On August 11, the comprehensive benchmark price for fluorspar was 3,506.25 RMB/ton, up from 3,431.25 RMB/ton on August 1—a cumulative monthly increase of 2.19%. Viewed over a longer timeframe, the market has shown a continuous upward trend over the past thirty trading days, with price levels steadily rising; current prices sit in the upper range of the annual cycle, leaving limited room before reaching the year’s peak. The market has signaled a clear upward trend, with ex-factory quotes raised simultaneously across major domestic production regions, reflecting a consistent pattern of market strengthening.
Domestic fluorspar production is concentrated in Jiangxi, Inner Mongolia, Zhejiang, Fujian, and Hunan. Throughout the year, strict oversight regarding mine safety and environmental protection has remained intense; underground mines and processing plants in many areas have undergone periodic shutdowns for rectification, leading to a significant contraction in raw ore output and a continued decline in circulating spot inventory, keeping overall industry stock levels low. Regionally, Inner Mongolia saw a sharp year-on-year drop in fluorspar output during the first half of the year, while numerous mines in the south remain unable to resume normal operations pending compliance reviews, resulting in a persistent supply gap for domestic material. Imports have provided limited relief; monthly overseas arrivals offer only minor alleviation of localized shortages and fail to reverse the overall tight supply situation. A prevailing reluctance among miners to sell—coupled with a determination to hold up prices—has characterized the market for the past month, serving as the fundamental support for the sustained price rise.
The downstream hydrofluoric acid market has risen in tandem, directly transmitting cost support upstream as demand for fluorochemical raw materials steadily materializes. With rigid annual production quotas in place for third-generation refrigerants limiting supply growth, long-term contract prices for air-conditioning refrigerants were generally raised entering the third quarter; simultaneous restocking demand from domestic and international refrigeration industries has driven a steady increase in raw material procurement by hydrofluoric acid plants. Meanwhile, stable, long-term demand from emerging sectors—such as liquid cooling for new energy vehicles, high-purity electronic fluorides, and high-end fluororesins—has further expanded downstream consumption channels for fluorspar, driving raw material procurement demand across multiple dimensions. At present, downstream factories are primarily purchasing on an as-needed basis; there is limited bulk stockpiling, and demand growth remains moderate, with no signs of a buying surge.
Spot prices across major domestic production regions are rising in tandem; ex-factory quotes for mainstream 97% wet powder have been raised in Jiangxi and Zhejiang, while prices in Inner Mongolia remain relatively lower, with regional price differentials determined by logistics costs. Shipment paces at production sites are steady, and the volume of circulating spot goods is limited; suppliers are not engaging in low-price dumping, and while market inquiry activity remains high relative to actual transactions, overall trading remains moderately robust.
Analyzing the supply-demand fundamentals of the industry chain, the supply contraction resulting from mine remediation is unlikely to ease in the short term. Meanwhile, the peak season for refrigerants and demand from the emerging fluorochemical sector provide a long-term floor for prices, with multiple bullish factors supporting fluorite prices at high levels. However, as prices are already in the upper-middle range for the year, upward momentum is constrained by the downstream sector’s cost tolerance. Without the catalyst of large-scale stockpiling, a sharp, one-sided price surge is unlikely; instead, the market is expected to continue fluctuating at high levels. Future price trends will depend on the pace of domestic mine restarts, overseas refrigerant restocking cycles, and the overall operating rates of the downstream fluorochemical industry.
Source: https://www.sunsirs.com/commodity-news/petail-35197.html
