Fluorite prices continue to rise, hitting a new high in four years

Fluorspar prices are surging to a four-year high, and here's what's driving this trend from an import/export perspective. Since the beginning of 2025, the domestic fluorspar market in China has experienced a significant price surge, reaching levels not seen in the past four years. This surge is primarily driven by a combination of supply-demand imbalances and policy adjustments.

On the supply side, environmental regulations and safety inspections have severely limited domestic fluorspar production. The nationwide special action for mine safety rectification has led to the shutdown and overhaul of over half of the mines in various regions, drastically reducing the supply of raw fluorspar. Simultaneously, stricter environmental policies have increased operational costs for companies, accelerated the elimination of outdated production capacity, and made it more difficult to approve new mines. According to industry statistics, domestic fluorspar production capacity in 2025 decreased by 15% year-on-year, and inventory levels remain at historical lows. This restricted domestic supply creates pressure for import opportunities for those looking to fill the demand.

On the demand side, both traditional and emerging sectors are driving increased demand. The recovery of the refrigerant industry, coupled with the implementation of third-generation refrigerant quotas and the surging demand for fourth-generation refrigerant R1234yf in new energy vehicles, has driven the expansion of hydrofluoric acid production capacity, leading to a year-on-year increase of 8% in fluorspar demand. Furthermore, the explosive growth of new energy sectors such as lithium hexafluorophosphate, PVDF, and photovoltaic panels has resulted in an annual growth rate of over 20% in fluorspar demand for these new material fields, making it a significant incremental factor supporting prices. This heightened demand puts pressure on exports to meet the needs of these burgeoning industries.

Looking ahead, the tight supply-demand balance is expected to support high fluorspar prices. In the short term, the safety rectification efforts are expected to continue until August, coupled with downstream restocking demand in March, potentially pushing fluorspar prices (EXW) above the 4,000 RMB/ton mark. In the medium to long term, the explosive growth in demand from the new energy and semiconductor sectors is projected to result in a global fluorspar shortage of 500,000 tons by 2025, with prices expected to remain in the 3,800-4,200 RMB/ton range.

Policy impacts are also significant. The Chinese government may introduce protective mining policies for fluorspar resources, promoting industry consolidation and accelerating the transformation towards "green mining + high-end manufacturing." This could lead to further supply constraints and potentially impact international trade flows.

What are your thoughts on the sustainability of this round of fluorspar price increases? I'd love to hear your perspectives on the factors influencing these market dynamics and how businesses can navigate these challenges. Let's discuss in the comments below!

#ImportExport #GlobalTrade #SupplyChain #NewEnergy #ChinaMarket #Mining #Commodities

#Fluorspar #Fluorite powder #Acidspar #Metspar #AHF(Anhydrous Hydrofluoric Acid)