The domestic fluorite market has seen a recent upward trend, with the average price increasing by...
Fluorite prices have shown stability in late July 2025, with domestic 97% fluorite wet powder prices holding steady. However, this apparent calm masks underlying market dynamics driven by supply and demand imbalances.
The primary driver behind the recent price corrections in the domestic fluorite market is an oversupply situation. The resumption of operations at flotation plants in Northern China has significantly increased the domestic supply of fluorite. While some smaller domestic fluorite mines have faced shutdowns due to safety and environmental inspections, this supply gap has been more than adequately filled by a surge in fluorite imports, primarily from Mongolia. These imports have seen a remarkable increase of 53.59% year-on-year, effectively neutralizing the impact of domestic mine closures and ensuring ample overall supply.
On the demand side, hydrofluoric acid manufacturers, a key downstream sector for fluorite, are operating at reduced capacity due to price-related losses, leading them to prioritize only essential purchases. End-users, particularly in the refrigerant industry, are resistant to higher fluorite prices. Furthermore, traditional downstream sectors such as steel and aluminum alloys are experiencing a decline in fluorite consumption due to the sluggish performance of the real estate and infrastructure sectors. Both year-on-year and month-on-month declines in these sectors are evident.
Although there is structural growth in demand from emerging sectors such as semiconductor-grade hydrofluoric acid and photovoltaic fluoropolymer films within the new energy domain, this growth is not yet substantial enough to offset the overall weakness in demand. The resulting supply-demand imbalance has ultimately led to price declines in the fluorite market.
The recent special campaigns focused on mine safety and environmental regulations in China have further contributed to a contraction in domestic production capacity. Foreign fluorite suppliers have capitalized on this opportunity to rapidly expand their market share, further ensuring an abundant supply of fluorite in the domestic market.
With most downstream sectors, with the exception of new energy, experiencing reduced procurement volumes due to market-specific challenges, the near-term outlook for the fluorite market points towards price fluctuations and overall market volatility. Stakeholders in the fluorite market should closely monitor these evolving supply and demand dynamics to make informed business decisions. Further developments in domestic mine policies and changes in international trade relations will significantly shape the future direction of the fluorite market.
#Fluorite #MarketAnalysis #SupplyChain #ImportExport #Mining #ChinaTrade #Commodities #Chemicals
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