In July, the domestic fluorite price trend declined. As of the end of the month, the average domestic fluorite price was 3591.25 yuan/ton, a decrease of 4.39% from the beginning of the month at 3756.25 yuan/ton, and a year-on-year increase of 17.51%.

Supply side: The mining operation rate is not high, and the supply of fluorite is still tight

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 renovation of fluorite mines in the near future, and fluorite mining enterprises are facing increasingly strict safety and environmental protection requirements. In addition, the high temperature and rainy weather in the southern region have increased the difficulty of operating fluorite mines, and the shortage of raw materials has limited the operation of fluorite enterprises. The supply of fluorite sources is still tight, and the decline in fluorite prices is somewhat restricted.

Demand side: Hydrofluoric acid demand, weak refrigerant, low operating level

In July, the domestic hydrofluoric acid market trend fell, and the mainstream price of hydrofluoric acid in various regions of China was negotiated at 10500-11000 yuan/ton. The downstream hydrofluoric acid market is weak and declining, with some units still in shutdown recently. There is little change in the spot supply of hydrofluoric acid, and manufacturers have low orders for purchasing hydrofluoric acid. The overall production of hydrofluoric acid is less than 60%, which has dragged down the domestic fluorite market. Some hydrofluoric acid manufacturers purchase on demand, and the domestic fluorite market trend is declining.

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 inventory of refrigerant companies, which has resulted in a lack of enthusiasm for upstream product procurement. The market for some refrigerant products has declined, which has led to a decrease in the market for fluorite.

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 national defense, nuclear industry, etc., 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 is still supported.

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. However, the downstream hydrofluoric acid market trend has declined, and the demand for downstream refrigerants has weakened. Both long and short factors have a joint impact, and Chen Ling, an analyst at Shengyi Society, believes that fluorite prices may slightly fall in the later period.