The price trend of domestic fluorite in October has declined slightly. As of the end of the month, the average price of domestic fluorite was 3537.5 yuan/ton, a decrease of 2.01% from the beginning of the month at 3610 yuan/ton, and an increase of 0.71% year-on-year.

Supply side: Low level fluorite in stock is normal for mining operations
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 operating fluorite mines has increased, and the shortage of raw materials has limited the operating rate of fluorite enterprises. The operating rate of some mines in the south is relatively low, and the supply of fluorite enterprises in the field is tight. However, due to the mentality of buying up rather than buying down, the purchasing intention of merchants in the field is not obvious, and the fluorite market. With the decrease in temperature in the north, the winter shutdown period for mines and beneficiation plants in the northern region is approaching, and market supply is further tightening. At the same time, demand is not improving, and the supply and demand sides continue to play a game, causing the fluorite market to fall from a high level.
Demand side: The price of hydrofluoric acid has declined, and the refrigerant market is still acceptable
In October, the domestic price of hydrofluoric acid declined, and the mainstream price for hydrofluoric acid in various regions of China was negotiated at 12000-12500 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%. 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. In the absence of strong demand support, the price of fluorite market has rebounded.
The downstream refrigerant market in the terminal is still promising, and the terminal policies of the refrigerant industry are being strengthened. 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 high price procurement is relatively slow, but the industry’s inventory is transmitting in a positive and orderly manner, and upstream products are mainly purchased on demand. The trend of refrigerant market has increased, but caution is still held towards upstream procurement. Hydrofluoric acid enterprises are cautious in procurement, and the price of fluorite market is declining.
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 and undergone safety inspections. The tight supply of fluorite mines is a positive support for the fluorite market. In addition, the supply of fluorite in the north will become tighter in the later period. However, downstream hydrofluoric acid enterprises will mainly purchase on demand, and demand has not actually improved. The fierce game between supply and demand, overall, the fluorite market price is mainly volatile in the short term.