Chinese Fluorspar Market 2025: Seasonal Demand and Impact on India

Fluorspar, also known as fluorite (CaF₂), is a critical raw material for industries such as steel, aluminium, chemicals, and refrigerants. India, which relies heavily on imports from China, Mongolia, and other countries, is directly influenced by the supply-demand situation in the Chinese fluorspar market. With seasonal demand kicking in, the Chinese market is showing strong upward momentum, and this is expected to affect fluorspar prices in India as well.

Tightening Supply in China Supporting Fluorspar Prices

The Chinese fluorspar market has shown a steady and positive trajectory since August 2025. A key driver of this price increase is restricted mining activity caused by extreme weather in certain regions, resulting in reduced availability of fluorspar. Sellers are also reluctant to lower prices, creating a firm base for recovery.

Regional variations remain evident, with southern China commanding higher prices compared to northern regions. For Indian importers, this means landed costs are likely to remain firm in the short term.

Growing Demand from Refrigerants and New Energy

Looking ahead, demand expectations are bullish, driven by the refrigerant industry and the new energy sector.

• The refrigerant industry is preparing for the peak air conditioning production season, boosting fluorspar procurement.

• The new energy sector is providing strong support, particularly with demand for lithium hexafluorophosphate (used in lithium-ion batteries) and fluorinated backsheets for solar panels.

  
  

The approaching winter season in northern China will further restrict mining, prompting downstream companies to stockpile fluorspar, much like hydrogen fluoride producers who are already purchasing aggressively. In fact, hydrogen fluoride prices in China have recently risen by RMB 450/ton, further lifting fluorspar sentiment.

Building Materials Sector in Recovery

The Chinese building materials sector is also showing signs of improvement. The industrial prosperity index for August 2025, released by the China Building Materials Federation, stood at 101.2 points, above the critical threshold. However, the price index remained below the threshold, reflecting that building material product prices are still fluctuating at lower levels.

Outlook: What This Means for Indian Importers

In the short term, the Chinese fluorspar market is expected to maintain its upward momentum. Some institutions predict further price increases of RMB 100–200/ton. The traditional peak season (late September–October) will likely accelerate demand due to winter stockpiling for refrigerants.

For Indian buyers, this means:

• Expect higher import costs for both acid-grade and metallurgical-grade fluorspar.

• Stockpiling strategies may be necessary to mitigate volatility.

• Keep close watch on hydrogen fluoride price trends and Chinese procurement activity.

That said, the steady influx of fluorspar imports from Mongolia may bring some price relief, though this is unlikely to offset the strong Chinese domestic demand fully.

Conclusion

Overall, the Chinese fluorspar market in 2025 is in a “steady accumulation, slow climb” phase. With supply tightening, demand from refrigerants and new energy sectors rising, and seasonal stockpiling underway, Indian industries dependent on fluorspar should prepare for firm to higher prices in the coming months.

For companies in India, closely monitoring the Chinese market, diversifying sourcing options, and timing purchases strategically will be key to navigating this period of volatility.