prices in the foreign trade market are gradually increasing, and as the end of the month approaches, spot prices for enterprises continue to be tight. The circulation market is digesting inventory, and new purchase prices are based on factory quotes. The market for some refrigerant products has risen, which has led to a rise in the fluorite market in November.

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., with the demand driven by new energy and semiconductor fields, the application of fluorite has received certain support, and the fluorite market still has support.

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. Recently, the downstream refrigerant product market has risen, but the downstream hydrofluoric acid market has fallen slightly. Overall, the fluorite market price remained strong in December, with little change.