Fluorspar Prices Surge Amid Peak Season Demand

Fluorspar prices are experiencing a sustained upward trend in September, coinciding with the traditional peak season for the industry. This surge is primarily driven by the demand for refrigerant stockpiling in anticipation of winter. From the beginning of September to September 14th, fluorspar concentrate prices have shown a continuous increase.

On the supply side, conditions in September remain largely consistent with the previous month. Domestic fluorspar companies are maintaining normal operating rates. However, due to ongoing safety and environmental restrictions on domestic fluorspar mining and processing enterprises, there has been no significant increase in overall supply, remaining at a level similar to August. Conversely, fluorspar imports remain robust, with August import volumes expected to show an increase compared to July. Overall, the supply of fluorspar appears to be adequate.

Turning to demand, hydrofluoric acid (HF) prices have remained stable since their increase in late August. Major HF manufacturers have raised their prices, prompting companies to increase their fluorspar procurement to maintain production, thereby boosting demand. This pricing adjustment in HF has, in turn, contributed to the rise in fluorspar prices. The increasing demand for hydrofluoric acid is a key driver behind the current fluorspar price surge.

Several factors are contributing to the upward price pressure. Notably, the growing demand from the new energy sector, particularly in the lithium battery and photovoltaic industries, is significantly impacting fluorspar demand. Production plans for battery manufacturers like CATL and BYD are projected to increase by 15% quarter-over-quarter in the third quarter. Furthermore, the operating rate of lithium hexafluorophosphate (LiPF6) enterprises has rebounded from 65% in July to 78% in August, further driving the demand for fluorspar. LiPF6 is a key electrolyte salt in lithium-ion batteries, and its production relies heavily on fluorspar.

Looking ahead, the demand from these sectors is expected to remain strong, supporting continued price increases. The combined effect of peak season demand, stable supply, and increased demand from the new energy sector points towards continued strength in fluorspar prices. Therefore, the market is anticipated to maintain a fluctuating upward trend in the short term. Understanding these dynamics is crucial for navigating the fluorspar market in the coming months.

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