In December, the domestic fluorite price trend slightly declined. As of the end of the month, the average domestic fluorite price was 3635 yuan/ton, a decrease of 1.09% from the beginning of the month at 3675 yuan/ton, and an increase of 2.57% year-on-year.

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, backward mines will continue to be eliminated, and new mines will be added. 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 operating fluorite mines has increased, and the shortage of raw materials has limited the operation of fluorite enterprises. The supply of fluorite remains tight. With the supply shortage and winter storage season, the domestic fluorite price market has not fallen significantly.

Demand side: Hydrofluoric acid market declines, refrigerant production is sluggish

The pricing of hydrofluoric acid in China declined in December, with mainstream prices ranging from 10800-11500 yuan/ton negotiated in various regions. 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 the overall production of hydrofluoric acid remains at around 50%. Downstream hydrofluoric acid enterprises are not actively purchasing, resulting in poor fluorite sales and a slight decline in the fluorite market.

The downstream refrigerant market is on the rise, with continuous destocking of refrigerants within the year. Fluorine chemical companies within quota control have strong confidence in maintaining stability and price stability in the refrigerant market. Currently, foreign trade market prices are gradually increasing, and enterprise spot prices remain tight towards the end of the month. The circulation market is digesting inventory, and new purchase prices are based on factory quotes. However, the operating rate of the refrigerant industry has remained low recently, and upstream product purchases are not active, with fluorite market prices mainly fluctuating.

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, and the refrigerant industry has been sluggish. Overall, the fluorite market price is mainly fluctuating.