Fluorite Market Analysis: October 2025 - A Shifting Landscape

October 2025 presented a dynamic picture for the fluorite market. While the first half of the month saw prices climbing to a peak around the 15th, a subsequent decline, particularly sharp after October 27th, resulted in a 2.01% price drop compared to the beginning of the month. However, year-over-year, prices remained 0.71% higher.

On the supply side, domestic fluorite availability saw a slight increase compared to September. Overall, fluorite plants in China maintained normal operating rates. However, environmental regulations and national security concerns continued to keep some small and medium-sized enterprises (SMEs) offline. The fact that Northern Chinese fluorite flotation plants had not yet ceased operations resulted in a supply level roughly equivalent to the previous month.

Demand drivers painted a mixed picture.

Hydrogen Fluoride (HF): Price increases for HF that started in August and continued through September created a wave of optimism among some producers, stimulating production. However, insufficient end-user demand led to growing inventory pressures, resulting in reduced fluorite purchases. The traditional refrigerant industry underperformed, with low operating rates except for the initial period of quota allocation. This resulted in weak anhydrous HF consumption. Similarly, the downstream refrigerant market exhibited weak terminal demand and cautious procurement behavior.

New Energy Sector: The lithium hexafluorophosphate (LiPF6) market experienced a surge in October, with spot prices increasing significantly. Consolidation in the industry, stricter environmental regulations impacting capacity expansion, and rising energy costs in Southwest China all contributed to supply constraints. Simultaneously, demand from both energy storage (domestic installations and overseas residential storage orders) and electric vehicle battery applications increased significantly, boosting demand for high-energy-density batteries. Electronic grade hydrofluoric acid (UPSSS grade) continued its robust performance, supported by the growing adoption of liquid cooling technologies in AI data centers and the high utilization rates of semiconductor fabs. However, growth in fluoropolymers like PTFE and fluoroelastomers, while still expanding, is expected to slow from an average of 6.2% to 4.5% due to industrial restructuring.

Other Traditional Industries: The steel market entered the tail end of its peak season in October, with demand facing increasing pressure. Construction steel demand declined due to the onset of winter in Northern China, slowing down infrastructure projects. The aluminum alloy market experienced structural divergence, with the overall industry gradually transitioning to its off-season.

Looking Ahead: Ample domestic fluorite supply coupled with reduced demand from hydrogen fluoride producers suggests potential for continued price volatility. While the new energy sector remains a strong source of demand, it may not fully compensate for declines in traditional industries. As winter approaches and Northern fluorite supplies tighten, a fierce battle between supply and demand is anticipated. Short-term fluorite prices are expected to remain volatile.

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