Chinese Fluorspar Market Trend – August Update

In August, the Chinese fluorspar price trend showed an upward movement. The average price at the end of the month reached 3,268.75 yuan/ton, up 3.77% from the beginning of the month, though still down 7.62% year-on-year.

Supply Side: Tight Mining Operations, Stable Enterprise Activity

Mine operations remained tight in August, keeping the overall supply of fluorspar relatively constrained. The Chinese fluorine industry continued its current pace, with enterprise operating rates showing improvement. However, upstream mining remained tense. Many backward mines faced elimination, while the discovery and development of new mines remained difficult. Additionally, government efforts to rectify lignite mines have introduced stricter safety and environmental protection requirements, making new mine approvals increasingly difficult.

Despite these constraints, with rising seasonal temperatures, northern enterprises were able to operate normally. Fluorine enterprises maintained steady supply levels, and some plants held modest stock. Mining companies and selection plants stood firm on pricing, which contributed to the upward momentum of the fluorine market during August.

Demand Side: Rising Prices for Hydrofluoric Acid and Refrigerants

The Chinese hydrofluoric acid market experienced a price increase, with mainstream negotiated prices ranging from 10,200–10,800 yuan/ton across regions. While some downstream plants remained idle, spot supply stayed stable, and most buyers continued purchasing on demand. Overall operating rates of hydrofluoric acid plants were above 50%, though many enterprises remained in a loss-making state. With leading producers announcing higher pricing for September, procurement activities in the fluorite market were influenced accordingly.

Meanwhile, the Chinese refrigerant market also moved higher. Industry policies became more stringent, boosting confidence among fluorochemical companies to defend prices. Although the pace of high-price procurement slowed, industry inventories remained healthy and orderly. Demand is expected to see substantial growth under quota controls, providing strong support for the market.

Expanding Applications: Beyond Traditional Refrigerants

In addition to its traditional use in refrigerants, fluorspar is a critical raw material across a wide range of modern industries. Emerging applications include new energy resources, advanced materials, and strategic sectors such as national defence and nuclear industries. Key downstream uses include lithium hexafluorophosphate, PVDF, graphite anodes, and photovoltaic panels. Growing demand from the new energy and semiconductor industries continues to provide a stable foundation for fluorspar consumption.

Market Outlook

Looking ahead, short-term supply pressure will continue to support the fluorspar market. Some mines have suspended production for safety inspections, reinforcing tightness in raw materials. This environment strengthens the sentiment of “buying up rather than buying down.” With refrigerant pricing expected to remain firm in September, the fluorspar market is projected to maintain a steady upward trend in the near term, although procurement behaviour from upstream buyers remains cautious.