Fluorite Market Update: June 2025-Supply Surplus Drives Price Decline

The domestic fluorite market continued its downward trend in mid-June 2025. As of mid-month, the price of domestic fluorite (97% wet powder) had fallen by approximately RMB 225/ton compared to the beginning of June. While prices remained relatively stable around RMB 3400-3500/ton in the first week of June, a sharp decline occurred on June 12th, pushing prices below RMB 3300/ton.

On the supply side, the market is currently experiencing a surplus of fluorite. Northern fluorite flotation plants are operating normally, maintaining a healthy operating rate. Although customs data for May fluorite imports is not yet available, April figures suggest that import volumes continued to increase year-on-year.

Demand, however, is weakening. Domestic hydrofluoric acid prices continued to decline, falling by approximately RMB 500/ton compared to the beginning of June. With several hydrofluoric acid plants remaining offline and overall operating rates hovering around 50%, manufacturers are primarily purchasing fluorite to meet immediate needs. The hydrofluoric acid industry is facing losses, further dampening demand for raw material fluorite.

Despite the strong pricing confidence among refrigerant manufacturers due to quota controls (with R22 and R134a prices remaining high), end-users are resisting high fluorite prices and adopting a slower procurement pace. Hydrofluoric acid producers are therefore focusing on fulfilling only essential orders.

Crude steel daily output from key steel enterprises in early June increased by 3.2% compared to the previous ten-day period but decreased by 4.0% year-on-year, indicating that steel mills are maintaining production with profit support, but demand weakness is limiting expansion.

The aluminum alloy sector has entered its traditional low season. Operating rates for construction profiles have dropped to 62.3%, while aluminum sheet and foil operating rates have slightly decreased by 0.4 percentage points to 74.1%. Weak domestic demand for household appliances is impacting demand. While lightweighting demands from the new energy vehicle sector are supporting some orders, demand has fallen since May, coupled with a decline in photovoltaic operating rates, limiting overall growth.

Looking ahead, domestic fluorite supply remains ample. Although some mines have suspended production due to safety and environmental concerns, downstream demand has decreased compared to the beginning of June. Therefore, fluorite prices are likely to decline further in the short term. However, according to information from domestic fluorite association meetings, fluorite prices are expected to stabilize in July and August and begin to rise in September.

#Fluorite #MarketAnalysis #ImportExport #SupplyChain #HydrofluoricAcid #Steel #Aluminum

#Metspar #Acidspar #AHF