The domestic fluorite prices have continued to decline this week, with an average price of 3660 yuan/ton as of the weekend, a decrease of 2.17% from the early week price of 3741.25 yuan/ton, and a year-on-year increase of 19.75%.

Supply side: There is little change in the supply of low-level fluorite during 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 tight, backward mines will continue to be eliminated, and new mines will be added. Mineral investigation work is still difficult. In addition, the national department will carry out rectification of fluorite mines in the near future, and fluorite mining enterprises are facing increasingly strict safety and environmental protection requirements. Some mines have conducted safety hazard inspections, making it more difficult for fluorite mining enterprises to operate. The shortage of raw materials has limited the operation of fluorite enterprises. In addition, the impact of high temperature and rainy weather has made it difficult to increase the operation of fluorite. The supply of fluorite goods is still tight, but safety inspections are gradually coming to an end. In the later stage, fluorite operation.

Demand side: Weak demand for hydrofluoric acid, declining production of refrigerants

This week, the domestic hydrofluoric acid market trend has declined, and the mainstream price for hydrofluoric acid in various regions of China is negotiated at 10800-11200 yuan/ton. The downstream hydrofluoric acid market is weak, and some units are still shut down recently. The spot supply of hydrofluoric acid has not changed much, and manufacturers have low orders for purchasing hydrofluoric acid. The price of hydrofluoric acid is dragging down the domestic fluorite market, and some hydrofluoric acid manufacturers are purchasing on demand, causing a slight decline in the domestic fluorite market.

The downstream refrigerant market in the terminal continues to be deadlocked due to poor demand transmission. After entering the off-season of production, the market production demand weakened. In addition, the recent rainy weather has led to poor stocking of refrigerant companies, which has resulted in a lack of enthusiasm for upstream product procurement. The industry has maintained a low level of production, and the market for some refrigerant products has declined. As a result, the fluorite market has slightly declined.

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 defense and nuclear industries, 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 has maintained a high level.

Market forecast: In the short term, it is difficult to improve the supply of domestic fluorite mines. Large mines continue to operate for immediate needs, while many small and medium-sized enterprises remain in a state of shutdown. The tight supply of fluorite mines is a major positive support for the fluorite market. However, the downstream hydrofluoric acid market trend is declining, and the demand in the downstream refrigerant industry is gradually weakening. Both long and short factors are affecting the market. Chen Ling, an analyst at Shengyi Society, believes that fluorite prices may slightly fall in the later stage.